Armchair Millionaire Community Bulletin: If Disaster Strikes, will You Be Ready?

You cant control where or when disaster may hit. But you take control of your preparations to ensure that youre as ready possible to cope with an emergency.

New York, NY (PRWEB) June 7, 2005 -- According to the National Climatic Data Center, the U.S. was hit with 62 separate weather-related disasters that each exceeded $1billion of damage during the 1980-2004 time period. So homeowners are well advised to take some basic steps to prepare themselves in case disaster strikes.

One member of the Armchair Millionaire community who seems well acquainted with adversity hitting close to home recently reported the steps they take to cope:

We have enough insurance to cover most disasters and an emergency fund to cover the insurance deductibles. We keep important papers in a fire safe. Power outages are a big problem where we live. Some of our preparations include bottled water, propane stove and fireplace, easy-to-prepare meals, blankets to insulate the freezer, battery-powered lanterns, a battery charger/air pump that charges off a running car, and a hand-cranked radio. Several times we have managed for five or six days with very few loses."
- TAP

Depending on where you live, your concern may be hurricanes, or tornados, or floods, or wildfires or earthquakes. Regardless, the steps you should take to be ready are much the same. Use my checklist to be prepared.

The Armchair Millionaire's Checklist for Being Prepared for a Disaster

Do a household inventory. Having a complete list of your possessions will help you get a fair insurance payment by showing what you owned and what each item was worth. It will also provide documentation should you deduct those losses on your tax return. There are inexpensive software programs available that make it easy to create an inventory, or your insurance agent should be able to provide an inventory booklet that you can fill out. In addition, use a video camera to record every room in your house (including closets), the exterior of your house and your vehicles--it could be invaluable later for jogging your memory about exactly everything you had.

Make your important documents safe. Keep the originals of all important documents that would be difficult to replace in a safe deposit box. This includes deeds; insurance policies; vehicle titles; birth, marriage and death certificates; and stock and bond certificates. (One exception is your will. The original should be on file at your lawyers office, and a copy in your safe deposit box.) It will also be helpful to have copies of recent tax returns and financial records such as investment account statements. If space in your safe deposit box is at a premium and youre technically inclined, you can scan these documents and put them on a CD. Also, dont forget to put a copy of your household inventory in your safe deposit box.

Have enough insurance. Even worse than the disaster itself may be finding out after that fact that you dont have enough insurance to cover your losses. Consider guaranteed replacement cost coverage, which will pay whatever it costs to rebuild your home. And for your possessions, get replacement cost coverage, which will pay to replace your belongings new, rather than just pay for the value of the items lost.

Get extra insurance, as needed. Depending on where you live, get flood and/or earthquake insurance, neither of which is included in standard homeowners policies. Get a rider for any expensive items not otherwise covered, such as for computers, jewelry or artwork.

The Bottom Line: You cant control where or when disaster may hit. But you take control of your preparations to ensure that youre as ready possible to cope with an emergency.

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Lewis Schiff founded the Armchair Millionaire Web site in 1997. His first book, The Armchair Millionaire, was published in 2001. Schiff's newest report, "How to Know When You Are Rich," is now available at www.armchairmillionaire.com.

Contact Information:
Lewis Schiff
Armchair Millionaire
877-833-2823
http://www.armchairmillionaire.com

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