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Financial Recovery after a Natural Disaster · Talking FACS

• 0:01
  Welcome to Talking FACS.
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  What you need to know about family food finance and fitness.
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  This nationally recognized award winning podcast is hosted by the University of Kentucky Family and consumer sciences extension program.
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  Our educators share research knowledge with individuals,
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  families and communities to improve quality of life.
• 0:24
  Hello and welcome to Talking FACS.
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  What you need to know about family food finance and fitness.
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  I'm your host,
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  Mindy McCulley,
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  family and consumer sciences extension specialist for instructional support at the University of Kentucky. Today,
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  I'm excited to have Dr. Nicole Huff extension specialist for family finance and resource management as my guest.
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  Welcome Nicole.
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  Hi Mindy.
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  So our topic today is financial recovery from natural disaster.
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  I know that it seems like Kentucky is perfectly positioned to experience many natural disasters.
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  We have major rivers that border and run through our state.
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  We have flatlands where storms can grow and build.
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  And then we also have mountain regions where weather patterns get stalled and hang around for a little while.
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  So it is natural for us to talk about natural disaster recovery.
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  But what might not be so familiar to our listeners is to really think about and process the steps necessary to recover financially when mother nature packs a punch.
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  Yeah,
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  you're so right,
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  Mindy.
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  And this is why this topic is just really important for Kentucky.
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  And you know,
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  we have experienced that and we see that from the last year and we know that our listeners from Western Kentucky are still recovering from the December tornadoes.
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  you know,
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  several more scares that have had people on high alert.
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  And so when the need was great,
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  people,
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  you know,
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  really jumped in with both feet uh,
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  to lend a hand to help immediately with recovery efforts.
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  And we continue to see that every time there is a natural disaster.
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  And now that we're about six months out there,
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  maybe still many pieces that need to be picked up and reorganized.
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  And much of that is
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  in the wake of people's finances.
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  So,
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  you know,
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  whether you are recovering from a disaster that happened a few months ago or one of the most recent scares or if you're just trying to prepare in advance,
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  then you know,
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  there are some things that you can do.
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  So let's just talk about how someone can get started in recovering from these natural disasters.
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  And so,
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  you know,
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  just the first step is to document your property damage and loss because you're gonna probably be required to offer written documentation to support any homeowners or renters insurance claims or to qualify for federal assistance programs such as FEMA relief.
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  And you may be able to submit uncovered property losses on your income taxes,
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  but to do this,
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  you need to include as much detail as possible.
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  And sometimes we are quick to want to clean up after a disaster before we document.
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  And so you know try to document your losses and record as much detail as possible.
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  You want to record any item like the manufacturer model or serial number for an item,
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  the age of an item,
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  the value of the item if you were to purchase it in you and then the approximate current value of the item and then document what damage occurred.
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  And so take pictures to go along with this documentation.
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  And I know that if you experience significant loss,
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  this may seem like a very daunting or overwhelming process.
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  And so take help where you can get it.
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  The paperwork and documentation process to file insurance claims and apply for emergency assistance can be overwhelming.
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  So do you have tips for ways to simplify this process?
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  You know,
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  I know following a natural disaster survivors are faced with so many decisions that can affect their family's financial well being and their overall well being.
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  And so during the weeks and the months after the event,
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  you're gonna talk with a lot of people and you're gonna make a lot of decisions at a time where your mind probably feels pulled in many,
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  many different directions.
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  And so one helpful tip is to record and document those conversations.
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  So don't just document your property loss but keep track of who you talked with when and the details of each conversation and there's you know a way we recommend to do that to help you stay organized is to get three things: a notebook,
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  a calendar and a large envelope.
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  So in that notebook you're gonna want to record all of those details about the disaster.
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  So who you talked with the to do list contact information for any organization or individual that you have worked with,
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  Anybody that has contacted you.
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  Keep it all in one place in that notebook then in the calendar, use that to record appointments and deadlines in any actions taken because a lot of your recovery process,
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  especially as it's tied to your insurance claims or to reimbursement may have to do with dates and so you want to record those in your calendar.
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  So it's all in a central location.
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  So you don't let any date,
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  important dates slip by you.
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  And also so that you know when repairs were made or when assessments were taken or when an adjuster came to visit your property.
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  And then finally that envelope used that large envelope to to store all of your disaster related receipts.
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  And so you know insurance or assistance programs.
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  They may cover some of your expenses but you will need documentation and so just put it all in one place every time that you make a purchase or purchase a service related to the disaster.
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  and then you know,
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  I can't stress the importance of seeking help where you can If you don't know where to start visit your county cooperative extension office,
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  we can link some very helpful resources in the show notes to help you get started on paperwork to understand the fema process or to to.
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  So you know where to go to a template to replace important documents or papers that may have been lost during the storms.
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  American families save money and cover their bases as they recover after these storms.
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  Yeah.
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  You want to,
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  you know,
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  start by considering how your finances have changed or will change as a,
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  as a result of the natural disasters.
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  You know,
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  if you're gonna be out of your home for an extended period of time,
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  perhaps if repairs are being made or if you've been displaced for any reason,
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  you wanna consider canceling any home based services such as phone or internet,
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  cable or utilities that you won't be using.
