1 Financial Emergency PreparednessThis presentation is designed to provide tools and strategies to make sure you are financially prepared to deal with an emergency or natural disaster. What would be the first thing you grab as you leave your home in an emergency? It isn’t likely to be your financial records, but those records are exactly what you will need to rebuild your life. Most of us have things stashed in several places in our homes. In an emergency, we aren’t likely to have the time to decide what we need to take and what we can leave. At the end of this program, you will know what you need to do now so that you will have what you need to take in an emergency or natural disaster situation. Developed by Dr. Joyce Cavanagh, Associate Professor and Extension Family Economics Specialist, Texas A&M AgriLife Extension Service, Revised May 2013. Educational programs of the Texas A&M AgriLife Extension Service are open to all people without regard to race, color, sex, disability, religion, age, or national origin. The Texas A&M University System, U.S. Department of Agriculture, and the County Commissioners Courts of Texas Cooperating

2 Topics for Discussion Pre-Disaster Post-DisasterEmergency Financial Records Kit Storing for Transporting Insurance Review Post-Disaster First Steps Insurance Claims We will be discussing several topics in this presentation – those that need to be dealt with pre-disaster and those that will be important to know immediately after a disaster or emergency. Pre-planning should include the development of a financial records kit, also called a ‘Grab and Go’ box, which should contain copies of financial accounts and papers. This box should be easily accessible in case of evacuation or quick exit from the house. It is also important to conduct regular insurance reviews, particularly of homeowner’s and auto policies to make sure adequate coverage is being carried in the event of damage to property. If a disaster or emergency were to happen, it’s also important to know what steps you should take immediately after the event. And, you should know how to begin the process of submitting an insurance claim to your insurance company if the loss is covered by your policy.

3 Emergency Financial Records KitBE PREPARED for QUICK Evacuation – Grab and Go! Identification for ALL family members Birth certificates Social Security cards Insurance cards Drivers’ licenses Passports Every household should have an emergency financial records kit accessible for quick evacuation. Some disasters, like a hurricane, allow a certain amount of time to gather possessions prior to evacuation. Others, like a fire or flash flood, may not provide any advance warning. In any event, you may not have enough time to search through papers and files to gather what you need. Putting together copies of all documents and records in one spot that can be grabbed as you go will ensure that you have what you need to recover from most disasters. You may develop a separate box or container for your financial records, or you may include them as part of your overall family emergency preparedness kit. The most important thing is for it to be accessible. Given the sensitive nature of the information included in your financial emergency kit, it should also be stored in a secure spot. So what do you put in this Grab and Go box or kit? You’ll want to be sure to refer to your copy of the handout: Preparing Your Evacuation Grab and Go Box. The most important documents are identification. ALL family members, including children, will need identification. Identification includes birth certificates, Social Security cards, insurance cards for health and automobile, drivers’ licenses, passports, etc. Original documents will always be the best option, but copies will be acceptable.

4 Emergency Financial Records KitCheckbook with enough checks and deposit slips for 1 month ATM cards, credit cards, debit cards Photo copy front and back of all cards CASH Amount needed depends on number of family members, ability to access cash You will also need access to your checking account. Consider keeping the last pack of checks in a new box in your financial grab and go kit. That way, you aren’t running around the house looking for your checkbook. Even if you won’t need to write a check, you are likely to need the account number and routing number for your account. This information is located on your checks. For those of you who don’t usually write checks but use your debit card to access the funds in your account, you will need this information. Your debit card number is not your checking account number. If you don’t have checks for your account, make sure to write the account and routing numbers down or include a copy of a bank statement in your Grab and Go Kit. ATM cards, credit cards, and debit cards. Making a photo of the front and back of each card will give you account numbers and contact information for each company. Make sure you know the PIN numbers without having to write them down. Make a note of your credit limits so you will know what you can spend in the event of an emergency. Cash. We have learned from recent disasters that people need more cash than they think! A widespread disaster with electrical outages may mean it will be several days before electricity is restored and you have access to bank funds again. In the meantime, you may only be able to use cash. The amount needed will depend on the size of your family and how prepared you are in advance. A minimum of several hundred dollars is not unrealistic.

