April 7, 2006

Financial Readiness Pays Off During Disaster - Or In A Pinch
by Tim Simmers, Inside Bay Area

If you are talking about preparing for a natural disaster in Northern California, most people think earthquakes, fires and floods.

Everybody has heard about putting away some bottled water, canned food, flashlights, batteries, candles and a battery-operated radio in case of an emergency — especially with the 100th anniversary of the 1906 San Francisco earthquake approaching later this month.

But your disaster plan also should include having easy access to your critical financial information, vital family records and key insurance data, according to local banking sources.

And remember, cell phones may not work and computers could go down in a natural disaster.

"Most people say, 'Not me; it's not going to happen in my life,'" said John Conover, president and chief executive officer of Borel Private Bank & Trust Co. in San Mateo. "But in hindsight it's something you'd regret not doing if it does happen."

Conover could see that "preparedness really helped" when he worked with bank clients after the 1989 Loma Prieta earthquake.

He also spent an inordinate amount of time trying to figure out where his own daughter was during that quake.

"I realized you need to have a family member or friend outside the area who can be a center spot all family members can call," he said.

As for some things to do for financial preparedness here's a good starting list, according to Borel bank and Union Bank of California:

- Make copies of your family's vital records and store them in a safe, readily accessible location. Be sure to store original documents in waterproof bags in a safe deposit box or durable "evacuation box." You could also use a CD to back up key documents on your computer. And, if practical, store some copies with friends or relatives.

- Know what types of losses your renters or homeowners insurance covers. Ask your insurance agent or financial planner about additional coverage for floods, earthquakes, home offices and big-ticket items. Keep copies of your policies in a safe place along with your other important papers.

- Create a written inventory of significant items of value. Take photographs or make video recordings of this property.

- Keep a list of key advisers, relatives, doctors, medical facilities, bankers, lawyers, financial planners and close friends. Someone else may have to conduct your business on your behalf, so include all the information a person would need. Also, credit card 1-800 numbers can help you quickly retrieve account information.

- Keep around $300 in cash (or what you can afford) at home in a place where you can get to it quickly in case of evacuation. The money should be in small denominations, so you can easily spend it.

- Have a family meeting and prepare an evacuation strategy and meeting plan in advance for making contact with your family after a major disaster.

- Give copies of your family's vital records to a trusted family member, friend or adviser outside of your immediate area. Make sure others know to whom you have given these vital records.

- If you can, keep a separate emergency savings account that could provide living expenses for a month or two, or more if you can afford it.

- Also, this may sound morbid, but write out some kind of health care directive, describing how you want to be taken care of should you become incapacitated. You may want control of how long you are kept alive or treated in a worst-case scenario.

Kathryn Breaux, a San Mateo teacher and client of Borel Bank, has begun tweaking her financial preparedness plan and family contact list.

She received a Disaster Preparedness Kit from Borel, which includes a thick plastic briefcase for important documents, insurance information and advisers, and she's diligently working on her plan.

"I told myself, I've got to get this in order," Breaux said. "I just realized how extensive the preparedness needs to be." She's gathering personal papers, family pictures and getting her contacts for her children and grandchildren.

Julius Robinson, a Union Bank of California senior vice president and regional manager, said his Oakland house was spared after the Loma Prieta earthquake, but it made him think hard about preparing.

"It will occur when you least expect it," he said. "Make sure what you're being covered for with your home insurance, and keep a couple of hundred dollars deep in your wallet if you can."

Business Writer Tim Simmers can be reached at (650) 348-4361 or tsimmers@angnewspapers.com .