CoralGables-June2018

Voices
Your Money by Eileen Santana
The importance of
financial planning
for hurricane season
HOW TO AVOID A CATEGORY FIVE FI-
NANCIAL CRISIS WHEN A STORM HITS
Eileen Santana, CFP®, is a Senior Vice
President at the Coral Gables Trust Company
With hurricane season
upon us and the aftermath
of Hurricane Irma on the
City Beautiful still fresh in our
minds, now is the time to start
your disaster preparedness.
Forecasters are predicting another
busy season this year and
as residents of Coral Gables,
most of us know to stock up on
food, water, batteries, gas and
other preparation items. But
ensuring that our finances are
well-organized and protected is
not always top of mind.
Do you have an emergency
fund in place? Do you
have adequate insurance on
your home and businesses? Are
your documents protected?
The following tips are critical
to avoiding a category five
financial crisis in the event of a
hurricane.
Establish an emergency
fund: With any emergency
comes additional unexpected
expenses. Having an emergency
fund in place can ensure that
you don’t have to sell securities
or assets at an inopportune
time, like when the market is
bearish, and having to incur
short-term capital gains taxes.
An emergency fund consists of
a savings account with enough
funds to cover the cost of
hurricane supplies, evacuation
costs such as hotels and gas,
home repairs (while you wait
for insurance reimbursement),
cash in the event of a power
outage (as ATMs and banks
will not be accessible), and
a credit card designated for
emergency use only.
Review your insurance
coverage: Make sure you
understand what is covered
under your homeowner’s policy
as well as any automobile, boat,
business, or renter’s insurances.
Make sure they haven’t lapsed.
And remember that Hurricane
deductibles are based on a percentage
of the home’s insured
value. If you have coverage for
$766,000 for example (Zillow’s
median value for a home in
Coral Gables) and have a 5
percent hurricane deductible,
that translates into a $38,300
deductible. Also keep in mind
that flooding is not covered
under your homeowner’s policy,
and that you may want to consider
a comprehensive umbrella
policy if you are a high networth
family with additional
liability exposure.
Protect your documents:
It’s important to keep a digital
backup of all important documents
and a printed copy in
a secure, fire and water-proof
container. Important documents
include copies of ID’s,
social security cards, birth certificates,
passports, insurance
policies, mortgage deeds, car
titles, estate plans, health care
proxy and durable power of
attorney, among others. These
documents will help you verify
your identity and ownership of
assets if necessary.
Protect your business:
Ensure you have a continuity
plan for your business that will
include information about your
employees, vendors and suppliers.
The City of Coral Gables
website offers several useful
checklists and surveys on hurricane
preparedness for your
business. A well drafted continuity
plan for disaster recovery
will not only keep you, your
staff, and your customers safe,
it will also help you and your
business recover promptly and
minimize any loss of income or
sales. Your city and community
will thank you for it.
Financial preparedness is
an essential part of hurricane
season and a comprehensive
financial plan should always
provide for unforeseen events.
A few simple steps now can
help prevent financial headaches
later.
74 thecoralgablesmagazine.com