A lifelong resident of Lafourche Parish in southern Louisiana, Jeanne Gou knew that storms hitting the area required preparation. She had wind and hail insurance and had a solid savings account. But it wasn’t until Hurricane Her Ida’s 150-mph winds ripped off part of her roof last August that she experienced the wrath and its aftermath up close.
“In just one day, a storm came and blew away everything I had worked so hard for,” La.
As the cost and frequency of weather-induced disasters increase, it becomes increasingly important for some countries to strengthen their finances to the extent possible to prepare for such catastrophes.
However, the average from 2017 to 2021 was 17.8 events per year.
A significant part of that increase may be related to population growth. More homes, property and infrastructure are exposed to these weather hazards, and much of the increase is occurring in vulnerable areas, where building codes are too weak (or simply not enforced). ) to withstand damage.
However, climate change “ Increased frequency Climate scientist Adam Smith, who led NOAA’s analysis, said: Heavy rains are becoming more common in eastern states. ”
“This suggests that very high activity in recent years is becoming the new normal,” he added.
Gu, 45, had a bad feeling about Ida. In her prescient move, she got her family together and left her home for the first time before the storm hit.
The one-story brick house was badly damaged, and Gu was forced to couchsurf with his three teenagers and his eldest son for a while. They then settled in their camper in the garden. First it was loaned by a friend, then it was provided by a friend. state program —while the house burned down and was being repaired. Only in June, after 10 months, the family was able to return home partially. The house is unfinished and meals are still cooked in the campervan.
Still, in a way Mr. Gu was lucky. Her employer had to take her out of work for four months, but her paychecks came in seamlessly. However, there were some things she would have done otherwise, such as taking a box with important financial documents with her when she fled.
Her wind and hail insurance company went bankrupt, causing the state guarantor to take over the claim, ruining an already slow process. It took her nine months to receive her first insurance check.
Not all homes are prepared for the worst. But there are some protections. Everyone you can try. Here’s where to start:
Evaluate risk. various online tool It can provide a starting point for assessing your home’s risk to global hazards.
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Risk factor has created an easy-to-use tool that outlines flood, fire and extreme heat risks (and other hazards involving winds soon) for most homes across the country. Entering an address drills down to the property level to reveal potential hazards. For example, you can indicate how likely your property is to be flooded, where water is likely to accumulate, the damage it may cause, and how much it will cost to repair.
“We’re not just looking at current risks, but how they’re changing,” said the founder of the First Street Foundation, the research and technology nonprofit behind the tool. and CEO Matthew Evey said, trying to measure climate risk.
The U.S. Geological Survey hazard map For earthquakes, while the Federal Emergency Management Agency and the National Flood Insurance Program maintain flood map (also decision whether homes with federally backed mortgages are required to have flood insurance). The Flood Program recently revised its assessment methodology. Risk Assessment 2.0but you’ll need to contact a flood insurance agent who can share more about the risks inherent in your property, said FEMA spokesman Jeremy Edwards.
You may also be able to find hazard information for more regions.For example, Californians put their address in My Hazard website. Also, if you’ve never been to a community before, talk to your neighbors.
Reduce potential damage. Once you have a better understanding of the risks, you may I can do it To minimize damage flood Also fire attack.the cost of relief Varies, but may be reduce your insurance premium. For example, some insurers offer meaningful discounts in hurricane-prone areas after homeowners install roof braces and straps, said Marsh McLennan, an insurance producer in Metley, Louisiana. Alyssa Bourgeois said.
The Risk Factor website offers suggestions. for danger Faced with certain assets, many communities have programs that provide residents with financial assistance to harden their homes against certain hazards, but funds are often limited.
Evaluate your insurance needs. The insurance market varies greatly by region and region-specific hazards. Standard homeowner and renter insurance does not cover all hazards.flood and earthquake Individual compensation is always required. Wind and hail (hurricane) coverage may include its own deductible as part of the homeowner’s policy, or it may be a separate policy, at least in certain areas. Wildfires, meanwhile, are often embedded in many policies, experts said.
Douglas Heller, Director of Insurance, Consumers Federation of America, said:
Flood insurance (see Ann Carrns’ guide here) is generally available through the National Flood Insurance Program administered by FEMA. Most Californians California Seismological Service, A non-profit organization established by state law to provide insurance through member insurance companies.
