That tornado ripping through your home has done more than damage your residence. In some cases it isn't the storm that hurts the most, but the recovery part thereafter. Your personal finances can be in tatters if disaster hits. Preparing now can help alleviate much grief later on, if you follow the important steps mentioned below:

Update Your Insurance: When was the last time you took a good, hard look at your insurance needs? Pull out your homeowner's policy to learn if insurance will cover the replacement value of your home. If it does not, then you need to contact your insurer to adjust your coverage accordingly.

Extra Insurance: If you live in an area prone to flooding, then a separate flood insurance policy is necessary. Your insurance company does not offer this type of coverage, only the federal government does. In addition, are you susceptible to earthquakes? If so, obtain an earthquake rider to cover that expense too.

Important Papers: When disaster strikes, it is often without any warning. Are all of your important papers in a secure place? If not, consider making copies of your important papers and leaving them with a relative in another state or in a safe deposit box at a bank far enough away from your home, but close enough to reach.

Money v. Plastic: While a credit card can often bail you out when things get rough, it will do you no good should the power fail. Ask those who have lived through a hurricane how long it took power to be restored in their area: don't think that your ATM will be accessible anytime soon so stash away some cash just in case.

Contact Creditors: If disaster hits, you must contact your creditors to let them know that you have been affected. Ask them to cancel automatic withdrawals and find out if you are eligible for a limited time deferral until you are back on your feet again.

Take Inventory: Take inventory of your home by taking pictures of your furniture, antiques, jewelry, and everything else of value. This will help you settle your claim faster with the insurance company and increase the likelihood that settlement will work in your favor.

When disaster hits you take enough of a hit without problems with your personal finances dragging everything down. Take action now to avoid a big hassle later; you'll be glad and have the peace of mind that you are truly prepared to weather any disaster that may befall you.