Budget Basics
Disaster Planning
Hurricane Disaster Planning: Be Safe and Financially Prepared
Each year families across the region watch their money suddenly disappear as they prepare for hurricane season. Stockpiling water, ice, batteries, propane and canned goods can get expensive. Add to that, the money spent on plywood, shutters, filling up gas tanks, hotel costs if evacuating, lost wages because of missing work and soon all your savings is spent – but the monthly bills continue to pile up.
In June of 2006, the Department of Labor reported that the average weekly wage in Florida is $708, 8.9 percent below the national average. If a family earning such wages or, less than those wages, is not prepared for the growing cost of disaster planning, they could be financially devastated after a single, active hurricane season. Florida’s hourly workers have already lost millions due to the hurricanes, and families living paycheck-to-paycheck have also suffered terrible financial setbacks.
Be Prepared for the Long TermPrepare a hurricane budget, which includes repetitive costs associated with each and every hurricane warning – such as filling cars with gasoline, replenishing ice, propane and water and the amount of money taken out of savings to have “cash on hand” in the event of banks and ATM machines not up and running. Gas alone is costing families $50 to $100 to fill up their tanks. Multiply that by four weeks and a family who owns two cars, $400 to $800 dollars can be spent on gas alone.
Families should start a “Hurricane Fund” each year to help them financially survive a long hurricane season. By saving $20 out of each pay period, a family can gather over $1,000. It is well documented that even hurricanes that DON’T hit your area will cost you money just by preparing for the worst. That is why it is so essential to have your hurricane fund at its maximum.
If You are in a Financial EmergencyAfter the storm has passed, many families find themselves in a financial state of emergency and have questions about paying bills, insurance, and unemployment benefits. The following are some tips that may help your financial situation during a crisis.
If you are concerned about paying off your bills take advantage of grace periods on mortgage and credit card payments that are offered to hurricane victims.
Most mortgage lenders will offer 90-day grace periods on payments and some credit card companies will offer 30-day grace periods, but hurricane victims must contact these creditors in order to get the grace periods.
If you are renting, your renters insurance pays for damage or loss of your personal property. It does not cover damage to the structure of your home, which is the landlord’s responsibility.
If you have lost your job, or your employer is no longer in business as a result of the storm, immediately file for state unemployment benefits. Applicants must file with state unemployment agencies.
Be careful who you give personal information to. FEMA, insurance companies, and banks may need to get details like social security numbers to verify your identity. Most other organizations do not need this information.
As far as working with contractors, be very careful. Get estimates from more than one licensed, bonded, reputable contractor; check licenses and permits; get contracts in writing and find out what neighbors are paying for similar work.
Also, pay as the work is getting done, not up front. Be sure all official inspections and approvals are in place before making a final payment.
