Recovering from a Natural Disaster Can Take a Toll

According to the National Oceanic and Atmospheric Administration (NOAA), the official Atlantic hurricane season starts June 1 and runs through November 30 — with the peak of the season occurring between mid-August and mid-October. Unfortunately, hurricanes and other natural disasters can cause untold damage. And no matter how much you prepare, sometimes it isn't enough.

Living through a natural disaster — like a hurricane, windstorm, or flood — can also be traumatic. More than that, dealing with the aftermath can also be draining — physically, emotionally and financially.

If you have suffered damage to your home, car, or personal belongings from a natural disaster, here's how to get back on your feet — and make sure your house is safe and habitable.

How to Recover Financially from a Natural Disaster

Natural disasters, including hurricanes, windstorms and floods, are an unfortunate reality for many residents of the southeastern U.S. These events can wreak havoc — damaging homes, cars and other property.

When disaster strikes, your top priority is ensuring your loved ones are safe. But once you've made it through, thoughts inevitably turn to dealing with the financial aftermath.

Filing Insurance Claims

The first step in financial recovery after a natural disaster is to file insurance claims.

• Homeowners or renters' insurance. Standard homeowners and renters' policies don't cover flood damage but may cover property damage caused by high winds.


• Flood insurance. If you purchased a separate flood insurance policy, contact the company to file a claim. If you have flood-related damage and have flood insurance, the company you purchased flood insurance through will schedule an inspection of your property with an adjuster.


• Auto insurance. If you have full coverage automobile insurance (which includes comprehensive coverage) and your car was damaged or destroyed as a result of a flood or windstorm, your comprehensive coverage should kick in.

Remember, insurance companies and adjusters tend to get bogged down after natural disasters, so file your claims as soon as possible. Take photos and videos of any storm-related damage and create a home inventory to ensure you're properly compensated.

Dealing with Uncovered Losses

You may have some losses that aren't covered by insurance. Fortunately, several state, federal and nonprofit programs are available to help you fill in the gaps.

You must live in a presidentially declared disaster area to receive financial assistance from Federal Emergency Management Agency (FEMA). Look up your address at DisasterAssistance.gov to see the status of your area.1 If you qualify, you can apply for FEMA disaster assistance online, using the FEMA app, or in person at a Disaster Recovery Center.2

The federal government also offers several other resources to help people in federally declared disaster areas buy groceries, get help with bills, access disaster unemployment benefits, get assistance with a mortgage or loan for home repairs, or apply for a small business disaster loan. Check out the Financial Assistance After a Disaster page at usa.gov to learn more about tapping into those benefits.3

Casualty losses — that is, physical damage to property — stemming from a presidentially declared natural disaster may also be deductible on your federal income tax return. To qualify for the deduction, you cannot have been (or expect to be) reimbursed for the loss by insurance or another disaster relief program.

The rules for claiming casualty losses are complex, so talk to your tax advisor or check out IRS Publication 547 for more details.4

Watch Out for Scams

Scam artists and criminals often try to exploit vulnerable survivors in the aftermath of a disaster. They may pose as government officials, insurance adjusters, or contractors to deceive victims out of their money or personal information. Here are some tips to help protect yourself from such scams:

• Verify credentials. Always ask for identification. Genuine officials should have no problem providing credentials.


• Don't pay for disaster relief help. Federal and state disaster relief workers never charge survivors a fee for applying for assistance or inspecting a property. Be suspicious of contractors who demand full payment upfront.


• Secure your personal information. Never give out your financial information, such as your bank account or Social Security number, over the phone unless you initiate the call and know the person on the other end.

While recovering financially from a natural disaster isn't easy, many programs are available to help. Once you're on your feet again, use this experience to re-evaluate your financial strategy and come out stronger.