5 Emergency Financial Records KitFinancial account information Account numbers, addresses, and phone numbers Copies of insurance declarations pages Copies of past tax returns (3 years) Deeds and titles to property and vehicles Copy of recent pay stub Safe deposit box key Inventory of contents Financial account information such as account numbers, names, addresses, and phone numbers of financial institutions and advisors you do business with are important to have. If you use financial software such as Quicken, you can create a listing and print out a copy for your kit. You can also use the Financial Records handout and fill in all of the necessary information for all of your financial accounts. This includes all bank accounts, credit card accounts, investment accounts, retirement accounts, loans and mortgages, Or, you can make copies of recent monthly or annual statements and keep the copies in your kit. It will also be helpful to make a copy of each of the Declarations pages of your insurance policies, particularly homeowner’s and automobile policies. The declarations page includes your insurance company and agent contact information, a summary of the coverage provided by the policy including your deductibles, and the amount of coverage you have. You will also need copies of your last three years of tax returns. This information is used for verifying income to determine eligibility for assistance programs in a widespread disaster. Copies of deeds and titles to property and vehicles you own and a copy of a recent pay stub should also be included in your kit. You will also want the key to your safe deposit box and an inventory of its contents. You may think that this is a lot of information to keep in your kit. Remember that in the event of a widespread disaster like a hurricane or flood, particularly one that is declared a federal disaster, the more information you are able to provide, the quicker you will receive any eligible assistance. Even if there is an isolated event like a fire where your home is destroyed, this information will prove invaluable.

6 Emergency Financial Records KitPersonal Property Inventory Digital photos, video Copies of receipts for large items Software programs Insurance Information Institute Copy of Will or Trust Medical records Immunization records Health history List of prescriptions and dosages Personal property inventory. The best option for a personal property inventory is a written record of your possessions including the date purchased, make, model and serial numbers, and purchase price. Many people see this inventory as such an overwhelming task that they never get it completed. The second best option is to complete a photo or video inventory. Take pictures or video of everything in your house. Open closets, drawers, and cabinets and take photos of the contents. If you are taking video, have a family member read off the model and serial numbers so you have that record. If you are taking photos, you can write this information on the back. If you are using a digital camera, take all photos on one storage medium and add this to your emergency kit. Take a photo of the model and serial number and/or the Instruction Manual page which records this information. Make this a family activity. Get the kids involved in helping. They can inventory their rooms. For expensive and high-end items, you will want to have a copy of the receipt and perhaps a copy of the instruction manual page with the model and serial number. Many financial software packages have a personal property inventory feature. There is also free software available from some insurance companies and the Insurance Information Institute for completing a household inventory. Additional records you will need include a copy of your will or trust agreement and a copy of health care directives for all of your family members. Include important medical records for family members such as immunization records, health history, and a list of prescriptions and dosages for each family member. You may also want to include a copy of your medical and optical prescriptions. If you have family pets, remember to include their medical and vaccination records in your kit. You will need them if you evacuate to a shelter.

7 Record Storage and TransportingEmergency supply kit – accessible but SECURE Paper files and copies Digitize! Scan documents Scan old photos Store on: CD/DVD External hard drive Flash drive Online storage Your financial grab and go box needs to be accessible but SECURE. Think of the information you have included in the kit. If someone were to steal it, they would have all the information they need to steal your identity. So, you don’t want your kit just laying around. Store it in a safe place where you can get to it easily. There are a variety of ways to store your records. The tried and true paper files and copies are the most common. An additional option is to store them digitally. By scanning records and photos into a computer file, you can then put them on a CD or DVD, copy them onto an external hard drive or flash drive, or store them ‘in the cloud’ using an online storage service. Many online and external storage devices can now be encrypted to protect the data if the device is lost or stolen. Online storage services are increasing in number. However, consumers should be cautious that they know who they are doing business with, what their security and privacy policy is, and what happens to your information if the company goes out of business. If you have gone paperless with some of your accounts and receive statements electronically or use online access, you will need to remember to add these electronic records to your kit.

