Looking back at 2007, it sure seems like nature had it in
for the suburbs. The whole country was beset by weather
related disasters. We had wildfires in Southern California,
ice storms in the Midwest, and flooding in the Northeast.
It was devastating for those affected, and chilling for
everyone else. The damaged homes on the news were ordinary
suburban homes. It was so easy to imagine it happening to
us or someone we loved. The truth is that our homes are
susceptible to fire and water damage. They are lovely straw
houses, waiting for an accident, a little negligence, or
the perfect storm.
So what should we do to prepare?
If you want to recover financially from a home disaster,
there are two things you need to protect: your digital
information and your physical possessions. Vanessa Wood of
Design to Spec, LLC http://www.DesignToSpec.com/ was one of
those unlucky people whose home was flooded on four
separate occasions in 2007. She gives us three tips for
protecting our digital files and connections:
1. Don't touch that computer! Whether your computer has
been under water, smoke damaged, or hit by debris, it might
not be safe to touch immediately after a disaster. Unplug
your computer so it will not experience a power surge when
downed power is turned back on. Allow a professional PC
consultant to examine the hard drive. A good consultant can
recommend a sterile lab that is expert at the recovery of
valuable data and files.
2. Store hard to replace records and files on a server.
This could even be the same server that hosts your website.
Taking this extra step may entail scanning documents and
choosing to accept bank records in a digital format. Not
only will you have your records in a safe location, but you
will free up space in your filing cabinets and shelves.
Check with your tax advisor to verify which records can be
held as digital records, rather than paper.
3. Stay mobile. Stay flexible. You may not be home for
awhile. You might have to handle your finances or an
insurance claim from a friend's house, library or hotel. Be
sure your laptop has the programs you use everyday. Know
how to forward your phone numbers to your cell phone. If
you use an email address that's derived from your internet
cable service (for example, janedoe@optonline.net) know
your service password so you can read emails as web mail
because a storm, fire or other disaster may knock out your
local cable service connection. Remember, too, that online
banking services can be invaluable when trying to manage
bill payments in a crisis.
What about your physical possessions? You should ask
yourself how much it would cost if you had to replace all
your belongings yourself. Even if you have home insurance,
your initial estimate might be closer to reality than you
thought. A client of mine, Julie, lost all the contents of
her home when her condo complex burnt to the ground. She
offers three tips for protecting and recovering your
physical belongings:
1. Do not be underinsured. If you purchase big ticket
items, or remodel, make sure you update your insurance
policy to cover all your new additions.
2. Keep detailed records of all estimates, transactions and
conversations. Julie had to go over her agent's head to a
supervisor to get the rest of the money that she was owed
for her insurance claim. She was able to do this because
she kept notes and copies of everything she mailed and
faxed.
3. Don't keep your important documents in your home. Keep
your passport and other important documents in a safe
location. Julie's home safe didn't withstand the heat of
the fire and all was lost. If you must keep the originals
at home, keep copies in a separate safe location, like a
safety deposit box at your bank.
My hope is that everyone affected in the disasters of 2007
were well prepared, but I know some are probably still
struggling to recover what they lost. Make sure you're
prepared for disaster by following the tips above.
----------------------------------------------------
Jill Russo Foster provides practical tips for everyday
finance. Learn more about protecting your credit and living
within your means with Jill's popular free report,
bi-monthly ezine, and credit report reminder program,
available here ==>
http://www.themortgagearrangers.com/resources.asp
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