Checklist: Financial recovery after a natural disaster

Start the claims process as soon as possible.

• Review your policy: Do you know what’s covered and what isn’t in the event of a natural disaster? Homeowners insurance typically doesn’t cover events such as flooding or earthquakes. Those separate policies cost an additional fee. Check your policy so you’re prepared to discuss it with your agent. 
• Survey the damage: Start a list of all lost or damaged items. And don’t toss them until a claims adjuster visits your home. If you’re able to, submit receipts and photographic evidence to support your claim. Make copies for yourself.
• Save your receipts: Many purchases can be reimbursed. This list can include temporary housing, transportation, food and materials for repairs deemed “reasonable and necessary.” Reasonable and necessary repairs are those that will protect your home from further damage.
• Hold off on major repairs: Don’t invest too much money in paying contractors and vendors for repairs until the claims adjuster visits and addresses the damage.

Take steps to preserve funds and minimize late payments.

• Have cash on hand: Many places are likely to be without power after a natural disaster. Keeping a small amount of cash on hand may be useful if you need to make some essential purchases.
• Turn off utilities: If your home is completely uninhabitable, notify your utility companies so they can disconnect service and you won’t be charged.
• Prioritize bills: Evaluate the amount you have in your emergency savings fund and compare it to your bills. This will help determine what you can and cannot cover. Insurance premiums and rent or mortgage payments should be your top priorities.
• Contact creditors and lenders: If you’re temporarily unable to pay any debt – such as car loan, mortgage, credit card or student loan – contact your creditors and lenders. Explain your situation, ideally before your next payment is due. Many will waive late fees or allow you to defer monthly payments for a period of time.
• Speak with a credit counselor: The days, weeks, even months after a natural disaster are an emotional time. Don’t make any big financial decisions before speaking with a nonprofit credit counselor. Examples include applying for a reverse mortgage, withdrawing money from a retirement fund, or filing for bankruptcy.