Are you financially prepared for a natural disaster?

Natural disasters are unavoidable, but one can be prepared to handle these and recover financially. ET Wealth lists how to do so by putting together an emergency financial kit.

The 3-step programme

Here are the three essential steps you need to take at the following junctures to overcome a disaster and get back financially on your feet.




Before a disaster strikes
A) Safeguard critical documents

Store important documents and their copies in a locker or safe, an external drive and even on the cloud, if possible. The last option will make it easy to access these during or after a disaster. Here’s a checklist that you can fill up for your documents and share with the family:

B) Check your insurance coverage
Insurance is an important part of financial emergency preparedness as it covers you in case anything bad happens. While almost everyone has health, auto and life insurance, here are two more you can consider.

Flood, fire, cyclone, earthquake and man-made disasters: Check that your home insurance policy covers all these. If your area is prone to a certain type of disaster, such as earthquakes, see if you can add more coverage under such categories.

Renters’ insurance: If you’re a tenant, the house you live in may be covered by your landlord, but your belongings won’t be. So, consider getting a tenant insurance that offers coverage against fire, theft and burglary, electrical breakdowns, manmade hazards, and natural calamities. Some plans will also cover expenses for an alternate accommodation while the damaged house is being repaired or you shift to another apartment.

Insurance checklist
As insurance is one of the most important elements that will help you recover financially, fill up this card with your details and share it with everyone in the family.

Beware of scams after a disaster
A disaster often leads to scamsters coming out of the woodwork. To avoid being conned, always ask lots of questions and documentary proofs. Watch out for:

Never sign anything if the other person isn’t giving you time to review it. Ask a trusted friend, relative or lawyer before taking a decision.

By Namrata Dadwal ( Economics Times )