Money Management Newsletter
Crisis Management Series
Consumer Tips For Dealing With Disaster
Dr. Jo Turner, Professor, Family and Consumer Economics
Disaster is a part of life. When disaster occurs the following 11 tips can help you keep your balance and protect your future.
Tip 1: Don't Panic! Stay in control.
Remember you have survived other disasters and you probably will also survive this one. As calmly as possible assess the situation and take appropriate action.
Tip 2: Practice prudent consumer behavior.
Use good judgment in making decisions. Many people lose money by turning their investments into cash in a panic and buying high-priced "so called" survival and protection items. Currently there are some good bargains in the stock market if you choose investments wisely. Panic buying can be costly. Before buying items such as a gas mask, a year's supply of food, or a gun in response to a specific risk or emergency ask yourself, "Just when, where and how will I use this purchase? How will it help me? And how will I store it?"
Tip 3: Avoid con artist and gougers.
Recently it was reported that gasoline tripled in price in one day. During hurricanes or tornadoes the price of items from ice to generators may more than triple. Watch out for these opportunists and choose not to be a victim.
Tip 4: Be a good citizen.
Report con artist, gougers and anyone who behaves in a suspect manner to the appropriate authority, such as: local police, Attorney General's office or Department of Agriculture and Consumer Services.
Tip 5: Manage credit wisely.
Keep credit card and debt balances below the maximum. Credit is one way many Floridians manage emergencies. By keeping the limit below the maximum, you will have a temporary emergency fund available in the short term.
Tip 6: Know where your Important Papers are.
A well-ordered home filing system is important in responding to disasters. An updated household inventory is important in a speedy adjustment to property loss. The whereabouts of insurance policies will save time and stress in dealing with any type of covered loss resulting from a disaster. It is also important to locate contracts, bank and investment information. Knowing where family members are and how to locate them is important as well as knowing who and where family advisors are and how to locate them. If you need more information on what important papers to keep, where to keep them and how long to keep them contact your local county Extension agent for information.
Tip 7: Keep gasoline in your car.
This is standard procedure for families in remote areas of the state. A good rule is to keep at least 1/4 of a tank of gasoline at all times.
Tip 8: Review and update insurance policies.
It is a good practice to review your insurance policies on a regular basis. If your family situation has changed, review your coverage for life, health, and disability insurance. Do you need more or less insurance? Do you need to change beneficiaries? Check property insurance to ensure that your property is adequately covered. If you have an old car you may want to reduce coverage. Yet your "old" house may have increased in value and need more insurance.
Tip 9: Review and update your will and other property transfer documents.
Data show that only one out of four have a personal will. Remember if you don't make your wishes known about the disposition of your property, through properly executed transfer documents, the state has specified what will happen to your property. Many people will not have a problem with the first line to inherit but the problem comes with the second and third line to inherit.
Tip 10: Review your living will.
If you do not have one you may want to consider writing one. A living will is a written statement indicating that the signer does or does not wish extraordinary medical measures to be taken if he or she has no reasonable expectation of recovery. Living wills must conform precisely to laws in the state of the signer's residence. Hospitals routinely ask patients if they have a living will or if they want to write one.
Tip 11: Implement a standing plan.
Develop and use a "standing plan" for your actions. A standing plan is one that you and your family have developed in the event of disasters. The plan should include:
- What would you do immediately to get to safety?
- What would you take with you if you have time to evacuate (what papers, clothes, food, etc.)?
- Remember you always need identification on your person even when you walk or jog.
- What follow-up actions would you implement?
- Where would you and your family would meet if you were separated (school, church, police department, etc.)?
