In the early months of 2011, many unfortunate souls inhabiting New Zealand and Japan discovered that natural disasters can destroy your personal possessions in a matter of seconds. One minute your house is there, the next, it’s gone. It’s a tragic story, one that you will hopefully not have to live through in your neighbourhood. But while you may be safe from drastic earthquakes and tsunamis in your area, fires, flash floods, and hurricanes can wreak just as much damage to your assets. Here are some tips on how to keep those financial assets safe in the event of a natural disaster.
Make Sure You Are Carrying Enough Insurance
There is nothing that you can do to prevent a natural disaster from occurring, as much as we may want to. But one way that you can safeguard your financial investments from natural disasters is to make sure that you have a decent insurance policy.
Renters Should Have Insurance Too
Many people think that if they are renting their home, then they do not need any type of insurance to protect their assets. This is one of the biggest misconceptions there is about renter’s insurance, one that I want to break. If your flat is flooded, or broken into, you will have to replace everything yourself if you do not have renter’s insurance. But with renter’s insurance, the insurance company protects you from theft, floods, fires, and other natural disasters.
Create an Emergency Fund
This is the most essential thing that a home owner can do in order to protect their assets from the destruction of a natural disaster. You should always take at least ten percent of each of your paychecks and put it in the bank and leave it sit there to accrue interest.
Protect your Financial and Personal Information
If a natural disaster does strike in your neighbourhood, you will not have time to gather up all of your important personal and financial documents. You will want to make sure that you get you and your family to safety. An easy way to prevent the complete and total loss of all of your important documents is to make copies of those documents, and keep them in a secure place, such as a bank security deposit box.