8 Record Storage and TransportingFireproof home safe Safe deposit box Store documents and items in sealed plastic storage bags Multiple spots Emergency supply kit Relative or friend Office ‘In the Cloud’ If you are going to use a home safe, make sure it has a high heat rating. Many people have safes and after a fire discover that the heat rating was not high enough and items in their safe melted in the fire. Copies of items can also be kept in your safe deposit box in sealed plastic storage bags. It is important to keep copies of records in multiple locations. If a disaster occurs when no one is at home and your financial records kit is destroyed, having copies in multiple locations will mean you still have access to the information you need. In addition to your kit and safe deposit box, you may ask a relative or close friend to keep a copy. Ideally these would be people who do not live in the same geographic area so they would not be affected by the disaster. You could also keep copies at your office if you have access to a secure location. And we have already mentioned online storage services like Dropbox and iCloud .

9 Other Important Tasks Review insurance coverageSign up for direct deposit Arrange automatic bill payments Online banking There are other important tasks to complete in addition to compiling your financial records kit. Regularly review your insurance coverage, particularly homeowner’s and auto policies, to be sure you have enough coverage, the right coverage for risks you face, and that your deductibles are reasonable. Sign up for direct deposit. Direct deposit allows your employer to pay you any salary due regardless of where you are located. Arrange for automatic bill payments. In the event of an emergency or if you are unable to make the payments yourself, your payments will be made for you, eliminating any late payment fees. Sign up for online banking. Online banking allows you to continue to have access to your account and services no matter where you are located.

10 Insurance Review coverage annually Automobile Disability LifeComprehensive covers hail, wind, and water Disability Life Face value, beneficiaries Homeowner’s Flood Windstorm In addition to developing a financial records grab and go kit, it is important to regularly review your insurance coverage. Many people discover after a loss that they do not have the coverage that they thought they had. Automobile - Comprehensive coverage on your automobile will cover any damage to your vehicle from wind, hail, and flooding. If you do not have comprehensive and your vehicle is damaged from one of these perils, you will have no coverage. Disability – If you are hurt or disabled as a result of injury in a disaster, disability insurance may replace a portion of your income in the event you are unable to work. Life – Do you have dependents who rely on you for economic support? If so, do you have life insurance? What is the face value of your coverage? Have you been married, divorced, or widowed since you purchased the policy? Do you now have too much or too little insurance? Who are your beneficiaries? Are the beneficiaries current? These are some of the questions you should ask when reviewing your life insurance. Homeowners, flood, and windstorm – We will discuss these types of insurance in more detail.

11 Homeowner’s InsuranceBasic types of policies All risk – broad protection covering all perils unless specifically excluded in policy Named perils – narrower protection and covers only those perils stated in the policy Methods of replacing property Replacement cost – pays all necessary expenses to replace or repair property up to policy limits minus any deductible Actual cash value – cost to replace or repair property minus depreciation minus any deductible There are basically two types of homeowner’s policies. One is an all-risk policy, which covers all risks that are insurable unless they are specifically excluded from the policy. The second type is named perils, in which the policy specifically states the risks the policy covers. Property is replaced using one of two methods – replacement cost and actual cash value. If you have replacement cost coverage, you will receive the amount it will cost to replace the covered property minus your deductible. For example, if you have a television that costs $1000 to replace and you have a $500 deductible, the insurance company will subtract your $500 deductible from the $1000 replacement cost and pay you $500. If you have actual cash value coverage, the insurance company will take the cost to replace the property and depreciate it over the time you have owned it to get the current value. They then subtract your deductible to determine what, if anything, they will pay you. For example, your $1000 television was stolen, and you had actual cash value coverage. You have had the TV for 3 years, and the insurance company estimates its depreciated value at $300. Since your deductible is $500 and greater than the actual cash value, you will receive no payment from the insurance company. Most financial and insurance experts recommend purchasing replacement cost insurance. You may need to purchase a ‘rider’ or endorsement’ to get this coverage. Your insurance agent can assist you in getting the coverage you want.

