Disaster plans save time, money

When Delores and Harry Haynes evacuated from New Orleans’ Gentilly neighborhood as Hurricane Katrina headed their way in 2005, they made sure to grab the Ziploc bags in their file cabinet.

Those bags contained their homeowners and flood insurance policies and other vital financial information.

Even before they were able to come back to see the damage to their home of 30 years, television reports made it clear the news wasn’t good. “We began making phone calls the day after the storm struck,” Mrs. Haynes recalled. By the time they learned that the entire first floor had flooded, the claims process was already under way.

Still, that didn’t make the next two years of rebuilding and temporary homes easy. Nothing can truly ease the trauma and challenges that stem from losing your home. But Delores Haynes can attest to how important it is to be prepared when the worst happens.

“When you live in this area, you stay ready,” she said.

It may seem the waterfront geography of New Orleans makes it a special case, but this year’s string of storms, floods, tornadoes and wildfires across the country proves that any community can be hit with a natural disaster. But it doesn’t take a major disaster to damage or destroy a home. About 365,000 homes catch fire each year, caused by everything from lightning strikes to faulty air conditioners.

There are a number of steps that can help you prepare for a fire or larger disaster, starting with pulling together your important paperwork.

It’s also wise to pay close attention after an event, to make sure your family is financially protected while you recover and rebuild.

Create a financial disaster kit

Just as essential as a stash of batteries and bottled water are copies of your property deed and insurance policies. Other paperwork that can help you get on your financial feet quickly are: recent tax returns; a copy of your mortgage; recent bank, credit card and retirement account statements; a home inventory, including photos and appraisals of jewelry or other valuables, and records of any major improvements done on your house.

Also good to include: recent pay stubs, Social Security cards and other identification, a list of emergency contacts, medical insurance information and immunization and prescription records.

You can use something as simple as the Haynes’ Ziplocs, invest in a waterproof, fireproof box or stash most of the material in a safe-deposit box. Just remember to update the information periodically and take the key when it’s time to evacuate.

Another option is scanning documents and storing them online, so you can access them from any computer if you’re displaced. A virtual storage service may cost as little as $2.99 per month. Or you can simply email the documents to yourself and set them aside in a designated folder.

One thing that can’t be stored virtually: cash. The American Red Cross recommends having enough money on hand to get your family through three days if you’re displaced and ATMs are unavailable.

More details on financial planning for a disaster can be found on the Red Cross website: http://rdcrss.org/bHOP9y.

Review your insurance policies

Confirm that your coverage will allow you to rebuild your house if it’s destroyed — make sure you’re covered for replacement value not just market value.

Also ask about discounts for taking preventive measures. Many insurance companies will reduce premiums if you install fire detection systems that can automatically trigger a call to the fire department. Other potential money- and property saving devices include adding heat detectors in your attic that can provide early warning of fire and installing automatic valves that can shut down a water supply if a pipe bursts, said Richard L. Standring, Northeast regional manager for the Fireman’s Fund Insurance Co. “Anytime you’re adding a protective device to your house, you will get a discount.”

Even if you don’t live in a flood-prone area, it’s worth looking into the National Flood Insurance Program, which is administered by the Federal Emergency Management Agency. Coverage in moderate-to-low risk areas can cost as little as $129 per year. Details are available at www.floodsmart.gov.

Another thing to consider is how you can get in touch with your insurance company should a disaster strike. Jamie Bisker of IBM works with the insurance industry to find the most effective methods for agents to reach out to clients during a crisis. Many are now using tools like Twitter and Facebook to connect with customers. Individual agents are also using text messaging — so make sure your agent has your cellphone number.

Have a plan for everyone in your family

Every family member should know where in the house to go if there’s a storm warning, and how to get out if there’s a fire. The plans should be mapped out and rehearsed to make sure they work: Can your young children manage the climb out of their bedroom window onto the garage roof? Do they know which room to head to if a tornado is on its way?

A plan for evacuation to another city is also a good idea, especially in locations prone to hurricanes or flooding.

If it’s time to get out, you don’t want to leave your pets behind. The American Society for the Prevention of Cruelty to Animals works with the Red Cross to set up pet facilities at emergency shelter sites. There is one in Joplin, Mo., where residents are recovering from the devastating tornado May 23, but such shelters aren’t set up often, and typically Red Cross shelters don’t allow animals, said Tim Rickey, senior director of ASPCA’s field investigations and response team.

“I have seen a tremendous increase over the last few years of neighborhoods or communities being evacuated and residents not being allowed back in sometimes 10 days or more after the event,” Rickey said.

The ASPCA also recommends having an emergency kit with pet necessities prepared, and identifying kennels or other locations outside your own community. Such facilities will most likely charge for boarding, but may offer discounts to customers they’ve seen before. More details on pet prep can be found at www.aspca.org.

Without a plan, your pets are likely to end up at an animal shelter — there are still about 900 being cared for at the Humane Society shelter in Joplin.