Financial Preparedness in a Disaster

1. Develop emergency savings. An emergency fund is money set aside for unexpected expenses and financial emergencies. It is recommended that you save for at least 3 to 6 months of monthly expenses in your emergency savings. While this is not always possible for everyone, putting something away for the unexpected can prove invaluable. Also, consider keeping a small amount of cash in a safe place at home for emergency purchases in case ATMs and credit cards do not work during or after the disaster.
2. Gather your records. When a natural disaster or other emergency strikes, the primary focus is personal safety. However, once the threat of harm has passed, accessing digital copies of financial and legal documents will be very important to initiate the recovery process.

   Examples of the records you should consider gathering are:

   • Proof of identity – such as a photo ID, passport, birth certificate, and social security card
   • Credit union and bank account information – account numbers and online banking login information
   • Proof of ownership or proof of occupancy – house deed and rental agreement
   • Insurance information – insurance companies for auto, life, flood, property, or rental insurance
   • Medical information – insurance company information and medical records
   • Pet documents – ID tags, immunization records, and other medical records

   Check out FEMA’s Emergency Financial First Aid Kit) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) for more information on record gathering. The kit is designed to help individuals and families collect and organize critical financial, medical, and other important information.

3. Digitize and store your records securely. As your records and documents are gathered, take photos or scans of them, and secure them online in password-protected locations such as a personal cloud storage or file storage. Make sure these locations are accessible from any electronic device via the internet. Enabling two-factor authentication provides an extra layer of security, as well.
4. Keep your information and records updated. You should check back on your Emergency Financial First Aid Kit (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and records any time your information changes or new versions of documents are issued.
5. Make sure to understand your insurance and reassess the need and coverage. Conducting a household inventory is a great way of record-keeping your assets and possessions prior to seeking or reassessing property insurance. It helps adequately protect what you own and can become proof of possession in the event of an emergency or disaster. Keeping a photographic record and receipts, along with a household inventory, can help determine ownership and value of the property during an insurance claim process.

Floods are the nation’s most common natural disaster. Just 1 inch of floodwater can cause $25,000 of damage to your home.

According to FEMA’s 2020 National Household Survey (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , only 22 percent of households have a flood insurance policy, while 77 percent of households have homeowners or renters insurance policies. Most homeowners’ or renters’ insurance policies do not cover flood damage.

1. File insurance claims. If your property was damaged due to a disaster, collect all policy numbers and contact your insurance company to verify coverage and understand the claims process. Additionally, make an accurate list of damaged property accompanied with pictures and videos. Don’t throw anything away until it’s been accounted for in your claim and confirm with your insurer that it’s safe to discard those items before doing so. Lastly, save receipts for any purchases such as lodging, food, or construction supplies, and file claims as quickly as possible.
2. Find and apply for disaster assistance (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . The Disaster Assistance Improvement Program's (DAIP) mission is to provide disaster survivors with information, support, services, and a means to access and apply for disaster assistance through joint data-sharing efforts between federal, tribal, state, local, and private sector partners. The assistance programs can provide survivors money and grants for uninsured damages and help with housing, food and nutrition needs, or storage facilities.
3. Contact your mortgage servicer, utility companies, and other creditors. You are still responsible for your monthly obligations even when you are affected by a disaster. Call all your service providers and creditors and ask for options to reduce or delay payments to prevent foreclosure, loss of service, or derogatory reporting on your credit report.
4. Beware of fraud and scams. Disasters take a toll on the mental, emotional, physical, and financial health of those who are impacted, making survivors targets of different types of fraud. Visit the NCUA Fraud Prevention Center for useful information about frauds and scams and how to protect yourself from them. You can also report fraud by contacting the National Center for Disaster Fraud Hotline (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) at 866-720-5721

For more disaster and emergency information, visit the Federal Emergency Management Agency’s (FEMA) ready.gov site.