Natural disasters such as major wildfires, hurricanes, and floods can change lives in an instant, but it can take months to recover from economic damage. Still, there is plenty of help available to those affected.
Here’s how to get help and use your resources strategically as you begin to rebuild after a disaster.
Address immediate needs first
First things first: Contact the Federal Emergency Management Agency and text “DRC” and your zip code to 43362 to receive assistance through the Disaster Recovery Center. Text “Apple” or “Android” to the same number and you will be provided with a download link for the application. FEMA’s mobile app with additional resources such as shelter locations.
Local and state authorities and non-governmental organizations such as the Red Cross can also help. Call 211 from any phone or visit 211.org for information.
Also check your credit card and hotel loyalty accounts. You may have points or free night certificates that can cover your accommodation costs for the time being.
Some popular rewards credit cards let you use your points to book hotels directly through their own travel portals or transfer your points to certain hotel loyalty programs. Some nearby hotels may also offer discounts for evacuees.
Next, we tend to address economic issues
Start managing your money as soon as possible. FEMA provides unemployment assistance, rental assistance, legal services, and more. There are several ways to register, including online at DisasterAssistance.gov, through the FEMA app, at Disaster Recovery Centers, or by phone at 800-621-3362 (FEMA).
Money Management International, a nonprofit credit counseling agency, has a free program called Project Porchlight that provides up to a year of assistance to disaster victims. The program helps people navigate unfamiliar processes, meet deadlines, and deal with trauma that makes it difficult to handle tasks.
And there are some tasks that need to be taken care of.
Contact your insurance company as soon as possible
Act now to get the most out of your home insurance, renters protection, and auto insurance.
Please check your insurance policy for the types of damages covered, coverage and deductibles. Home and renters insurance policies typically do not cover flood damage, so if you have flood insurance, check that policy as well. As long as you have comprehensive auto insurance, your car will be covered for flood and wind damage.
Report the damage to your agent or insurance company as soon as possible. The sooner you file, the better, as insurance companies will be faced with excessive claims.
Ask about coverage, the time it takes to file and process a claim, whether your claim will exceed your deductible, and whether you need an estimate to repair structural damage. You should ask about coverage for living expenses and reimbursement for rental cars if you are evacuated. Some insurance companies will also cover the loss of spoiled food.
When talking to your insurance company, ask what you can throw away and what you need to document for your claim. Take photos and videos of the damage and do everything you can to protect your property. Take detailed notes of all interactions with your insurance company. Click here to learn more about how to apply for home insurance.
Call your mortgage company or other creditors
Mortgage forgiveness is a way to avoid foreclosure and may allow you to make partial payments or stop payments altogether for an agreed period of time.
Bruce McCrary, a spokesman for the National Credit Counseling Foundation, said in an email that creditors should be proactive in communicating with them. Impassable roads, power outages, internet access, and phone service outages can all prevent you from making on-time payments. “Once creditors are aware of these things, they may offer temporary payment relief,” McCrary says. Hardship programs may temporarily waive fees or lower interest rates.
In areas where power and communications are cut off, cash is paramount, so you may have to use a credit card to withdraw cash from an ATM. McCrary notes that interest rates are typically higher.
Ask for a suspension of student loan payments and contact your university for assistance
Federal student loan borrowers may qualify for natural disaster forgiveness, which suspends or reduces payments for up to 90 days.
Some borrowers may receive this forbearance automatically, but you may need to proactively request it from your student loan servicer. Interest will be added to your debt during this grace period, potentially increasing the amount you owe in the future.
Payment relief options for private student loan borrowers vary by lender. Call your lender and ask about your options.
If you are a current student and your or your family’s finances have been affected, please contact your school’s financial aid office and ask that your financial aid eligibility be reevaluated due to your changed circumstances. You can also apply for more immediate funding through your school’s Emergency Financial Assistance Fund.
If you are evacuated, notify your school’s financial aid office (or student loan servicer) of your change of residence.
Dig strategically with aid, credit, and debt
“Rebuilding and repairs after a disaster can be incredibly expensive, even for people who have insurance,” said Kate Bulger, vice president of business development at Money Management International. I say. “Applying for as much assistance as possible and setting aside cash now means consumers will have more money left over when they are ready to rebuild.”
If you run out of aid or emergency funds, you may need to rely on credit to buy essentials or repair damage. Recently, some major card issuers have made it easier (and cheaper) to convert available lines of credit into installment loans, often with lower ongoing interest rates. Alternatively, you may be able to break down large, urgent purchases into predictable monthly payments.
Once you have a clear picture of your debt, consider a strategy to pay off your balance. Debt snowballing allows you to get quick wins and motivation by focusing your efforts on the smallest debt first while minimizing payments on other debts.
Finally, be aware of debt relief options to address amounts beyond your ability to repay.
NerdWallet writers and editors Caitlin Constantine, Meghan Coyle, Eliza Haverstock, Lauren Schwahn, and Kate Wood contributed to this article.
(Lead photo: Mario Tama/Getty Images News via Getty Images)
