The earthquake that struck Alaska involved prolonged shaking and it is said to have prompted tsunami warnings, thereby sending people scrambling for shelter. Alaska residents reported only minor damage.
The earthquake was a reminder that the “Big One” can strike at any moment. And rather than remaining woefully unprepared for the potential financial fallout from such a disaster, here’s how you be financially ready for an earthquake.
The right insurance
Be financially aware of how much potential damages can cost you. Then review your insurance policies. Make sure to find out about what they do and do not cover. Know the difference between replacement cost coverage and standard coverage. Because some policies only pay the cash value of an insured property.
Ensure to have enough insurance to cover home renovations and improvements. If you live in earthquake-prone areas and consider policies such as earthquake insurance.
Have an emergency fund
It can even be a cash or savings account. Let’s be honest uncertainties hit when you’re least expecting them. So, in case of an emergency or the sudden need to evacuate, be sure that there’s enough cash or a traveler’s checks in a safe place. This will come in handy since it is easily accessible in your hour of need. Also bear in mind that ATMs will not be available in the event of a disaster. Also, consider opening up an emergency savings account where you stash your cash. Another option to consider is having a designated credit card exclusively for emergency use.
Protect financial documents
We couldn’t stress over this more. Copies of financial and family documents should be stored in a safe place. Preferably one that is safe from fire and water. Your documents can include automobile titles, tax records, stock and bond certificates, deeds, wills, trust agreements, birth and marriage certificates, photos, passports and insurance policies. It is safer to store originals in a rented safe deposit box.
Have a list of all your possessions
For the sake of your insurance. Ensure to maintain both written and visual records of all your household items and valuables. Yes, even those stored in your basements, attics, or garages.
You can be as organized as Monica Geller and create files with serial numbers for every item. Store the receipts for your appliances, electronics and other valuables. Why? These documents are critically important while filing insurance claims.
Earthquake-proof your home and property
It’s always better to take steps to minimize damage to your home. If your home is in an earthquake-prone area, ensure anchor objects that could topple and cause damage. Be on the lookout for television sets, china cabinets, bookcases, water heaters and more. Reinforce your roof and foundation.