Are Your Finances Hurricane-Ready? Here's How to Know

Make sure you're truly prepared.

Hurricane Ian has officially made landfall in Florida, and at this point, the most residents in its path can do is hunker down and hope the worst of the storm is short-lived. But the emergence of Ian does raise the question of hurricane readiness -- and not just from a logistical perspective.

Many people who live in hurricane-prone areas know full well that it's important to install storm shutters and have emergency supplies on hand, like food, water, and batteries, in case power outages strike. But some people don't realize they should also be taking steps to ensure they're hurricane-ready from a financial standpoint. If you're not sure about the latter, here are some questions to ask yourself.

1. Do I have access to essential documents?

If a storm hits your home, it could cause extensive damage, resulting in some key financial documents being destroyed. It's important to make sure you have access to those documents ahead of a storm, whether by storing copies in a safe deposit box at your local bank or by keeping copies stored electronically. 

Some of the documents you'll need access to are your:

• Passports
• Birth certificates
• Social Security cards
• Tax records
• Titles and deeds to a home
• Wills
• Insurance policies

The latter is really important. If your home sustains damage during a storm, you'll need to have access to your policy details so you can go about the process of filing a homeowners insurance claim.

2. Do I have the right insurance coverage?

If you live in a storm-prone area, a standard homeowners insurance policy may not suffice. Rather, you may need to get specific hurricane or flood insurance to protect yourself financially in the event of damage. It's always a good idea to assess your coverage ahead of a storm and make sure it's adequate. 

3. Do I have money set aside for emergencies?

As a general rule, it's a good idea to have enough money in your savings account to cover a minimum of three months of essential living expenses. If you live in a storm-prone area, you may want to aim even higher. 

Many people assume they'll dip into their emergency savings due to factors like job loss or medical bills. But you may need to dip in if a storm upends your life. 

You may, for example, need to spend a lot of extra money stocking up on groceries in case the power goes out for days and you can't access the store (in this case, non-perishables are probably your best bet). You might also need to pay for temporary lodging if you decide to flee your area ahead of a storm. All of these things cost money, so the more prepared you are, the better equipped you'll be to deal with a storm. 

Keep in mind that if your area is hard-hit in a hurricane and power outages are extensive, you may not be able to use a credit card to buy food to restock your fridge, and ATMs may be out of commission. And so it's a good idea to keep extra cash on hand. 

Are you financially ready to weather a storm?

Living through a hurricane or major storm can be scary enough, so the last thing you need is a host of financial worries to make a tough situation even worse. If you're not in the path of Ian but live someplace known to get hit by major weather events, let this serve as your wakeup call to get your financial house in order. Doing so could spare you a world of stress during an otherwise trying time.