Whether your home was recently damaged or destroyed by storms, many financial challenges are just beginning for Houstonians.
From insurance claims to scammers, your finances are at greater risk in the wake of a natural disaster. Certified Financial Planner Michael Neuenschwander from Outlook Wealth Advisors joined KPRC 2 News Today at 10 to share 5 steps to financially recover from storms.
You can watch the full interview above.
If you’re a victim, where do you start?
Your first priority will obviously be making sure your family and friends are safe, but money issues can come up soon after. Whether your home was destroyed or suffered minor damage, you will likely deal with financial challenges in the days, weeks and even months or years ahead.
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What are some steps to take?
File an Insurance Claim
- You’ll want to start by making a list of anything damaged or lost in the storm, including your home, car or property, and contact your insurance agent as soon as you can.
- Document everything. Take pictures of the damage, and keep damaged items or pieces of those items to support your claim.
- Make copies of everything you give to your claims adjuster for tax purposes.
- Hold on to any receipts for expenses while you’re recovering from the storm. Expenses like housing, repairs and supplies might be covered under your insurance policy.
Register for assistance
- There are a lot of assistance programs to help you recover from the storm, but knowing where to start can be overwhelming.
- The quickest way to register for FEMA assistance is by doing so online.
Stop unnecessary expenses
- If you will be out of your home for some time, notify subscription services like your internet provider to pause your account until you can move back in.
- This will help free up some money in your budget for other expenses.
Prioritize bills
- Figure out how much income and savings you have to pay the bills while you are recovering. Then, if necessary, prioritize your spending.
- Insurance premiums and mortgage or rent should be at the top of your list.
- If you find yourself short, call your creditors and ask for more time to pay.
- Most creditors will be willing to work with you, especially if you notify them before a payment is due.
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Beware of scams
- If your home or property suffered damage, you’ll likely need to hire a contractor. Unfortunately, this is prime time for scammers to take advantage of our situation.
- Some contractors are what’s known as storm chasers; They move around the country, swooping in after a storm hits to sign as many customers as possible. They may even establish a motel room or a rented office as a local address so they appear to be from the area.
- These contractors are often hard to hold accountable if the work isn’t completed properly, because once they leave town it can be almost impossible to track them down.
- The Federal Trade Commission has three tips to help you spot a scam.
- Watch for red flags like a contractor going door-to-door or requiring you to pay up front for the work. Also, beware of cash-only deals.
- Check with your local consumer protection organizations and builder’s associations to see if the contractor you’re considering has complaints filed against them.
- And know the laws. Ask for identification, licensing and insurance. Confirm they will get the proper permits for the work being done.
Is there any thing we should do to prepare for the next time?
- Now is the time to disaster-proof your finances.
- Start by organizing any papers you would need if you were unable to go home for several weeks. Things like health, life and property insurance policies, credit card and bank account information, vehicle registration and real estate deeds.
- Put all of the important documents and emergency cash in a locked, waterproof and fireproof container that you can take with you in case you are evacuated.
- Storms like this are a great example of why I encourage my clients to build an emergency fund. You should have 3-6 months worth of savings in the bank to cover expenses such as this.