Weathering the Storm: Financial Preparedness

Shannon Prickett

AVP Customer

Relationship Manager

Cape May Court House

Severe weather can wreak havoc on our lives, and its financial impact can be just as devastating. While we can’t control the weather, we can take steps to protect our finances. Here’s how to weather the storm financially.

Build an Emergency Fund: Experts recommend having three to six months’ worth of living expenses saved. This cushion can cover essentials like rent, utilities, and food in case of job loss or unexpected expenses. Consider opening a high-yield savings account to maximize your earnings.

Review Your Insurance Coverage: Ensure your homeowners or renters insurance adequately covers potential damages. Consider additional coverage for floods, earthquakes, or other specific risks in your area. Take photos or videos of your belongings as proof of ownership.

Protect Important Documents: Keep copies of essential documents, such as birth certificates, social security cards, and insurance policies, in a secure, waterproof location. Consider scanning and storing digital copies in the cloud.

Create a Financial Inventory: Make a list of your valuable possessions with photos and purchase receipts. This documentation will aid in insurance claims.

Understand Your Financial Obligations: Know the terms of your loans, credit cards, and mortgages. Contact your lenders to discuss potential payment plans or hardship programs if needed.

Be Wary of Scams: After a disaster, scammers often prey on vulnerable individuals. Be cautious of unsolicited calls, emails, or visitors seeking personal information or financial assistance.

While no one can fully anticipate the financial toll of a weather emergency, taking proactive steps can significantly mitigate its impact. By building an emergency fund, reviewing insurance coverage, and protecting essential documents, you can increase your financial resilience and focus on recovery efforts.