- October 5, 2017
- in Fire Damage Restoration
- by admin
- 253
- 0
If you haven’t lost your belongings and/or home to a fire and are just reading to stay prepared, kudos to you. Count your blessings. There are a few steps you can take now for the “just in case” security that will ensure you’re in good financial standing should disaster strike.
If you have recently lost everything to a fire, don’t stress. Once you’ve started to recover emotionally, you can begin considering how you’re going to recover financially from this disaster.
When it comes to maintaining your family’s financial security, there is no such thing as being overprepared. Take the following steps to ensure you’ll be able to bounce back should you lose your home and/or your belongings to a fire.
I was fortunate enough to be required to carry renters insurance, which will cover some of my losses. Others in this situation aren’t so lucky.
I was not, however, as prepared as I should have been. I carried the minimum coverage my landlord required and didn’t think twice about how much I should really be covered for. My advice? Don’t settle for minimum coverage.
Spend some time considering what your possessions are really worth — and not just big-ticket items like furniture and electronics. Here are some items I didn’t even consider until I’d lost them:
Once you’ve calculated how much your possessions are worth (and, if you own your home, how much coverage you’ll need for your house as well), pick a plan that will cover those costs.
My other advice? Read the policy details before signing. You’ll want to know what is actually covered under your policy. The big mistake I made was not knowing the difference between replacement cost value (RCV) and actual cash value (ACV).
RCV means the insurance company will give you what it actually costs to replace your refrigerator; ACV means it will only shell out what your 4-year-old fridge is worth now. Guess which one I had.
In today’s world, it can be difficult to put aside money for anything. With IRAs, 529 plans and regular savings, who has the change to spare for an emergency fund?
Don’t neglect building your emergency fund. You never know when you’ll need it.
But how much should you save? It depends on your personal situation. Forbes breaks it down into simple terms:
Your emergency fund doesn’t have to happen overnight, but it is definitely something you should be saving toward. It’s not as glamorous as saving for a trip to Ireland or a new car, but it could make or break you in the event of a fire or another natural disaster.
Unfortunately, a fire department responds to a house fire every 23 seconds, according to the National Fire Protection Association. If you’re the recent victim of a fire, take the time you need to recover emotionally, but stay disciplined so that you can quickly begin to rebuild financially.
If you have renters or homeowners insurance, contact your agent immediately. The Red Cross has a good list of to-dos to make sure you receive as much money back as you can:
If you’ve been saving for an emergency, now is the time to make a withdrawal. If all goes well, you’ll be able to replenish some of those savings with insurance money down the road. Just be prepared to wait a few months, because the reimbursement process can be lengthy.
I’m not the type who is comfortable asking for or taking money from friends and family, but a real crisis like a fire can change your perspective. I am immensely grateful to the friends, family, co-workers, and strangers who donated money through GoFundMe or just by sending checks and gift cards, who held bake sales and fundraisers, and who donated their furniture or even just their time.
Whatever someone is offering, don’t be ashamed to say yes if you need it. Just don’t forget to say thank you — and be ready to pay it forward to someone else in need once you’re back on your feet.
A fire or another unexpected disaster can be devastating, but it doesn’t have to ruin you financially. Start preparing for the worst now — and if the worst has already happened, step into action mode and begin rebuilding your finances today.