211 Disasters

Protect Your Family Financially After a Disaster

The Consumer Financial Protection Bureau shared this blog about how to protect yourself financially following a disaster for those affected by the hurricanes of 2017. However, the information applies to anyone affected by any disaster. Below is a synopsis, but the link contains the full information.

Seeking Assistance and Organizing Your Finances

When a catastrophe like a hurricane or earthquake happens, your world can be turned upside down. During these tough times, it may be difficult to know who to trust and where to look for guidance and assistance, as well as 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 shelters. Local organizations will establish shelters and provide vouchers for meals, clothing and a limited amount of 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.

After contacting the companies related to your most urgent financial needs, take a 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 the type of loan you have, your lender may be willing to temporarily reduce or suspend your payments; this is referred to as forbearance. To learn more, visit the U.S. Department of Housing and Urban Development (HUD). 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. This quick guide will provide you with some of the basics about how an insurance settlement works. 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 finished and the home passes inspection.
• How to choose a contractor. Read our tips to consider when evaluating contractors to help fix or rebuild your home after a disaster.

Warning: Be aware of scams

During and after disasters there is also an increased risk for scams and fraud. To avoid scams, you need to ask lots of questions. 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.

Starting over requires a lot of hard choices. If you have been affected by disaster and want to make sure your financial records are secure, download a FEMA disaster checklist to help you consolidate all the information you need-including account numbers, personal records and financial records. Being prepared and knowing how to protect yourself can help you avoid scams and get back on your feet faster.

Find more information on how the Bureau encourages financial institutions to assist consumers after an emergency or natural disaster.

If you’re having trouble with a financial product, you can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372).