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Residents across Florida are well-acquainted with Hurricane Season in the Atlantic Ocean—the period of time from June through November when hurricanes are most likely to form. While many know about the physical risks and dangers these storms pose to people and property, a financial cost can come into play, too. Let’s talk about preparing your finances ahead of the storms.

Secure Your Personal and Financial Documents

The progress of tropical storm systems can feel unpredictable. You may be expected to relocate depending on where you live should local authorities issue an evacuation order. At that point, you will have very little time to organize and get to safety.

Your hurricane preparedness plan should include bringing important personal and financial documents. Store them in a waterproof bag. If possible, back these documents up electronically through a cloud storage service like iCloud or Dropbox. Having physical and digital copies available ensures you have something to reference as your situation changes.

Some documents you may need include:

• Birth Certificates
• Passports, Driver’s Licenses, or Government-Issued ID
• Social Security Card
• Vaccination Records
• Tax Records
• Titles and Deeds
• Insurance Policies
  

Build Your Emergency Savings Account

Homeowners know to board up their windows and use sandbags to mitigate the destructive potential of hurricanes. Similarly, it’s a good idea to reinforce your finances. Having an emergency fund can go a long way in responding to unforeseen expenses sensibly.

An emergency savings account is useful for covering the costs incurred from a severe storm. You may need these funds for lodging, gas, food, and supplies to evacuate. They are also useful after the storm passes should you need to make repairs to your home.

Remember: it’s never too late to start saving. Try to set aside a fixed amount every month. Having a separate, dedicated account for emergencies can help you keep track of your funds. Every bit helps. For example, saving $100 dollars a month starting in June adds up to $400 by September. These savings can go towards covering evacuation costs.

Storm systems can disrupt daily life easily. Credit card readers and ATMs may be offline during power outages. Having cash on-hand as part of your storm preparedness kit will be a good idea. Getting familiar with card controls might also help ensure your transactions go through smoothly if you have evacuated far from home.

Evaluate Your Insurance Coverage

Having an insurance policy can make a big difference in helping you become whole after a storm. At the same time, it’s important to know the exact things your policy will cover and for how much. Having this knowledge helps to avoid unwelcome surprises.

Review your policy and verify that you have the right coverage for your home. For many homeowners, it will be necessary to have both homeowner and flood insurance. If you live in an area prone to flooding, you may want to check if you have the right coverage. If you rent, consider renters insurance, as it is one of the few ways to protect your belongings due to a natural disaster.

Also, take the time to read through all your deductibles. A deductible is the money you’re responsible for paying toward any claims. With the amount in mind, you might want to have that much set aside in your emergency savings account so it’s ready to withdraw after the storm.

Now might also be a good time to consider reinforcing your property’s damage mitigation measures. Protective fixtures like storm shutters and even certain types of windows can enhance a home’s ability to withstand hurricane-force winds. If you need to shore up additional funds for these additions, getting loans for home improvements might be available through your financial institution.

Preparedness is of vital importance during Hurricane Season. By taking actionable steps to securing your financial well-being, you are already working towards a meaningful recovery.