Do You Have a Disaster Savings Account?

With the recent ice storm, have ever been subjected to a similar natural disaster or know someone who has? You may know the huge personal and financial costs that are involved in the aftermath. The benefits of having an emergency preparedness kit are widely touted as responsible disaster planning, but having a disaster savings account is even better. These accounts are meant to mitigate the aftermath of a natural disaster by ensuring that you have some financial reserve to cope with the damage after a disaster. While it may be unreasonable to put away a great deal of money into such an account, even having a small amount could help lessen the recovery costs–particularly if your insurance covers much of the damage.

Taking every precaution to prepare yourself and your home for a natural disaster is very important. Over the past few months, tornadoes, tropical storms, and severe winter weather have affected a large part of the world. Using events like these to increase your individual awareness and preparedness will serve you if and when a disaster does occur. Things like making your home more secure, ensuring your insurance coverage is adequate, and planning an emergency response are all excellent methods of preparation. Beyond these, however, maintaining a financial disaster solution is the most important kind of protection to have.

The most devastating part of a disaster is often the loss of or severe damage to a home. While insurance and government relief can help the recovery process, a personal disaster savings account can ultimately be the difference in the degree of recovery. Like any emergency fund, the more you have stowed away, the easier it can be to get your life back in order. A good idea may be to set up a separate account with your bank as a disaster fund. This account should not be touched outside of emergencies. No matter what kind of disasters are common in your region, a disaster savings account is a beneficial thing to have.