Immediately after a disaster strikes, people feel scared,
confused and overwhelmed. Experts say to avoid making
major financial decisions during this time.
However, you need to address some financial issues without
delay and restore a bit of normalcy to your household.
If your home is damaged and temporarily uninhabitable:
- Seek emergency housing. Call the Red Cross, 584-2999.
Phones are answered 24 hours a day.
- Secure your property, if possible. If authorities
allow you to enter, remove valuables and important documents.
Make temporary repairs if you can to prevent further
damage. But stay out of potential hazard areas. You
may receive help from other agencies for short-term
repairs. Keep records of these expenses, because most
insurance policies will reimburse you.
- Conduct an inventory of damaged property and the
degree of ruin. If you can, photograph or videotape
the damage. This will help you prove to your insurance
company that a loss took place.
- Draw up a pre-disaster inventory list from memory
– if you don’t already have one –
as soon as possible. It may help to walk down the aisles
of local stores and remember what you had.
- Notify your insurance company about your loss. Ask
for advice about emergency repairs. Will the company
pay for living expenses such as a motel, food and laundry
if you can’t live in your home? Will this payment
reduce the amount you might ultimately receive for property
damage? Note that reimbursements for living expenses
may be taxable. Insurance payments to repair or replace
property generally are tax-free.
- If you don’t have enough cash, contact the
Red Cross for help with shelter, food and clothing.
The agency can guide you to sources of emergency cash
assistance.
- Reconstruct lost records, such as property tax documents
and escrow papers for your home. You may need these
to file an insurance claim, take a tax deduction for
your loss or seek government aid.
- Notify your employer if you cannot come to work because
of a disaster.
- Let creditors know as soon as possible about lost
bills or difficulty paying bills. Try to negotiate an
agreement to reduce payments or spread them out.
- Call the utility company if your home is unlivable,
so that billing will stop immediately.
- Look into financial assistance. Many government,
nonprofit and private loans and grants may be available
after a disaster. Possible sources include the Federal
Emergency Management Agency, Small Business Administration,
and local city and county government.
The Red Cross also may help those needing long-term recovery
assistance when all other resources are either unavailable
or inadequate. Assistance is based on verified disaster-caused
needs and is free – a gift thanks to the generous
support of the American people.
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