What to Do After a Natural Disaster

Hurricanes. Floods. Tornados. Wildfires. No matter where you live, it’s likely you’re vulnerable to a natural disaster of some kind. Let’s look at the steps you can take to recover and move forward – physically, emotionally and financially – when nature wreaks havoc.

Immediate Safety Measures

Ensuring Personal and Family Safety

In the immediate aftermath of a disaster, protecting yourself and your loved ones is paramount. According to the Red Cross, you should check the area around you for safety and listen for instructions on local television or radio stations about safe places to go. Only use the telephone to report life-threatening conditions or to call your out-of-town emergency contacts. Seek medical help for any serious injuries and do your best to remain calm.

If you had to evacuate your home, return only when local authorities declare it safe – and bring a photo ID when you do, because access to the disaster zone may be restricted to residents only.

Assessing Property Damage

Once you’re clear to return home, your first instinct may be to assess the damage – but again, take the utmost caution. The Red Cross recommends a thorough check of the outside of the home before you enter – looking for loose power lines, broken gas lines, foundation cracks, missing support beams or other damage. Once inside, if you smell gas or hear a hissing noise, move far away and contact the fire department. Beware of animals, like rodents, insects, or snakes, that may have entered your home. And watch for sagging ceilings and floors and other damaged or unstable objects. It may be wise to wear a hard hat and eye protection.

As you make your way through your home, document the damage as thoroughly as possible with photos and videos. Capture each affected area from multiple angles and take close-up shots of items that might need closer inspection, like broken windows, water stains or cracks in the walls. It’s likely you’ll need this visual evidence to substantiate insurance claims and help speed up the process.

Contacting Insurance and Financial Institutions

Filing an Insurance Claim

As soon as you and your family are safe, get in touch with your homeowners insurance company to start the claims process. Here are some steps to guide you:

1. Contact your provider – Many insurers offer multiple ways to file claims, whether it’s online, over the phone or through a mobile app. Be prepared to provide details about the disaster, includifng the date, nature of the damage and any immediate actions taken to prevent further loss.
2. Review your policy – Understand what your homeowners insurance covers and what it doesn’t, and ask your provider if you’re not sure. For example, the housing structure, personal property and outbuildings (like a garage or shed) are usually covered, but certain valuables like artwork or jewelry may only be covered up to a certain amount unless you have opted in to additional coverage. Also, floods typically require flood insurance that’s separate from homeowners insurance.
3. Work with the insurance adjuster – An adjuster will likely visit your property to look over the damage firsthand. Provide them with all the documentation you’ve gathered, including your photos and videos, and a list of repairs needed and repair estimates. Even if you find more damage after the adjuster leaves, you can still report it and seek compensation.
4. Review the settlement offer – Once the adjuster has completed their assessment, you’ll receive a settlement offer. Review it carefully to make sure it reflects the extent of the damage and aligns with your policy coverage. If you’re not satisfied with the payout, you may be able to negotiate with your insurer or appeal the decision.

Seeking Financial Assistance

After a disaster, there are also several government and community resources available for relief, including financial aid, housing and food assistance. These include the Federal Emergency Management Agency or FEMA, nonprofits like the American Red Cross and the Salvation Army, and the U.S. Small Business Administration, which provides low-interest loans to businesses, homeowners and renters impacted by disasters.

Many state and local governments offer additional help, like emergency housing and utility bill assistance, and local churches, mosques, synagogues and other community groups and charities often provide services.

If you were impacted by a federally declared disaster, seeking help through FEMA may be the place to start. Here’s how to apply and what you can expect:

1. Call 1-800-621-FEMA (3362) or register online at www.fema.gov.
2. They’ll ask for general information about your income, insurance and damage to your home and give you an application number.
3. A few days later, a FEMA inspector will call to arrange a visit, and they’ll come and look at your disaster-related damage.
4. If you qualify for FEMA’s Individuals and Households program, you’ll receive a check in the mail or direct deposit to your bank, and a separate letter explaining how you may use the assistance.

Health and Well-being

Addressing Physical and Mental Health Needs

A natural disaster may be devastating to your home and finances, but it can also take its toll on your mental health. Getting the emotional support you need is vital in a time of heightened stress and anxiety.  

