Smart Money Recovery Tips After a Natural Disaster

Tsunamis​‍​‌‍​‍‌​‍​‌‍​‍‌ not only damage houses and the lives of people. Still, the second wave of chaos could be significantly worse than the financial crisis: no income is coming in, prices are rising, and perhaps these changes may not be temporary. 

Regardless of what has caused the crisis, hurricane, wildfire, earthquake, or flooding, it is far easier to remain calm and make a decision that helps you rebuild your finances faster.

This home reference book provides a comprehensive guide to everything you may need – from claims for insurance settlements to making money quickly and your future financial success.

Step 1 – Assess Immediate Financial Needs

Finally, stay stable and healthy, and don’t fear spreadsheets. First, determine which areas need the most money: 

• Giving your family food and water 
• A temporary home or a place to rest 
• Payment for drugs or health insurance 
• Practical applications and essential human communication channels

If your paycheck is delayed or you are unable to access your bank account, consider emergency financial solutions like Beem’s Everdraft™. This offering provides fast, interest-free funds to cover essential bills. 

This will enable you to avoid using credit cards or high-interest loans in the event of a financial shortage. 

Make it a point to first satisfy your immediate needs before planning for expensive repairs or replacements. It is easy to make impulse decisions that you will regret later when you are financially short.

Step 2 – Contact Financial Institutions and Creditors Early

The next step is to proceed ahead of the people who provide you with loans or services. Many financial institutions have disaster relief procedures in place, but these will be ineffective if the institutions involved are unaware of the situation.

Contact your banking institutions and inform them of the situation. As about:

• Temporary suspensions or extensions of payments
• It costs nothing to pay on time.
• Lending for emergencies with minimal or no interest
• Keeping your credit score high while you get better

Record the names of people present, the date, and any other pertinent citation. In case of issues with your credit or accounts, keep these papers close by so you can easily find them.   

Ensure you contact your home or auto loan lenders immediately to determine their expectations regarding insurance and payment requirements. Asking people for assistance generally results in their cooperation.

Read related blog: Beem Pass for Recovery—Quiet Financial Support for Life’s Toughest Moments

Step 3 – File Insurance Claims Promptly and Accurately

It is a matter of time here; the speed with which you submit your file is directly proportional to the time of recovery. Once you receive the green signal, make calls to your renters, flood, auto, and home insurance companies. 

Before submitting:

• Take pictures and videos of the damage on all sides.
• Document any damage with photographs/videos from all angles.
• Photographs and videos should be taken of the damage from every direction to assist in conveying the severity of the damage once you file your claim. 
• Begin itemising each damaged or broken product and determine its value.

When speaking with adjusters, it is essential always to tell the truth and present yourself clearly and in a well-organized manner. When speaking with adjusters, it is essential always to tell the truth and present oneself in a clear and well-organized manner. 

EXCERPT: Before discarding any property that was damaged, you should have first explored the damaged item.

Typically, the federal and state governments initiate programs in response to major disasters to assist individuals affected by them. 

Another essential thing to keep in mind is to stay in constant contact with your insurance company and maintain a record of all correspondence.

The second step is to seek a second opinion or hire a public adjuster in case you believe you have been underpaid on your insurance settlement.

Step 4 – Access Government and Relief Assistance Programs

The state and federal governments typically initiate programs in response to major disasters to assist those affected. It only takes a change of heart to know what resources you have and take the necessary action in time.

First things first:

1. FEMA emergency Relief Fund money to cover the damage repairs, personal property, or temporary housing.
2. The Small Business Administration (SBA) offers a program called the Disaster Loan program, which provides individuals with small loans at low interest rates to purchase homes, rent properties, and start a business. 
3. Food, housing, and utilities are covered by emergency funds and programs organized at the state and local government levels. Nonprofits at the regional level may require financial support or specific items to fulfill their mission. Ensure that you are fully organised with adequate paperwork.

Evidence of damages, income, insurance, as well as an authentic driver’s license, is presented in these papers. 

Evidence of damages, income, insurance, as well as an authentic driver’s license, is presented in these papers. Not having all the information is one of the most common reasons why applications are late. 

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Step 5 – Protect Your Credit and Avoid Financial Scams

Scammers are drawn to disaster areas, just like debris is drawn to flooding. Charities often target anxious individuals, “relief loan” companies, and fraudulent contractors.

For your personal safety:

1. Please call the proper FEMA, bank, and insurance company to confirm each offer. 
2. Do not give personal information, such as Social Security number, bank account number, or passwords, to anyone you do not know.
3. At the annual credit report, you have the right to get a free copy of your credit report each year to determine whether there are accounts that you have not opened.
4. You can also consider the option of short-term credit freezing to minimise the risk of fraud associated with opening new accounts.

