TALLAHASSEE, Fla. — In 2022, 18 weather-related natural disasters caused more than $313 billion in damage. Yet, a recent survey shows nearly a quarter of U.S. residents have no emergency fund set aside for natural disasters.
George Pikounis, from Burns Estate Planning, says everyone should have emergency cash on hand. During major power outtages, banks and ATMs could be offline for several days, and even credit card machines may not work. Having a few hundred dollars on hand could help pay for temporary housing, food and medical expenses.
It is also important to put your emergency cash and important documents in a locked, waterproof/fireproof container. Pikounis recommends scanning and saving digital copies of important documents in a secure online location. You may need access to important papers, like insurance polices, credit card and bank account numbers if your home is damaged. You can find a list of important documents to consider at burnsestateplanning.com.
Thinking longer-term, Pikounis says you should set aside at least three to six months of living expenses in an easily accessible account. Reserve that money for emergencies only. This will help you avoid taking on debt during a disaster to make ends meet. If you do have to use the account due to an emergency, rebuild the fund as soon as you can.
Finally, review your insurance polices. Most home polices do not cover earthquake or flood damage. You can buy additional coverage.