12 Homeowner’s InsuranceTypes of coverage Dwelling – house and any outbuildings Personal property – household items Liability – injury to others or damage to their property (basic coverage $25,000) Medical payments – medical bills of those hurt on your property (basic coverage $500) Loss of use – additional living expenses while home is repaired (most common 20% of dwelling limits) Typical homeowner’s policies include a variety of coverages. These coverages include: The Dwelling which includes the house and any outbuildings, like a detached garage or storage shed; Personal Property coverage will replace your personal belongings. It is typically ½ of the coverage you have on the dwelling. So, if your home is insured for $150,000, your personal property coverage will be in the amount of $75,000. Liability protects you if you are sued and found responsible for someone else’s injury or property damage. Most policies include basic coverage of $25,000. You can increase the coverage for an additional premium. Medical payments coverage pays the medical bills of people injured on your property and some injuries that happen away from your home. The basic level of coverage is $500. Loss of use coverage provides payment for additional living expenses if your home is uninhabitable due to an insured peril. Most policies include % of the amount of your dwelling coverage.

13 Homeowner’s InsuranceApproved policy forms in Texas HO-A – limited cash value coverage on home and its contents for named perils only; standardized policy HO-A Amended – more extensive coverage than HO-A but less than HO-B; additional coverage specified through endorsements; coverage differs by company HO-B – replacement cost coverage on dwelling for most perils except those excluded in policy; standardized policy There are certain types of policies that are approved to be sold in the State of Texas. Some of these are standard policies where the coverage is the same from one company to another. Others are not standard policies, and the coverage will vary from one company to the next. It is important that consumers read the policy and ask questions if they do not understand the policy language. HO-A policies are standard policies with limited coverage. Coverage on the dwelling and its contents is cash value – NOT replacement cost – for named perils only. HO-A Amended policies provide more extensive coverage than an HO-A by including additional coverage through a policy endorsement for an additional premium. A common addition is to provide replacement cost of the dwelling. Replacement cost on the contents often requires an additional endorsement. HO-A Amended policies are NOT standardized, so coverage will vary by company. HO-B policies are becoming less common in Texas due to the broad coverage they provide. They are standardized policies.

14 Homeowner’s InsuranceHO-C – extensive coverage on dwelling for most perils, most expensive; standardized policy Other Approved Policies – varying levels of coverage; policies must be approved by Texas Department of Insurance (TDI); not standardized Renters – cash value coverage for belongings, liability protection, and extra living expenses Condominium – benefits of renters plus damage to improvements, additions and alterations to the condo unit HO-C policies provide extensive coverage for most perils. These policies are less common today and will be expensive. Other Approved policies – Many homeowners’ policies sold in Texas are Other Approved policies. An insurance company will design a policy with the perils it is willing to insure and submit it for approval to the Insurance Commissioner. These policies are NOT standardized, and coverage varies from one company to another. Consumers shopping for a policy between companies need to read the coverages and ask questions of agents if they do not understand what is included in the policy. Renter’s policies provide coverage for your belongings. The landlord will not provide coverage for your belongings. Standard coverage is cash value. Replacement coverage can be obtained through an endorsement. Condominium insurance offers coverage for the owner’s personal property and any improvements or additions to the unit. The condominium association’s policy covers the structure.

15 Homeowner’s InsuranceMobile homes – eligible for homeowner’s policy if without wheels and resting on blocks or a permanent foundation Most insured by a mobilowner’s policy Auto policy that covers mobile homes used as residences Extremely limited coverage Mobile homes in Texas are eligible for a homeowner’s policy if they are without wheels and resting on blocks or a foundation. Most mobile homes are covered under a mobilowner’s policy, which is a type of auto policy. Coverage is extremely limited.

16 Homeowner’s InsuranceMost policies cover losses caused by Fire and lightning Vandalism and malicious mischief Explosion Smoke Sudden and accidental water damage Aircraft & vehicles Theft Riot and civil commotion Windstorm, hurricane, and hail Most insurance companies are willing to cover these risks or perils. Your policy may or may not cover all of these depending on the type of policy you have and the endorsements you have purchased. These include: Fire and lightening; vandalism and malicious mischief, explosion, smoke, sudden and accidental water damage, aircraft and vehicles, theft, riot and civil commotion and Windstorm, hurricane and hail.

