What to Do Financially After a Flood or Fire

Experiencing a flood or fire can be devastating on many levels — emotionally, physically and financially. Taking care of yourself and your loved ones and ensuring you're safe and healthy are the biggest priorities in the immediate aftermath of a disaster. 

As you begin to recover, it’s important to shore up your finances so that you can start to rebuild. If you have an emergency fund or savings account, this may be the time to use it. 

If you don’t have a lot of savings and money is tight, a credit card or personal loan may help you rebuild. Just be sure to understand the interest rates and conditions of each option. Personal loans may offer higher borrowing amounts and lower interest rates than some credit cards, for example. 

Here are some additional important steps to take during this difficult time. 

Contact your insurance company 

If your property was damaged due to a fire or flood, you’ll want to contact your insurance company as soon as you can to start the claims process. You may have different insurance providers for your home and car or for different types of disasters. 

The following steps can help get you started: 

• Report your disaster to your insurance company. Share any photos or videos of the damage. Continue to document any damage and repair efforts in the days and weeks ahead. 
• Review a copy of your insurance policy. If you don’t have one on hand, ask your insurance provider. This way, you can get a sense of how they might help you restore your home or replace other property like your car. 
• Look for proof of ownership. You may need to prove you owned the items that were damaged. You’ll typically submit receipts or photos as part of the claims process. 
• Keep detailed records. It’s important to take notes and save any correspondence, paperwork or receipts throughout the entire process in case you need to seek reimbursement or refer to them later.  

Once the wheels are in motion, try to check in with your insurance provider regularly to see how your claims are progressing. 

Look into local and government assistance 

If the flooding or fire is due to a natural disaster, you may be able to access financial assistance and disaster aid from the Federal Emergency Management Agency (FEMA) through DisasterAssistance.gov. 

You could also contact your town, city or state government and local charities to see if they are providing any aid to help people get back on their feet. For disasters that affect your entire community, the Red Cross and other organizations may be able to assist with immediate needs. 

You might also consider applying for government benefits such as unemployment or food assistance if you’ve lost your job or are unable to keep working due to a disaster.

Take stock of your bills and expenses

While it can be difficult to think about your finances during an overwhelming time, it’s a good idea to identify which bills are coming due and determine how you’ll pay for them. For example, while FEMA assistance may cover a lot of things related to your immediate needs and recovery, it may not help you meet every financial obligation that you have. Whether you need to cover temporary lodging, your phone bill or a student loan payment, getting organized and figuring out what you’ll need to pay for in the near term is key. 

Reach out to your mortgage lender and utility companies

In some cases, lenders and service providers may activate emergency programs for borrowers and customers living in an area affected by a disaster. Call your creditors to see if you qualify. Even if you don’t, they still may be able to help.

If your home is too damaged to live in, ask your mortgage lender whether it’s possible to change or pause your repayment plan. Likewise, see if you can suspend service with utility providers like electric, gas, water and internet. Ask if they have any policies around deferring payments or waiving late fees. 

Additionally, it may be worthwhile to call your credit card company, student loan servicer and any other lenders to see if they are willing to extend your payment due dates, pause payments or offer other support.

Do your best during a difficult time 

Experiencing a flood or fire is a life-changing event with many short and long-term consequences. If your home and belongings are damaged, you may need to look for support, financial and otherwise.    

Do what you can to stay on top of your finances, contact the appropriate service providers and ask for assistance. Hopefully, you'll find some peace of mind during a stressful time.

Notice: Information provided in this article is for information purposes only and does not necessarily reflect the views of techloy.com or its employees. Please be sure to consult your financial advisor about your financial circumstances and options. This site may receive compensation from advertisers for links to third-party websites.