Natural disasters come and go in the news, but the actual aftermath lingers long after the TV cameras go away. Not long after Hurricane Harvey hammered the South Texas coast, the administrator of the Federal Emergency Management Agency, Brock Long, said on CNN, “FEMA is going to be there for years.”
At the time of this writing, with Hurricane Irma storming the country, it’s unfortunately looking like FEMA will also be pretty busy in Florida and possibly in other parts of the U.S.
Unfortunately, that is a natural disaster’s modus operandi. If your home and community is hit by a hurricane, tornado, wildfire, earthquake — the weather moves on, but the destruction doesn’t, which means the financial headaches are just starting. If you’re cleaning up after a natural disaster and wondering what’s in store, some of what you’ll want to be ready for includes the following.
[See: 10 Terms First-Time Homebuyers Must Know.]
Insurance headaches. Probably the first thing you’ll do after the dust settles is contact your insurance company. It’s certainly what the industry would prefer you do, says John Espenschied, the owner of Insurance Brokers Group, an insurance agency in St. Charles, Missouri.
“Our No. 1 recommendation after a natural disaster, such as a flood, is get your claim filed as soon as possible,” he says. “With literally hundreds of thousands of claims being filed, you want to be at the front of the line and not at the back waiting one, two or more years for repairs.”
And it will help if you document everything, Espenschied recommends, so you can help prove the destruction is as bad as you say, although, yes, an insurance adjuster will likely be making a visit to your home sooner or later (probably later, if there’s been a lot of destruction in your neighborhood). “Take as many photos as you can, and even better, videos,” he says.
Espenschied also suggests lining up contractors after you hang up the phone. The goal is to get work done on your home before any damage worsens — especially if there’s been water damage.
“Insurance companies will welcome any work that will minimize additional mold damage,” Espenschied says.
But while lining up contractors as early as possible is a good idea, don’t pay for work before you have approval from your insurance company, says Flavia Berys, a real estate broker and attorney in San Diego.
“If you contact your insurance company after you have already done some of the work yourself out of pocket, the insurance company might deny the claim or make you jump through complicated hoops because you didn’t use their repair company or have them evaluate the damage prior to [when] the remediation began,” she says.
Berys also points out that some homeowners might be tempted to pay for some repairs if the damage seems minimal. But she says that you might end up spending money to fix something and then discover the damage is even more than you thought — and, again, getting an insurance company involved after you’ve been working on repairs often gives the insurance company an excuse to not get involved at all.
[See: 25 Ways to Fix Your Finances Fast.]
Waiting for government financial assistance headaches. If you’re seeking grants, when it comes to getting your money, it’s probably best to assume the worst and hope for the best.
Still, it shouldn’t take forever. According to the FEMA website, after you submit an application for financial assistance to repair damage to your home, a FEMA-contracted inspector should contact you within 10 days of registering. If FEMA approves your financial request, you should get a check within seven to 10 days of the approval and sooner if you’re doing a direct deposit.
So if things go perfectly, you may be looking at 20 days or less. If they don’t go perfectly, well, you could be waiting at the mailbox or staring at an empty bank account for quite awhile.
“Be vigilant and proactive,” says Donna Childs, who owns Prisere LLC, a Warwick, Rhode Island-based company that consults businesses on disaster prevention. She is also the author of the book, “Prepare for the Worst, Plan for the Best: Disaster Preparedness and Recovery for Small Businesses.”
In other words — don’t assume any money is coming fast and then be disappointed later. Do what you can now to stave off problems.
“Contact your creditors and see if you can raise your credit limits and waive fees. … Many banks will be sympathetic,” Childs says.
But you have to work with them and let them know your situation.
Scam headaches. Con artists are infamous for appearing after a storm. They know homeowners are in a daze and looking for help.
“There will be plenty of scam artists who will be trying to prey on the weak and vulnerable, so don’t be one of them. Anyone claiming to be a contractor should be licensed and bonded and be willing to show you documents establishing those claims,” says Justin Lavelle, chief communications officer at BeenVerified, a website that specializes in background checks.
He also points out that home inspectors and insurance adjusters don’t ask for money, and so if any do, something is up. He also says that you should be wary of any charity representative collecting money, especially if they’re pushy.
“If you have any concern, simply contact the charity directly to make your donation,” Lavelle says.
[See: How to Talk to Millennials About Money.]
Headaches that surface later. Nobody’s suggesting that you look at life from “the glass is half empty” vantage point. But after a natural disaster, Berys recommends taking the long view and recognizing that getting past this may take time. She was living on the island of Guam in 2002 with a significant other who was stationed there when Typhoon Chataan blew through, devastating the island and region.
For almost two months, Berys says that their rented house didn’t have electricity or running water. When that was fixed, however, their problems weren’t over. About the time the electricity and water came back, something else showed up, as well.
“Without air conditioning, the intense humidity and all of the rain water that had seeped in through broken windows during the typhoon caused a major mold problem,” she says.
Berys and her significant other moved out as soon as they were able. So after a natural disaster, your financial headaches may be just beginning, but they can generally be treated with paperwork, patience and, yes, a little ibuprofen or aspirin probably wouldn’t hurt.
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How to Manage the Long-Term Financial Aftermath of a Natural Disaster originally appeared on usnews.com
