Talking money; What should you protect in case of an emergency
By
Jean Chatzky, Richmond Times-Dispatch, Va.,
Source: MCT Business News
Dec. 31--Just the sound of an ambulance siren blaring is enough to make me tense up, and I'm sure that's a natural reaction for all of us. We are all often fearful of losing everything we've worked so hard for -- our homes, furnishings, invaluable family heirlooms can all be damaged in a disaster.
Sure, if you're a homeowner, you have insurance. And if you're a renter, I certainly hope you have a renter's policy. (Half of renters don't, by the way. If you're in that group, please use this column as a nudge to start shopping.)
But while a good insurance policy will cover your possessions and the cost to rebuild your home, there are things you'll never get back -- those heirlooms, for one, but also vital personal documents and legal paperwork. Why not gather what you need to protect in case of an emergency? Here's a road map:
-- Know what's considered vital. In and after an emergency, the following items are key: insurance cards or policy numbers, important contact information, copies of deeds, titles, estate-planning documents, bank and investment account information, birth and marriage certificates, passports, driver's licenses or other identification cards, emergency contact numbers (for your doctor, pharmacy, family members and attorney), debt statements and recent tax returns. You also may want a CD of family photos or a backup of your computer hard drive. -- Open a safe-deposit box. It will cost you anywhere from about $20 to $100 a year, depending on your bank and the size of your box, but it's more than worth it for storing extra copies of the documents listed above. You don't want to store original copies or things you might need immediately. "Things you're not going to want to have in there include your passport, your power of attorney originals, the original copy of your will," says Laura Leist, the president of the National Association of Professional Organizers and author of "Eliminate Chaos: The 10-Step Process to Organize Your Home and Life." -- Get organized. Debra Pankow, an associate professor and family economics specialist at North Dakota State University, suggests pulling together a "grab-and-go box," something that you can easily carry with you if you have to evacuate your home. Ideally, you want something that is fireproof and waterproof. Look for a small safe that has a Class 350 1-hour fire rating. In addition to the papers mentioned above, which you can put in plastic covers for double protection, you should keep an extra key to your safe-deposit box in here. -- Have a financial buddy. It may be your spouse, your adult child or a close friend, but someone should know where you keep your important papers. They also should have contact information for your attorney, accountant or anyone else they might need to reach in an emergency. Operation Hope has a guide that you can fill out with information about yourself, your family members, your pets, as well as contact information for people who work with you, on their Web site at http://www.operationhope.org/pdpg. Keep a copy of the form in your grab-and-go box and give additional copies to your financial buddy. -- Consider an electronic storage space. It will cost you a little bit, but purchasing just a small amount of storage space from a company that will store scans of your important documents in a secure space online is generally worth it if you're looking for double protection.
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Jean Chatzky is an editor-at-large at Money magazine and serves as AOL's official Money Coach. She is the personal finance editor for NBC's "Today" show. Her Web site is http://www.jeanchatzky.com.
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