Getting back on your feet after a storm

With the recent images of destruction caused by Hurricane Ike, it is easy to see that Mother Nature can be cruel at times. Thousands of dollars are spent due to damage inflicted by natural disasters - roads, homes and businesses all have to be rebuilt. Fortunately, there is assistance available.

Short term disaster relief is always available through organizations like the Salvation Army, American Red Cross and FEMA, also known as the Federal Emergency Management Agency. Local disaster coalition firms and community agencies may also be available for resources after a storm. These organizations provide a quick response to emergency situations caused by disasters like Hurricane Ike. Teams are typically sent after hurricanes, tornados, fires or floods. They often provide immediate needs like temporary shelter, food, water, basic supplies, as well as emotional and spiritual help.

Price gouging is becoming a huge concern to community evacuees before a storm. States like Florida have passed laws that forbid selling emergency goods, such as food, ice, water and fuel, for amounts that exceed the average price at least 30 days before a state of emergency has been announced. The law also applies to building materials, lodging or storage that’s usually needed after storm devastation. The best way to avoid being gouged is to purchase supplies before any warning a storm. Be prepared before hand by having food, bottled water, flashlights, extra batteries and first aid kit readily available if a state of emergency is declared. Store these items away in a garage or an extra closet.

Insurance policies usually assist in the rebuilding of homes after a storm. Homeowners should be sure to understand their policy before a disaster strikes. Coverage for house contents, such as furnishings and décor were once required in policy purchases. But these days, homeowners have the option to waive this type of coverage. Waiving the coverage can reduce monthly premium costs by 10% or more, but homeowners need to be prepared to cover the costs for these items when disaster strikes.

Not all policy benefits are created equal. In a lot of cases, insurance companies won’t pay extra to replace small repairs, such as window screens, unless the insured household decides to purchase optional coverage. Other insurance companies will cap the coverage or have varying rules depending on the state and county where the policy was purchased. Law and ordinance coverage should be considered when purchasing a policy. This coverage type is very important, because it will pay the cost to rebuild your home according to the most current building codes.
When making your claim, be prepared to pay a deductible, which can usually range from $500 to $1,000. Most insurance policies offer a hurricane deductible of $500 - 2%, 5% or 10%. Some state laws fix the hurricane deductible per season, not per storm. In case of a second event, this law allows insurers to require the second deductible to be fulfilled.

For the first time, insurance companies are being allowed to offer deductibles beyond above 10%. But, before making the decision to go for a higher deductible, take a look at your budget to calculate whether you could make repairs yourself or pick up the cost of a large deductible in the event a natural disaster occurs. For example, according to a 15% deductible policy, you would need to have an extra $15,000 to cover the repairs on your home if it endured $100,000 worth of damage during a storm. Once you’ve received your claim check and you’re not satisfied with the amount you received for storm damage, you are entitled to dispute the claim in a confidential, state-sanctioned mediation program.

Financial loose ends can also be a burden after a storm. Loss of work usually means credit card balances piling up, forgotten medical bills or car payments that need to be paid. Places where you can turn when you are in need quick emergency cash needs include lenders available online who make it easy to apply for emergency cash. Often, all you need to have available is your driver’s license and answers to a few personal questions. Any information that online lenders collect is always kept secure. The rates for some types of online loans can seem high, but when the loan is only needed for just a couple of weeks to get you by until your insurance claim check arrives - these lenders offer short term financial relief.