Looking back at 2007, it sure seems like nature had it in for the suburbs. The whole country was beset by weather related disasters. We had wildfires in Southern California, ice storms in the Midwest, and flooding in the Northeast. It was devastating for those affected, and chilling for everyone else. The damaged homes on the news were ordinary suburban homes. It was so easy to imagine it happening to us or someone we loved. The truth is that our homes are susceptible to fire and water damage. They are lovely straw houses, waiting for an accident, a little negligence, or the perfect storm.



So what should we do to prepare?

If you want to recover financially from a home disaster, there are two things you need to protect: your digital information and your physical possessions. Vanessa Wood of Design to Spec, LLC http://www.DesignToSpec.com/ was one of those unlucky people whose home was flooded on four separate occasions in 2007. She gives us three tips for protecting our digital files and connections:

1. Don't touch that computer! Whether your computer has been under water, smoke damaged, or hit by debris, it might not be safe to touch immediately after a disaster. Unplug your computer so it will not experience a power surge when downed power is turned back on. Allow a professional PC consultant to examine the hard drive. A good consultant can recommend a sterile lab that is expert at the recovery of valuable data and files.

2. Store hard to replace records and files on a server. This could even be the same server that hosts your website. Taking this extra step may entail scanning documents and choosing to accept bank records in a digital format. Not only will you have your records in a safe location, but you will free up space in your filing cabinets and shelves. Check with your tax advisor to verify which records can be held as digital records, rather than paper.

3. Stay mobile. Stay flexible. You may not be home for awhile. You might have to handle your finances or an insurance claim from a friend's house, library or hotel. Be sure your laptop has the programs you use everyday. Know how to forward your phone numbers to your cell phone. If you use an email address that's derived from your internet cable service (for example, janedoe@optonline.net) know your service password so you can read emails as web mail because a storm, fire or other disaster may knock out your local cable service connection. Remember, too, that online banking services can be invaluable when trying to manage bill payments in a crisis.

What about your physical possessions? You should ask yourself how much it would cost if you had to replace all your belongings yourself. Even if you have home insurance, your initial estimate might be closer to reality than you thought. A client of mine, Julie, lost all the contents of her home when her condo complex burnt to the ground. She offers three tips for protecting and recovering your physical belongings:

1. Do not be underinsured. If you purchase big ticket items, or remodel, make sure you update your insurance policy to cover all your new additions.

2. Keep detailed records of all estimates, transactions and conversations. Julie had to go over her agent's head to a supervisor to get the rest of the money that she was owed for her insurance claim. She was able to do this because she kept notes and copies of everything she mailed and faxed.

3. Don't keep your important documents in your home. Keep your passport and other important documents in a safe location. Julie's home safe didn't withstand the heat of the fire and all was lost. If you must keep the originals at home, keep copies in a separate safe location, like a safety deposit box at your bank.

My hope is that everyone affected in the disasters of 2007 were well prepared, but I know some are probably still struggling to recover what they lost. Make sure you're prepared for disaster by following the tips above.