It is essential to remember that there are no legitimate businesses that request payment up front before providing assistance.

Step 6 – Reassess Your Budget and Spending Priorities

The manner in which you earn a living can change after a disaster. What you may end up losing is work time, or you may end up spending more on repairs. To reflect your current financial situation, your financial plan needs to be updated.

I’ll demonstrate how:

1. Enhancing your personal finances involves listing your basic needs, which include housing, food, utilities, and medical care.
2. Think about cutting costs in luxuries, subscriptions, and memberships, or at least saving in such directions.
3. Be very careful with your emergency savings. Give rehabilitation and need satisfaction priority.
4. It is essential to keep track of every transaction that occurs over the next 60 to 90 days to identify any unnecessary spending. 

Initially, your weekly budget should be loose. Rather than being a perfectionist, be a flexible boss.

Step 7 – Rebuild Your Emergency Savings Fund

When the crisis has ended, ensure that the first thing you do is to restore your finances. Even a contribution of $10 or $25 per week will make a significant difference.

To earn a high interest rate, consider placing your money in a high-yield savings account and making automatic deposits, ensuring a consistent rate of savings.

Paying back Beem’s Everdraft™ or any other short-term emergency option you used during the crisis should be your priority as soon as your income stabilises. Restock your backup supplies as quickly as possible to be better prepared the next time.

Try the 1-1-1 technique if you’re struggling to perceive saving as a chore:

• A little goal, such as contributing $100 to a rainy-day fund
• One regular activity is the weekly transfer.
• Celebrate your achievements (milestones) 

Read related blog: Does Car Insurance Cover Natural Disasters

Step 8 – Review and Update Your Insurance and Legal Documents

Because you went through a crisis, now you fully understand what kind of protection you need. Start using your knowledge. 

• If you didn’t have a flood, earthquake, or wildfire insurance policy, then you would need an extra one in case of such an event. 
• Check that your deductibles are within your financial ​‍​‌‍​‍‌​‍​‌‍​‍‌capabilities.
• All of your insurance coverage, including property and life insurance, should be disclosed to donors.

Examine your legal documents as well as your insurance policy:

• Review your legal documents and insurance policy.
• Ensure that your will includes a statement regarding your heirs and all your possessions.
• Review the power of attorney paperwork you have.
• You should have easy access to all of your digital assets, including emergency contacts.

Imagination: Think of this as fortification, defence, and provision of your financial foundations against the worst.

Step 9 – Seek Professional Financial and Legal Guidance

Making decisions is not easy, but it is one of the most crucial steps in the recovery process after a calamity. It should be made more rigorous by requiring the completion of paperwork. Professionals can help with that.

After passing the exam, qualified financial advisors can:

• Take control of your debts!
• Support for paying insurance premiums
• Restore your credit by taking measured actions.
• Take an alternative approach to financial organisation.

However, you should speak with lawyers if you have any of the following:

• Insurance-related cases or denials of claims
• The drawbacks of being a property owner
• Fear of being evicted or facing foreclosure

Many professionals offer their services to victims of tragedies at a significantly discounted rate or for free. They might be provided by NGOs that help people with financial planning, community aid centres, or even your neighbourhood bar association.

Read related blog: Earthquake-proof your finances and prepare for natural disasters

Step 10 – Build a Long-Term Resilience Plan

Finally, apply what you have learned to get your finances in order. Even though you cannot predict the occurrence of a disaster, you can prepare against it.

To ensure that you can have a firmer financial future, consider the following:

1. Store valuable documents online and create electronic copies of them. This involves bank statements, identity documents, and insurance records.
2. Set a reminder in your calendar to check your emergency savings and insurance annually.
3. Assemble a grab-and-go emergency fund that contains money, copies of valuable documents, and significant phone numbers.
4. Conduct family financial disaster drills to ensure that each person is prepared in the event of communication failure.
5. Ensure that you have multiple sources of income. In case of a lack of your primary income, you can take up a second job, do homework, and make passive investments to keep you afloat.

It is better to come back and improve over time than to avoid any danger whatsoever.

Conclusion

It will take time to recover from a natural disaster or emergency, and the event will also have financial implications. You will need to plan for the future, be patient, and make informed decisions, taking it one step at a time.

When you are ready, setting priorities, securing assistance from agencies and the government, protecting your credit, and rebuilding your savings will help you regain control of your financial situation. 

Tools like Beem’s Everdraft™ can provide a little reprieve during difficult economic circumstances, helping you recover and return to your regular life. Download the app now!

The ultimate objective of financial recovery is to build something more resilient, intelligent, and capable of surviving future difficulties—not only to replace what has been lost, but also to prevent future losses.

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