17 Homeowner’s InsuranceMost policies DO NOT cover losses by: FLOODING Earthquakes Termites, insects, rats or mice Freezing pipes when house vacant Wind or hail damage to trees and shrubs Water damage from continuous and repeated seepage Wear and tear or maintenance Losses if house vacant for 60 days or more These risks are NOT covered by homeowner’s policies: Flooding; earthquakes; termites, insects, rats or mice; freezing pipes when the home is vacant; wind or hail damage to trees and shrubs; water damage from continuous and repeated seepage; wear and tear or maintenance; and losses if the house has been vacant for 60 or more days.

18 Homeowner’s InsuranceKey points to look for: Policy limits Declarations Page – outlines coverage and limits Cash value vs replacement cost Dwelling Personal property Deductibles – likely 2% Hurricane, windstorm, and hail Other perils Endorsements Additional coverage – jewelry, electronics, replacement cost, liability Here are some key points to consider as you are shopping for or evaluating the homeowner’s insurance coverage you have: Policy limits – Do you have enough coverage to replace your home if you have a complete loss? What are the construction costs in your community? The declarations page of your policy will tell you what you currently have; consult your insurance agent to determine if you have sufficient coverage given your local market. An estimate of construction costs can be obtained by talking to local builders. Cash value vs replacement cost – Do you currently have replacement cost on both your dwelling and its contents? Check the policy to see what coverage is included and the declarations page for any endorsements that would increase your coverage to replacement cost. It is recommended that you purchase replacement cost insurance. The increase in premium is well worth it in the event of a large loss. Deductibles – Higher deductibles have been recommended as a way to cover the large losses you might experience and to lower your premiums. Companies are now splitting the deductible between hurricane, windstorm and hail, and Other perils. The deductible may be higher on the hurricane, windstorm, and hail than the other perils depending on where you live in Texas. Areas prone to wind and hail storms are likely to have a higher minimum deductible. Endorsements – Any endorsements you have on your policy will be listed on your declarations page. Endorsements allow you to buy additional coverage other than what is included in your policy for an additional premium amount. Common endorsements include replacement cost coverage, jewelry, electronics, and liability.

19 Homeowner’s InsuranceHomeowner Action Steps Review homeowner’s policy Follow-up with insurance agent There are several steps homeowner’s should take to insure they have adequate insurance. The first is to read your policy to determine what it covers and the dollar limits of that coverage. If there is anything in your policy that you do not understand, ask your agent for clarification and explanation. Once you know what coverage you already have, you should determine if this is sufficient for the risks you face and if you have the appropriate amount of coverage (dollar limits). You may want to include your insurance agent in this discussion. His/her guidance in evaluating coverage types and limits can be invaluable. If you need more information about homeowner’s insurance, the Texas Department of Insurance has numerous resources available at their website From this site you can obtain information on understanding insurance, shopping for insurance – including policy comparisons, and rate guides.

20 Flood Insurance Flooding is most common natural disaster~60% of homes in South in high-risk areas have flood insurance; only 1% outside of high- risk areas Coverage provided through FEMA’s National Flood Insurance Program Policies subsidized through government; sold and serviced by regular insurance agents While the most common natural disaster in the U.S. is flooding, only about 60% of homes in the South located in high-risk areas have flood insurance. Flooding is NOT a covered peril on homeowner’s policies. Homeowners can obtain flood insurance through the National Flood Insurance Program. Policies are sold and serviced by regular insurance companies. Your homeowner’s insurance agent or company can assist you in purchasing flood insurance.

21 Flood Insurance Maximum coverage NO additional living expense coverage$250,000 on structure $100,000 on contents Sold separately NO additional living expense coverage NO replacement cost coverage Not effective for 30 days from purchase High deductibles are common (2%) The maximum amount of flood insurance coverage available is $250,000 on the structure and $100,000 on the contents. It is important to know that these coverages are sold separately. Financial institutions often require homeowners living in high-risk areas to purchase flood insurance in order to get a mortgage. They only require coverage on the structure. Remember to purchase coverage for your structure and its contents. Other important aspects to know about the flood insurance program is that there is no coverage for additional living expenses and no replacement cost. Coverage is for actual cash value. In addition, coverage is not effective for 30 days from the date of purchase. So, if you live along the coast, don’t wait for a storm to enter the Gulf of Mexico to purchase flood insurance! Purchase your insurance before the storm season begins. More information on the National Flood Insurance Program is available at

