Thursday, January 10, 2013

Emergency Preparations - Are you Financially Ready for Emergencies?

Are you prepared for an emergency? You need to be financially prepared for emergencies, or you will end up taking a hard financial hit. 

Here are some things to consider when it comes to financial emergencies:

1. Is your insurance coverage going to be sufficient? Are you a homeowner? If so, do you have adequate coverage for your house and contents? Do you live in a flood-prone area? If so, it’s possible you will need a separate flood policy, as most regular homeowner’s policies don’t cover damage from flooding. If you rent your home privately or from the council, tenants insurance could be a sensible option. While some council housing may come with a certain amount of tenants’ coverage, it can vary, and hardly ever covers the cost of even half your household contents. Your best option would be to use a comparison site to find a tenants insurance policy which you should be able to find for less than twenty pounds per month.

2. Are your financial records in a safe and secure location? The Red Cross recommends you keep at hand a “disaster kit,” a portable, waterproof, fire-resistant box that you keep nearby at all times, it should contain:

  • Home improvement records 
  • A record of all your possessions 
  • Warranties and/or receipts for major purchases 
  • Evaluations of jewellery, collectibles, artwork, and other valuable items 
  • Credit card records or at least your account number and login information 
  • Retirement account records or account number and login information 
  • Recent current, savings, and investment account statements or account number and login information 
  • Tenancy agreement, lease and/or mortgage documents 
  • Recent pay slips and any employee benefits information you may have 
  • Backups of important digital information, such as any accounts etc. 
  • If you have one, Safe deposit box information such as the location, contents, and key 

Also you might want to keep a copy of your will and any solicitors documents you own.

3. Do you own any dispensable cash? It’s a good idea to have some cash hidden in a safe place, because bank card readers and cash machines won’t be working if the power goes out. Maybe if you have a cheque book also keep some blank checks (unsigned) with you.

This article was contributed by Frank Sexton on behalf of BadCreditPersonalLoans.co.uk. They specialize in providing low rate bad credit loans and also love sharing financial advice through different blogs.

1 comment:

  1. Lots of people find saving difficult because of tough economic situation. It can be hard to keep some money of each wage and put it into emergency fund. That’s why unexpected financial problems make us so vulnerable. Some people prefer borrowing from friends or family members why others just do not want to talk about their problems and apply for instant payday loans. I think that it’s better to try to save some cash and create an emergency fund, it will make you feel more financially confident. Put at least some amount of cash to the emergency fund regularly and there will be no need to borrow money in emergency.

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