Disaster-proof Your Financial House

It’s hurricane season once again, but even if you don’t live along the South-East coast, there are still other potential natural and man-made disasters to guard against. During an emergency is not the best time to try and figure out where the insurance policies are, and which family photo albums to grab. Knowing these things in advance keeps you free to concentrate on what’s most important – getting yourself and your loved ones to a safe haven. Below are tips from financial website, The Motley Fool, on how to prepare your important papers and possessions in order to keep potential financial damage to a minimum. Yes, it's a lot, but don't get overwhelmed. Begin with one or two things now, and work your way down the list as you can. You'll be glad you did. For a detailed version of this article, click here.

1. Open a safe deposit box at your local bank. Make sure it's large enough to accommodate your valuables, and keep an updated inventory of its contents. Also make sure the box can be accessed by another trusted person should you be unable to do so.

2. Make copies (or get duplicates) of every important document in your file cabinet. These include wills, trusts, health-care directives, and powers of attorney. You should also make copies of passports, birth and marriage certificates, military discharge papers, naturalization papers, loan documents, appraisals, certificates of authenticity, deeds, credit cards (front and back), insurance policies, warranty information, love letters, favorite recipes, kids' artwork, report cards, and whatever else you deem important.

3. Store these documents and any others containing confidential or sensitive data in your safe deposit box or home safe. A safe is also a good spot for your spare keys, irreplaceable items, and valuables (such as jewelry and coin and stamp collections). Originals or duplicates of photos, negatives, and other paperwork should be kept off-premises -- at your office, perhaps, or a trusted friend's home.

4. Maintain a current list of secret passwords, access codes, PINs, the combination of your home safe (or the location of the spare key), and other confidential data. Store this and other confidential information (along with the spare key to your safe deposit box) at a secure, but readily accessible, location.

5. Make important items portable. Items that cannot be photocopied and/or must be kept at your home should be stored in portable file boxes. Write "Take" on the tops and sides of the boxes and store them in a place where they can be easily accessed in the event you are forced to evacuate. Keep an empty file box at the ready for the contents of your home safe. If you are planning to be away, consider storing these items with someone who can remove and/or protect them should a disaster occur in your absence.

6. Make a current inventory. A room-by-room written (or video) inventory of all your possessions will help speed the process of insurance claims should it come to that. Include items in your garage, basement, and attic, plus serial numbers, dates of purchase, and purchase prices where applicable. Store this information in your safe deposit box.

7. Create Command Central for your family. In a three-ring binder, store personal information that can provide direction for family and loved ones following a disaster. Life is complicated, and unfortunately, so is death or incapacitation. You can make it easier on your family by compiling every important detail about your household and estate. This can be a lifesaver to loved ones who won't have to second-guess your wishes or search through piles of unorganized documents during times of tragedy.

8. Preserve the memory of items like artwork and plaques by taking digital photos of them to be stored off-premises. During an evacuation, it might be hard to cart off a sculpture while wrangling dogs and kids. The same goes for computer data. Back up your hard drive frequently and store it in the safe or off-site. An "ethical will" is another way to leave a lasting legacy to loved ones. It's a beautiful way to pass along important memories, advice, and inspiration.