Most likely want to buy sufficient coverage So it’s about rebuilding the property, not how much you’ll pay to buy it again. United policyholderconsumer advocacy groups.
But many households in the highest-risk areas, including hurricane-prone states like Louisiana and Florida, struggle to find affordable coverage as insurance companies exit the market in droves. I’m here.
Jude BoudreauNew Orleans financial planners get calls every week from customers asking if they should continue to live in New Orleans given rising insurance premiums. have been notified that they will not be renewed, leaving them with fewer options,” he said.
Until rates stabilize, many people will increase deductibles or reduce coverage to include “other structures” such as garages and private property to keep costs manageable. relies on the usual strategy of
Please read the new and existing policies carefully. A single oversight could have cost Guu thousands of dollars. She didn’t realize that her wind and hail insurance wouldn’t be enough to replace the contents of her destroyed home, providing a depreciated value. As a result, the insurance company calculated her loss at $26,000, but she only received her $14,000. lesson? Choose “replacement value” coverage whenever possible.
and don’t forget car and other vehicles. Comprehensive car coverage required by car lenders generally provides protection against natural disasters. But older, lower-value cars may not have comprehensive features (and may not be worth the cost anyway). “In such cases, it’s a good idea to set aside the annual premium amount in a savings account instead of paying the insurance company,” Heller said.
take inventory. By inventorying the contents of your home, you can maximize the amount you receive when filing a claim with your insurance company. Various tools can help. For United policyholders: home inventory spreadsheetthe National Association of Insurance Commissioners, Related appsthere are other stock apps.
The quickest way is to walk around the house with your phone’s video camera and narrate what’s going on along the way. Don’t forget to open closets, cabinets, drawers, storage spaces and garages. Then email the file to yourself or store it securely online (perhaps on an external hard drive as well).
At stake is real money. Gouaux recovered only about $14,000 of his $53,000 wind and hail insurance coverage.
“The night we left, someone posted: Please take pictures of all the rooms,” she said. Everything was scattered all over the place and it was very hot.”
Protect your valuables. If you have expensive collectibles or valuables (art, musical instruments, jewelry), many homeowners’ policies have limited coverage, so it’s common to have a personal item that covers all risks. We recommend that you consider insurance.
Collect and protect important documents. Store all important documents such as wills, advance directives, insurance policies, social security cards, birth certificates, marriage certificates, passports, tax returns, etc. in fireproof and waterproof boxes. Consider storing electronic copies on an external hard drive (use password protection) or in the cloud.
FEMA’s financial emergency kit includes a comprehensive Checklist Things to collect and protect, and page 41 emergency financial first aid kit You can complete it online and keep it in a safe place. The American Red Cross is version its own.
If you have to leave your home, experts recommend taking important documents with you in case you need to file a claim with your insurance company or file with FEMA. assistance.
Store your emergency funds. Having access to money for basic needs is also a consideration. If there is no electricity and ATMs are not working, you will probably need cash. Keep some in a safe place.
If you’re receiving federal benefits by paper check, now is the time switch Automatic Electronic Deposit. The same is true for other payments you may receive by email.
If you don’t have a long-term emergency savings account, consider what else you have available if you really need it. Home A person with a line of credit in her equity may set aside some capital for safekeeping before the lender freezes the line.
“As the storm was approaching, I was going to transfer some of it and pay the interest for a few days,” Boudreau said. “If all goes well, you put it back. What it costs is a few days of interest.”
Roth’s personal retirement account can also be used as an emergency account as contributions can be withdrawn without taxes or penalties, but it is not always possible to get the money back. Hardship withdrawals are subject to income tax and a 10% fine unless Congress enacts specific relief, so use a 401(k) plan and related accounts as a last resort. , 401(k) loans.
Assuming evacuation, what to do took. Mr. Budo, who has lived with the threat of hurricanes most of his life, walks into the house and thinks of the irreplaceable. It’s probably something that fits in a plastic box.
“Define what they are, or make a list, and what would you take if someone knocked on your door and said, ‘There will be a fire in half an hour’?” said. “It’s also a way of practicing your outlook on life.”