Fires . . . hurricanes. . . floods . . . earthquakes . . . tornadoes.... Natural or other disasters can strike suddenly, at any time, and anywhere. Your first priority, of course, would be to protect your family and your property.  But it's also important to protect against the financial consequences of a disaster.  A disaster can damage or destroy your property, force you to temporarily live somewhere else, cut the flow of wages and other income, or ruin valuable financial records.

Listed here are some simple, common sense steps you can take now.  Before you take any actions, however, you should be sure you have involved your family or friends whenever possible in decision making and planning.  You also may want the assistance of an advisor, such as a Certified Financial Planner, insurance agent, or similar financial professional.

The important thing is to begin planning now, before the unexpected becomes a harsh reality.

Protect your property

One of the first things to do is find out what disasters could strike where you live----fire, flood, earthquake, hurricane, or tornado, for example.  The following steps can help you avoid or reduce substantially the potential physical destruction to your property if you were to be hit with a disaster.  These steps can reduce your insurance costs, too.  For example, you could:

• Install smoke detectors to warn of an apartment or home fire.
• Elevate utilities to upper floor or attic.
• Clear surrounding bush to protect your home against wildfires.
• Anchor your house to the foundation, and anchor the roof to the main frame.
• Secure objects that could fall and cause damage in an earthquake, such as a bookcase or hot water heater.
• Install hurricane shutters on windows, and prepare plywood covers for glass doors.
• Cover windows, turn off utilities, or move possessions to a safer location if you have adequate warning of something like a hurricane or flood.
• If your home is in a high risk flood area, on a fault line, or threatened by coastal erosion, consider relocating.
• Have your house inspected by a building inspector or architect to find out what structural improvements could prevent or reduce major damage from disasters.
• If you haven't yet bought a house, you might take construction type into account. Frame houses tend to withstand some disasters, while brick homes hold up better in others.

If you're not sure where to start, you could contact your local fire department.  Fire departments will often make house calls to evaluate your property and make suggestions on how to improve safety.  In earthquake-prone areas, the local utility can be called upon to come to your location and show you how and where to shut off gas lines or how to elevate utilities to get them above a possible flood.

Conduct a household inventory

Inventory your household possessions by making a list of everything you own. If disaster strikes, this list could:

• Help you prove the value of what you owned if those possessions are damaged or destroyed.
• Make it more likely you'll receive a fast, fair payment from your insurance company for your losses.
• Provide documentation for tax deductions you claim for your losses.

To conduct a thorough home inventory:

• Record the location of the originals of all important financial and family documents, such as birth and marriage certificates, wills, deeds, tax returns, insurance policies, and stock and bond certificates.  Keep the originals in a safe place and store copies elsewhere.  You'll need accessible records for tax and insurance purposes.
• Make a visual or written record of your possessions.  If you don't own a camera or videotaping equipment (and can't borrow or rent it), buy an inventory booklet and fill it out, or make a simple list on notebook paper.  Ask your insurance agent if he or she can provide one.
• Go from room to room.  Describe each item, when you bought it, and how much it cost.  If you're photographing or videotaping, have someone open closet doors and hold up items.
• Record model and serial numbers.
• Include less expensive items, such as bath towels and clothes.  Their costs add up if you have to replace them.
• Be sure you include items in your attic, basement, and garage.
• Note the quality of building materials, particularly for such furnishings as oak doors or expensive plumbing fixtures.
• Photograph the exterior of your home.  Include the landscaping---that big tree in the front yard may not be insurable, but it does increase the value of your property for tax purposes.  Make special note of any improvements, such as a patio, fencing, or outbuildings.
• Photograph cars, boats, and recreational vehicles.
• Make copies of receipts and cancelled checks for more valuable items.
• Get professional appraisals of jewelry, collectibles, artwork, or other items that are difficult to value.  Update the appraisals every two to three years.
• Update your inventory list annually.

Sound like too much work? Computer software programs designed for such purposes can make the task much easier.  These programs are readily available in local computer stores.

Most important, once you have completed your inventory, leave a copy with relatives or friends, or in a safe deposit box.  Don't leave your only copy at home, where it might be destroyed.

Buy insurance

Even with adequate time to prepare for a disaster, you still may suffer significant, unavoidable damage to your property. That's when insurance for renters or homeowners can be a big help.  Yet, many people affected by recent disasters have been underinsured-or worse-not insured at all.  Homeowners insurance doesn't cover floods and some other major disasters.  Make sure you buy the insurance you need to protect against the perils you face.

If you own a home:

• Buy, at a minimum, full replacement or replacement cost coverage.  This means the structure can be replaced up to the limits specified in the policy.
• Investigate buying a guaranteed replacement cost policy.  When and where available, these policies can pay to rebuild your house, including improvements, at today's prices, regardless of the limits of the policy.
• Have your home periodically reappraised to be sure the policy reflects the real replacement cost.
• Update the policy to include any home improvements, such as basement refinishing.  Annual automatic increases may not be enough to cover these.
• Buy a policy that covers the replacement cost of your possessions.  Standard coverage only pays for the actual cash value (replacement cost discounted for age or use).
• Be very clear about what the policy will and will not cover, and how the deductibles work (the part you pay before the policy pays).
• Check government operated insurance pools if you find it difficult to obtain private coverage because of a recent disaster.  Premiums often run higher than market rates, but this is better than no coverage.
• Use your home inventory list to check that your policy's coverage matches the value of your possessions.

If you rent:

"If you're like most renters, you feel trapped within the walls of a house or apartment that doesn't feel like yours."

With a steady increase of crime in North America, home safety is a big issue these days. When leaving your home, practice the following advice - it could pay big, big dividends.

Going to the Market or out to Dinner? 

A residence which presents a "lived-in" appearance is a deterrent to burglars. Never leave notes that can inform a burglar that your house is unoccupied. Make certain all windows and doors are secured before departing. An empty garage advertises your absence, so close the doors.

When going out at night, leave one or more interior lights on and perhaps have a radio playing (TV sets should not be left unattended). Timers may be purchased that will turn lights on and off during your absence.

Do not leave door keys under flower pots or doormats, inside an unlocked mailbox, over the doorway, or in other obvious places.

When Planning Vacations or Prolonged Absence 

Discontinue milk, newspaper, and other deliveries by phone or in person ahead of time. Do not leave notes.  Arrange for lawn care and have someone remove advertising circulars and other debris regularly. On the other hand, several toys scattered about will create an impression of occupancy.

Notify the post office to forward your mail or have a trustworthy person pick it up daily. Apartment house tenants should also heed this hint since stuffed mail receptacles are a give away when no one is home.

Inform neighbours of your absence so they can be extra alert for suspicious persons. Leave a key with them so your place may be periodically inspected. Ask them to vary the positions of your shades and blinds.

When you leave, do not publicize your plans. Some burglars specialize in reading newspaper accounts of other people's vacation activities.

If you find a door or window has been forced or broken while you were away, DO NOT ENTER. The criminal may still be inside. Use a neighbour's phone immediately to summon police.

Do not touch anything or clean up if a crime has occurred. Preserve the scene until police inspect for evidence.

Always Remember to: 

1. Lock before you leave. 
2. Trust a neighbour with a key. 
3. Be a concerned neighbour - yourself.