22 Windstorm Insurance Wind and hail coverage excluded from some homeowner’s policies in 14 coastal counties and part of Harris County on Galveston Bay Texas Windstorm Insurance Association (TWIA) – provides wind and hail coverage to these residents – New construction, additions, and renovations of property require windstorm inspections during the construction process Windstorm and hail coverage is not available as part of a homeowner’s policy in certain Texas counties along the coast. This includes the 14 coastal counties and part of Harris County on Galveston Bay. The Texas Windstorm Insurance Association provides this coverage to those residents. More information can be obtained at There are also requirements for inspections of new construction and renovations for homes in this area in order to obtain or maintain coverage.

23 Post Disaster First Steps Take stock – and pictures!!Document damage BEFORE taking any action to prevent additional loss/damage. Call insurance agent or company to report damage. Follow-up with a WRITTEN claim. Do not make permanent repairs until an adjuster has inspected damage. Maintain a Repair Log with a record of repairs, expenses, and ALL receipts. Remember that temporary repairs are covered by your final settlement. Keep a log of additional living expenses and receipts. In the event of damage to your property from a disaster or other covered peril, the first step is to take stock of the damage and take pictures. Document the damage before you take any temporary steps to protect the property from any further damage. You will need to call your insurance agent to report the damage, but be sure to follow up with a written claim to maintain your rights under Texas law. Permanent repairs should not occur until an adjuster has inspected the damage. Maintain a repair log to record all events and expenses throughout the repair. This log will help you remember details and conversations you may forget when dealing with the overwhelming task of recovering from a disaster. In addition to recording the repairs and expenses, record any conversation you have with insurance adjusters or agents, their names, the date and time, their contact information (business cards are great!), a summary of what they told you and actions you took. While it is important to make any temporary repairs necessary to protect against further damage, remember that the cost of these repairs will be part of your final insurance settlement. Don’t overspend on these temporary repairs. If your home is uninhabitable, a log of all of your additional living expenses and receipts will be helpful in your claim for ‘Additional Living Expense’ reimbursement.

24 Post Disaster Maintain a communications log of all conversations related to your loss. Date, time, company, person you spoke with, telephone number and extension, summary of the conversation (What did they say? What did they agree to? What did you say? What did you agree to? If no answer – summarize your message). This communications log is the only way you will remember things and keep them straight. Keep a calendar. Note when you need to follow-up with calls, visits, filing deadlines, etc. Mark scheduled appointments. Maintain a communications log to help document conversations related to the loss. Include the date, time, company, name of the person you spoke with, telephone number and extension, summary of the conversation including what they said, what you said, what they agreed to. If there was no answer, include a summary of the message you left. As you move through the recovery process, this log will help you to remember details and keep everything straight. It will also be good documentation if you have any problems later on. Keeping a paper calendar will also be a useful tool through the recovery process. There will be numerous appointments and deadlines to keep track of and a calendar will help.

25 Post Disaster NEVER give away original documents – always send a copy.Take more photos! Take photos of every step in cleanup and repair. Download regularly to a CD or flash drive. Make a list of everything you throw away – and take pictures!! Always keep your original documents – when necessary, provide others with a copy. Make sure you take pictures throughout the repair process. Having more photos than you need is much better than not having enough or the specific shot that you are asked for. Record what you throw away. These items are personal belongings that will need to be replaced. Photos and a list will serve as documentation that you did own the items.

26 TAKE ACTION!! It’s never too early to take action to become better prepared for a disaster! Start today to Develop a financial Grab and Go Box Compile a personal property inventory Review and update insurance coverage While you may seem overwhelmed by the tasks that are necessary for adequate disaster preparation, it’s never too early to start! Start today to develop your grab and go box, compile a personal property inventory and review and update insurance coverage. No one wants to be in a position to use these tools, but in the event of a disaster – large or small – you will be happy to have them!

27 Additional Resources Texas AgriLife Extension Service Texas Department of Insurance National Flood Insurance Program Insurance Information Institute These websites can provide additional information.