A natural disaster can turn your world upside down. During these challenging times, it may not be easy to know who to trust, where to look for guidance and assistance, and what financial steps to take as you begin recovering. These are a few organizations that can help immediately after a natural disaster:
The Federal Emergency Management Agency (FEMA) website will help you find up–to–date resources and information.
The Red Cross can help you find aid and shelter. Local organizations will establish shelters and provide vouchers for meals, clothing and limited personal goods.
The Disaster Assistance Improvement Program (DAIP) can provide disaster survivors with information, support, services, and a way to access and apply for disaster assistance.
Once your most urgent needs are addressed
Start thinking about your financial obligations once you have addressed your most urgent needs, especially if you have experienced damage to your home or property.
1. Contact your insurance company. If the storm damaged your home, car, or property and you have insurance, you can start the claims process by calling your insurance company. If you plan to claim damages related to flooding or storm damage, you should verify that you have the right coverage. If you don’t have a copy of your insurance policy, you can ask for one. Ask for an electronic copy of your policy—receiving physical mail may be difficult following the disaster. That will help you verify your coverage. If possible, take photos and videos of your damaged property. Documenting damage will help you with your insurance claim.
2. Register for assistance. Registering online at www.FEMA.gov is the quickest way to register for FEMA assistance. If you cannot access the internet, call: 711 or 1-800-621-3362.
3. Contact your mortgage servicer. Talk to your mortgage lender right away and tell them about your situation. Damage to your home does not eliminate your responsibility to pay your mortgage. However, given the circumstances, your lender may be willing to work with you. If you don’t have your lender’s contact information, your monthly mortgage statement, or coupon book with you, you can search the Mortgage Electronic Registration Systems (MERS) or call toll-free at 800-679-6377 to find the company that services your mortgage.
4. Contact your credit card companies and other lenders. If your income is interrupted or your expenses go up, and you don’t think you can pay your credit cards or other loans, contact your lenders as soon as possible. Ask your creditor to work with you. Explain your situation and when you think you can resume regular payments. It is essential to make those calls before your following payments are due.
5. Contact your utility companies. If your home is damaged, ask the utility companies to suspend your service if you can’t live there. This could help free up money in your budget for other expenses. After contacting the companies related to your most urgent financial needs, look at your bills and set priorities—including your mortgage, rent, and insurance payments. Given the countless people experiencing distress from the flooding, contacting your creditors may be difficult. Be persistent and make every effort to reach them.
Additional resources
Forbearance. Depending upon your loan type, your lender may be willing to reduce or suspend your payments temporarily; this is referred to as forbearance. If you have student loans, ask your servicer if you qualify for a temporary forbearance. Federal student loan borrowers may be eligible for up to three months of forbearance.
Insurance settlement. Typically, your mortgage servicer will release a portion of the settlement money before work begins so you can hire a contractor. When the work is halfway finished, the servicer will typically release more money. The rest will be released once the job is completed and the home passes inspection.
Warning: Be aware of scams
While many people pull together during times of crisis, there is also an increased risk of scams and fraud. To avoid scams, you need to ask questions—lots of them. Questions will help you determine if something is too good to be true. If the person trying to sell you a product or service can’t or won’t answer your questions, this is a red flag that you might want to look for someone else to do business with.
Watch out for:
People who want you to pay up-front fees to help you claim services, benefits, or get loans.
Contractors selling repairs door-to-door, especially when they ask to receive payment upfront or offer deep discounts.
Con artists posing as government employees, insurance adjusters, law enforcement officials, or bank employees. It is easy to fake credibility and uniforms, so do not give out personal information to people you don’t know. Government employees never charge to help you get a benefit or service and will never ask for payment or financial information.
Fake charities. Typically, legitimate organizations do not have similar names to government agencies or other charities, so it may be a scam if they do. Never give out donations over the phone.
Limited time offers. Anyone who offers you something and tells you it is for a very limited time may be trying to pressure you into something you could later regret. You should never be pressured to make a decision on the spot or to sign anything without having enough time to review it. Take your time, read and understand anything presented to you, and ask a trusted friend, relative, or attorney before acting.
Source: Consumer Financial Protection Bureau: www.consumerfinance.gov
