How to Protect Your Finances After a Natural Disaster
Navigating the road to recovery after a natural disaster like a hurricane, tornado, or flood can feel overwhelming. Once you have ensured that you and your family are safe, you will want to take steps to protect your finances and your property, so you have the resources you need to rebuild and recover. Here are steps that you can take right away to help regain financial peace of mind after a natural disaster.
File Insurance Claims and Apply for Assistance
Start first by contacting the resources available to help you rebuild and repair.
- Contact Your Insurance Company: If your home, car, or other property was damaged during a natural disaster, you will want to get the claims process underway. Take pictures of any damage to help assist with your claim. Your policy may require you to file a claim within a certain time period after a natural disaster or other incident, so this should be a top priority.
- Apply for Assistance: Government assistance may be available that can help you pay for repairs. FEMA offers assistance for some types of damage not covered by insurance if you are in a presidentially declared disaster area. Apply online at www.disasterassistance.gov or call (800) 621-3362. State agencies may also provide additional assistance—you can search for one that applies to you here.
- Contact Utility Companies: If you cannot live in your home due to current damage related to a natural disaster, suspend your utilities so you are not paying for services that you are not using. This can give you additional funds for other priorities.
Explore Hardship Assistance for Loans
While you are still financially responsible for your payments in the wake of a natural disaster, there may be options to help you if you contact your lenders or government agencies.
- Mortgage: Your mortgage provider may offer relief to members impacted by a natural disaster that can help in the short-term. While you are still responsible for mortgage payments if your home is damaged, there may be options for financial assistance, like forbearance or repayment plans. Housing counseling agencies through the U.S. Department of Housing and Urban Development can also help you understand your options.
- Auto Loan: If a natural disaster impacts your ability to keep up with your car payments, contact your auto lender to see if they may be able to help through a hardship or forbearance program.
- Student Loans: You may qualify for a 90-day disaster forbearance for federal student loans if you live or work in a federally declared disaster area. Contact your student loan servicer to see if you qualify.
- Credit Cards: If you are unable to make your credit card payments due to the disaster, contact your credit card companies before your next payment date. Some companies may waive interest and late fees, while others may allow you to pause or take more time in between payments.
Continue to Plan for the Future
While it may feel difficult to focus on the future, keeping on top of your finances now can help you stay on track and avoid impacting your financial health.
- Budget and Set Priorities: Natural disasters could affect your income and your ability to meet your monthly financial obligations. Take a look at your bills and make a plan to avoid missing payments or accumulating debt that may impact you in the future. For CU1 members, Digital Banking offers helpful budgeting tools to help you best understand your financial situation.
- Monitor Your Credit: If you have worked with your lenders to accept forbearance or delay payments, be sure these are not misreported to your credit report as a delinquent or missed payment. You can get a free credit report from each of the three nationwide credit companies once every 12 months. And Credit Union 1 members are able to monitor their credit through Digital Banking with Savvy Money Credit Score. Be sure to check for any errors and dispute accurate information if you see it.
Navigating the aftermath of a natural disaster is challenging, and Credit Union 1 is here to help. If we can assist with any questions about your CU1 accounts during this time, please contact your local branch or call 800.252.6950.
Source: Consumer Financial Protection Bureau