Buy Like Buffett: Preparing Your Finances in Case of Natural Disasters

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The recent hurricane on the East Coast has helped to focus efforts on the importance of being prepared in the event of an emergency. Items like non perishable food, water, flashlights, batteries, and candles are essential for when catastrophe strikes. In your financial life, there is certain information that you should always have handy in the event of an emergency.

Let's take a look at them.

Locate all insurance information

It is important to make sure that you keep all of your personal insurance information together so it is available in one safe location. This includes all health insurance, homeowners insurance, and life insurance policies. Keeping this information in one easy to find place will make it simpler to access coverage amounts, deductibles, and policy information. You do not want to have to search for this information when you are in need of it.

Stockpile your emergency cash

It is always a good idea to have some emergency cash put away for when you are in a pinch. You can place the money in a secure location like a bank or lock some spare cash in a safe. You just need to put away enough dollars to get you through a severe financial hardship like a loss of job or a temporary layoff. Emergency cash will keep you from having to max out your credit cards at a time when you are the most financially vulnerable.

Create a survival plan

Estate planning is critical to ensure the financial security of your loved ones. Too many people fail to leave a plan in place for the distribution of their assets in an emergency. It is important to see a lawyer and construct a will or trust so your assets can pass freely to your beneficiaries. A lawyer can help you to craft a plan that will address your wishes in the event of death or disability.

Request all original titles

In order to collect money in the event of the loss of an asset, you will need to have the original title demonstrating proof of ownership. Companies use titles to identify the rightful holder of an asset. You should keep a record of ownership for your home, car, and any other valuable assets that you own. This way the claims process will go a lot faster and you can start collecting your benefits sooner.

Applying these steps will allow you to spend less time searching for this important information when disaster strikes.

Mark Riddix is the founder and president of New Horizons Financial Management, an independent investment advisory firm that provides personalized investing and asset management consulting. Mark is a regular contributor to Seeking Alpha and has written financial columns for Baltimore and Washington, D.C. area newspapers. Mark publishes his own financial blog, BuylikeBuffett.com and has written the book Your Financial Playbook.