Where can you turn for help? FEMA’s Crisis Counseling Assistance and Training Program helps survivors of disasters with coping mechanisms and mental health resources, and the Substance Abuse and Mental Health Services Administration’s Disaster Distress Helpline provides crisis counseling. Many local mental health agencies and professionals offer disaster-related services, and community organizations or houses of worship can be another source of comfort. Your employer may also have an Employee Assistance Program that offers confidential counseling, stress management support and other resources.

Taking care of your emotional wellbeing is an important step on the road to rebuilding. But you don’t have to go through it alone. Lean on the many support services available to you – along with your friends, family, co-workers and neighbors – to help you through this difficult time.

Financial Management After a Disaster

Immediate Financial Steps

While you’re rebuilding your home after a disaster, you might find you have to rebuild your finances as well. In the short term, cash flow should be a primary focus. Financial assistance from organizations like FEMA can help with some of your rebuilding expenses, but you may need to tap into emergency savings for day-to-day expenses and other needs. We recommend having 6 to 24 months of cash reserves, but how much you need depends on the stability of your income and your monthly expenses.

Focusing on the essentials – like food, housing, health care and utilities – can also help. Try to delay or minimize non-essential expenses until your cash flow becomes a little more stable.

Debt may be another area of concern. Contact your bank or lender to see if you can reduce or defer payments on your mortgage or other loans. If you do this, be aware of the bank’s repayment terms and whether the payments you deferred will be due in a lump sum at the end of the specified period or if they will be added to the end of your mortgage term. If you think you’ll have trouble paying your credit card bill, the Consumer Financial Protection Bureau advises you to contact your credit card company right away. Many card companies will work with you on a payment plan if you’re facing a financial emergency.

Everyone’s financial needs are different after a disaster. Talk to a financial advisor for help in creating a personalized recovery plan that can include budgeting and cash flow strategies.

Long-Term Financial Strategies

Once your cash flow stabilizes, you can look toward your long-term financial picture. If you’ve had to use up some or all your emergency savings, focus on rebuilding it to your pre-disaster level. Start with consistent, automated payments – however small – to a savings account or other cash vehicle. You may have also had to suspend contributions to your 401(k), IRA or other investment accounts. Return from the sidelines with smaller contributions if necessary, then gradually increase them as you have more funds available. Even a little can go a long way.

It’s also a good time to reassess your entire financial picture and how you plan for the future. Is your insurance coverage still right for your needs? You may have a new perspective after a natural disaster. Have your goals or priorities changed? Is your tolerance for risk different? A financial advisor can help you clarify your goals and develop long-term strategies that make sense now.

Preventing Scams

Identifying and Avoiding Common Post-Disaster Scams

A natural disaster can bring out the best in people. Unfortunately, it can also bring out the worst in some. Here are some of the most common scams to look out for and tips to avoid them:

• Be aware of con artists posing as government employees (such as FEMA workers), insurance adjusters, law enforcement officials or bank employees. Always ask for identification and call the organization the person claims to work for to verify. And never give personal information to anyone you don’t know.
• Watch for contractors or other workers offering to help with home repair, debris removal and other assistance. They may try to pressure you into making a quick decision. Take your time to stop and think and don’t sign anything without reading it first.
• Don’t fall victim to price gouging. Be wary of people offering “limited time deals”, claiming that prices will rise if you don’t act soon (also known as “scarcity tactics”). Never pay by wire transfer, gift card, virtual currency or cash, because it can be harder to get your money back.
• Protect against identity theft. After a disaster, scammers could prey on your vulnerability by asking for your Social Security number or other sensitive information. To be extra careful, you can freeze and unfreeze your credit record for free at the three nationwide credit reporting companies. You can also put a fraud alert on your credit record for one year, which means lenders will call to verify your identity before extending new credit.
• Be alert for fraudulent emails and social media messages, which are common after natural disasters. Don’t open any suspicious links or attachments. Instead, contact the organization the message claims to be from through their official website or phone number.

After a Natural Disaster, Consult a Financial Advisor

Picking up the pieces after a natural disaster – both literally and figuratively – can be one of the biggest challenges you ever face. But know that there are many ways to get help and support rebuilding your home, your life and your finances. Once you’re in a place of safety and relative stability, contact a financial advisor for personalized planning and long-term strategies that can put you on a path to a more secure future.