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  And so you know,
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  it can be,
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  you don't want to be billedfor something that you cannot use.
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  And so you want to take inventory of those home based services or bills and make sure that you are pressing pause on those that you are working with those agencies or businesses to cancel.
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  Anything that you're not able to use some other things that may be overlooked,
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  You know,
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  as you're trying to cover all of your bases if you've been displaced?
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  Also complete a change of address form at the post office because you want to make sure that your mail comes to you wherever you're residing.
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  And this can be for a short term or a long term change in residents.
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  And in addition to filing claims with your insurance company and the FEMA,
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  you really want to notify your mortgage company of disaster damage to your property as well.
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  And the same goes,
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  if you had vehicle damage or loss,
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  be sure to contact your auto insurance agency so that you are looking at how to protect all areas of your property.
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  And then you know,
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  as I mentioned before,
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  just start to replace any important papers that could have been lost or damaged in the storm's.
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  Things like birth certificates,
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  your social Security card,
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  your photo I.D.
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  or property titles so that you have these in your possession.
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  And we have a handy form that can help with that to show you where to contact in Kentucky to begin the replacement process for those.
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  And we'll be sure to link that document in the show notes.
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  And I know that we like to think that the world is made up of only good people.
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  But the reality is that there are some people out there who are going to try to scam individuals who have already suffered so much.
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  So what do we need to know about those people are going to prey on the vulnerable people who have suffered already so much through these disasters.
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  Yeah.
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  And and and that is an unfortunate downside is that there are people who prey on the vulnerable,
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  especially after a disaster strikes.
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  We see that any time of disaster strikes from fires to floods,
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  to tornadoes.
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  And so you want to be right now while you are stressed and that you are trying to put the pieces back together after the storm.
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  You also want to be vigilant as you protect yourself and your family and your finances and your property from um fraud and from scams.
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  And so you know,
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  be cautious of scams for home repairs for advanced fee loans.
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  If somebody tries to offer you protection from foreclosure or even charity scams or fraud,
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  it's important that you check credentials that you verify that you stop and verify.
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  Those are the two basic scam prevention techniques that you can take is that you,
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  you know,
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  you're,
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  you're careful to read all paperwork before you sign contracts.
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  Don't ever let anyone rush you into signing something that you don't understand if it's something that you don't understand.
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  Get somebody a trusted friend or neighbor or family member or legal professional who can help you make sense of that contract or that insurance claim or any paperwork.
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  Make sure that they are,
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  who they say they are and that you have it in writing so that your money is protected.
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  And you know,
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  if something seems too good to be true or if somebody guarantees alone or financing,
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  if your finances are are stressed,
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  be wary because most things that seem too good to be true are and you know,
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  be sure also not to give out your credit card information,
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  any of your bank account information.
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  your Social Security number to people or companies that you don't know.
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  And so just be again cautious.
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  Be vigilant and make sure that you're working with companies and organizations that you trust.
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  and that have the credentials to support the claims that they make.
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  That is all such great advice.
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  And if we lived in a perfect world,
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  we wouldn't have to give that advice.
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  But unfortunately there are people that are going to to take advantage of the situation,
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  aren't there?
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  Yes.
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  Unfortunately.
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  Nicole, I know that this information will help our listeners who are still trying to put their lives back together from this most recent bout of storms.
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  Do you have advice for those who are pulling together information so that if a natural disaster comes knocking again,
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  it might be an easier process or for those who are taking this as a warning sign and want to pull together materials to ensure that they already have their ducks in a row.
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  Yeah.
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  I think many of the biggest lesson is to um make sure that you have updated your your insurance policy.
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  So your homeowners insurance,
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  your rental insurance,
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  you know what your policy covers and that it's up to date.
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  Also make sure that it takes into account things like inflation.
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  So if it's been a while since you have updated your policy,
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  you may want to look at what is covered and make sure that's up to date and understand that you have at least 80% of your home's value is covered under your insurance costs that replacement cost.
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  So start with your homeowner's insurance policy update that.
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  Um and then begin to you know if your financial paperwork,
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  your important documents,
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  things like your birth certificates and um important financial information.
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  If you don't already have that in a fireproof or waterproof safe,
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  get one,
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  get some file folders that will keep your material safe.
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  Get a safe and keep it there and then make copies of these documents and keep them somewhere outside of your home.
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  Perhaps at your financial institution or at a loved one's house who lives um in a different location that you trust with these documents.
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  And so to go ahead and get that paperwork in order and then make sure your policies are up to date.
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  And that's one of the best pieces of advice I could give.
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  And I will add that when you update those policies,
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  make sure you let the insurance company know of any changes that you've made to your home.
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  Whether you've put on a new roof or whatever.
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  Even if it's not whether related,
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  that's really important information that your insurance company needs to know so that it might make it changing your policy and it might even help to bring down your premiums if you've made structural changes that are going to make your building more sound.
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  Yeah,
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  great advice.
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  Nicole.
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  Well,
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  thanks for sharing this time with us today.
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  I know that this is information that is going to be useful to our listeners as they prepare for a natural disaster that might be impending or as they recover from one that has already occurred.
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  All right.
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  Thank you Mindy. If you are just tuning in,
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• 15:23
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