The Provident Bank Offers Ten Tips for Pre-Disaster Financial Planning

On Aug 13, 2014

New Jersey residents now know that going a week or more without power following a major storm is a real possibility. However, there is more one can do to prepare for such a scenario—beyond stocking up on bottled water, canned goods and fuel. Households should also create and abide by a financial plan in case of natural disaster.

“During and after Sandy, some people needed to go days or more than a week without having access to their financial accounts,” said Gail Godesky, Vice President and Area Manager of The Provident Bank. “There are several things one can do in advance of a storm that can offer peace of mind and even a sense of control when calamity strikes.”

The Provident Bank (www.ProvidentNJ.com), New Jersey’s oldest community bank, offers the following ten tips for New Jersey residents to protect their financial security during and following a major storm:

Protect Original Documents – Ask your banker if they offer secured vault locations such as a safety deposit box or locked vault that is waterproof and fireproof for storage of your wills, estate & trust documents, tax returns and more. For added protection, scan and keep digital copies of all files and store them in a secure location online.

Save for a VERY Rainy Day – Set up an automatic savings plan to create an emergency fund (it’s never too soon to start).
Cash is King – It’s ok to keep some money “under your mattress” or in a secure location in your home so you have enough cash or traveler’s checks to last up to a week following a natural disaster.

Automate Transactions – While utilities will forgive late payments as a result of a storm, some companies might not be so accommodating, so it is wise to consider direct deposit if you aren’t already set-up and establish automated payments of important monthly bills so you are covered in case of an outage or postal interruption near the due date.

All in the Numbers – Keep a hard copy of all critical numbers including bank accounts, credit cards, insurance policy, etc., as well as phone numbers of key contacts including your banker, insurance broker, attorney, etc.

Get Covered – After Sandy, many residents learned that some damages were not covered by insurance, or that their insurance policies had lapsed. Be sure to evaluate your policies a few times a year to ensure they are up-to-date.

Take Lots of “Before” Pictures – Take as many pictures as possible of items both inside and outside your home before the storm hits, including cars, windows, furniture, appliances and even the contents of your pantry and refrigerator. You’d be surprised what insurance does cover when you have photographic evidence of loss.

Avoid Scammers – After Sandy, many residents were deceived by bogus charities, home improvement scams, price gouging and more. Be sure to check that your storm-related dealings are legitimate and fair.

There’s an App for that – Several mobile applications exist to help stay connected and manage bank accounts, financial documents, passwords, etc., including FEMA’s Disaster Recovery App (http://www.fema.gov/mobile-resources).

Plan Your Recovery – FEMA’s “Ready” national public service advertising (PSA) campaign (www.Ready.gov) has partnered with the USDA to create a “Family Financial Tool Kit” (http://bit.ly/FamFinToolKit) that acts as a primary source for recovery after a natural disaster.

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