SaverLife member Alizha knows climate change could impact her family at any time. They live in a hurricane zone that’s prone to flooding. But with a tight budget and shifting work hours, Alizha doesn’t have the time or money to prepare for a potential flood.

Alizha doesn’t even know how they’ll respond to a weather event until it actually happens. The money they have on hand will determine whether they evacuate or stay put in their apartment. And if they don’t have savings to relocate, Alizha says, “we’re going to get inside the tub, put a blanket over us, and hope we just float.”

If you’re in a situation similar to Alizha, there are things you can do now to protect yourself and your finances if you’re impacted by an extreme weather event.

Here are 5 ways that you can prepare for a climate disaster and protect your financial health:

Gather Important Documents

One thing you can do to protect your finances before a climate disaster is to gather all your important documents and information in one place. Make sure to include information about your insurance policies (insurance company name, contact person, phone number, policy number). Having this information on hand will speed up the process of filing any claims you may have because of a disaster. 

You’ll also want to gather information about your bank and credit card accounts. Be sure to include which banks or credit institutions you use and the contact information for each. If there are problems with your accounts, you need to report cards lost or stolen, or you need help accessing your money, having this information ready will help.

Finally, create a home inventory. This is a list of items you own, their descriptions, and their values. A home inventory is helpful if you need to file insurance claims as it lets you know exactly what you have and the value of anything that might have been damaged. Be sure to include pictures or videos of the items as well. This way, you can show their state prior to the disaster as you file your claims.

As you prepare for extreme weather, it’s important to keep your documents and information in a secure place that you can access quickly if there’s any emergency.   If you can, store them in a home safe or lock box so they’re ready when you need them. 

Prepare for Power Outages

Often, climate disasters cause disruptions to the power grid. This can result in short- or long-term power outages as companies work to get service restored. You can prepare for power outages by: 

Stocking up on batteries, flashlights, and candles — If the power is out, you may literally find yourself in the dark. Having batteries and flashlights, as well as candles and matches or a lighter on hand, can help with this. Be sure that you keep these supplies somewhere you can access them but where they won’t get damaged by water in a disaster situation.

Keep nonperishable food on hand. If the power goes out, you’ll lose both refrigeration and cooking capabilities. This means that the food in your fridge will likely spoil, and you’ll need to purchase additional food to replace it. It also means that your stove and microwave might not work, and you’ll need to rely on other food options, like delivery or nonperishables. 

 As you’re preparing for a natural disaster, stock up on a week’s worth of nonperishable foods for your family. Things like granola bars, protein bars, bread with peanut butter, dried fruit, nuts, crackers, canned fruit (with a can opener), and dry cereal will ensure you can feed your family while you wait for power to be restored. If you have infants who need formula, keep extra on hand in case of emergencies. 

Having an emergency supply of nonperishable food will also help you save a bit of money. After a disaster, stores see increased demand for these items. This increase in demand often leads to price increases, especially if supplies are limited. 

Finally, as you prepare for a climate disaster, consider stocking up on bottled water. After a climate disaster,  tap water may be unsafe to drink, or the supply may be cut off due to damage to the system. Having bottled water on hand will give you and your family clean water to drink while systems are restored. It will also save you money after the disaster as prices of bottled water typically rise.

Build Up Emergency Savings

One of the best things you can do to protect your finances before a climate disaster is to build an emergency fund, even if you just add a little bit at a time.

While it’s good to have an emergency fund for everyday emergencies, it is critical to have one in the case of climate disasters. An emergency fund helps you cover immediate expenses for shelter or repairs. It can also fill the gap created by lost income if your job is impacted by the disaster. An emergency fund can also help you cover unexpected costs like childcare if schools close and you still need to work.

The best way to build your emergency fund is to put some money into a savings account each month. This savings account can be at your regular bank, or you can look into a High Yield Savings Account (HYSA), so your money earns more interest. Just be sure you understand the terms and conditions of any account you choose. 

Even if your budget is tight, setting aside a small amount each month can help in an emergency. Start by aiming to build an emergency fund of $500 or $1,000. Then aim to grow it to one to three months of your necessary expenses. SaverLife members have shared that, on average, they would need at least $3,000 to recover from a weather-related event.

If you know a climate disaster is headed your way, it can be helpful to take some of your emergency money out in cash. If power or other systems are down after the disaster, you’ll likely need some cash to pay for necessary goods and services. Be sure to keep your cash safe and don’t withdraw your entire emergency fund.

Take Low- or No-Cost Prevention Measures

When it comes to climate disasters, sometimes you might be taken by surprise. But, if you do have warning, or if you live in an area that’s prone to disasters at certain times of the year, you can often take low or no-cost preventative measures to lessen the financial impact of the disaster and make your property safer. 

If you live somewhere with tornados, hurricanes, or windstorms, securing your outdoor furniture and property can lessen damage from things getting blown around. You may also be able to board up your windows to prevent them from breaking. If you live in an area that’s prone to wildfires, clearing brush and trees from the area around your house can help keep your home safer. 

Think critically about the disasters that may happen in your area. Then determine the best steps you can take to keep your property safe. 

Review Your Insurance Policies

Finally, to protect yourself financially before a climate disaster, make sure you’re properly insured. Take time to review your insurance policies so you know what is covered, how to contact the company, and what you need to do to file a claim. You can even speak to your policy provider to be sure your coverage is adequate and up to date. This will give you peace of mind for any disasters that might come your way.

After the Disaster

Being prepared for a climate disaster can help you protect yourself, your loved ones, and your financial health. But it’s also important to know what to do after disaster strikes, too. 

First, be sure that you and your loved ones are safe in your immediate surroundings. Then take the necessary steps to file a claim with your insurance company. Be sure that as you call your insurance company, or other financial service providers, you don’t give out account information via text or to individuals if you aren’t sure who they work for. Identity theft is common in the wake of disasters. 

inally, if you need help, look for government and local assistance options in your area. A good resource to start with is the Federal Emergency Management Agency (FEMA).

Kimbree Redburn

Kimbree Redburn is an Accredited Financial Counselor® with a background in economic development. She works with her clients to help them understand their financial options and make money decisions with confidence. She believes that financial education gives people a chance to build a better life.