In the vault
Posted on Tuesday, December 27, 2005
URL: http://www.nwanews.com/adg/Style/140850/
One lesson many survivors of hurricanes Katrina, Rita and Wilma may have had to learn the hard way is the importance of organizing and preserving — but keeping portable — your personal and legal documents.
In the wake of a natural disaster — hurricane, tornado, fire, flood or earthquake — do you know, and more important, can you lay your hands on in a hurry, what you might need to apply for insurance, for government assistance ?
Putting your life back together is never easy, but having vital documents, including birth certificates, marriage and / or divorce papers, Social Security documents, proof of insurance, even receipts for major purchases, within reach can help cut down on the stress and frustration.
You have to keep your documents safe, but it’s also a good idea to make sure you can get to them quickly in case you have to evacuate in a hurry.
Residents of the Gulf Coast, particularly storm-hit areas of Mississippi where entire towns were wiped out, also learned the hard way that even safe deposit boxes aren’t safe when the bank that stores them blows away or is reduced to rubble.
Bill Scholl, president of First Security Bancorp, says the safest repository for your personal documents is still in a safe deposit box as long as it’s in a bank vault.
“Back in the ’ 50 s, Judsonia had a tornado go through, and the entire town was wiped out — except for the bank vault,” he says.
“And even in case of flooding, unless you open the vault, everything stays pretty dry. I can’t think of any place you can put things that’s as safe as a safe deposit box, in a vault, in a bank — that’s your best bet.”
“Natural or other disasters can strike at any time, anywhere, leaving behind devastating destruction and financial loss,” says William L. Anthes, president of the Englewood, Colo.-based National Endowment for Financial Education, a nonprofit organization committed to educating Americans about personal finance.
Coloradans don’t worry much about hurricanes, but they, like Arkansans, do see tornadoes.
“We all know intuitively that we should organize our records and keep them in a safe place in case the unthinkable happens, but it’s so easy to put off the job,” Anthes says on the endowment’s Web site, www. nefe. org / news / news 070103. html.
“However, compared with the time and effort required to reconstruct lost records, it’s far simpler to take a few hours to organize important documents before there’s a problem.” SAFE FIRST, THEN PORTABLE
Working with the American Red Cross, the Federal Emergency Management Agency and the American Institute of Certified Public Accountants, the endowment in 2003 posted these suggestions from Anthes on the Web site :
“Store the original versions of records that would be difficult to replace in a safe deposit box at a bank. Rental is about $ 30 a year.”
However, “Consider using a bank that is some distance from your home to lessen the chance that both your house and the bank would be affected by the same disaster.”
“Try to do your off-site storage outside the region of greatest vulnerability,” says Brent Neiser, the endowment’s director of collaborative programs. “If you live in a flood plain or hurricane area, use a branch of the bank sufficiently inland.
“ Consider this especially if your home is subject even to normal disasters — for example, if you’re near train tracks where there could be a chemical spill or a potential explosion.”
Records the endowment suggests you put in a bank safe deposit box include : Birth, death and marriage certificates Adoption papers Passport Military records Social Security card Mortgage / property deeds Car titles Insurance policies (life, health, disability, long-term care, auto, homeowners, renters, etc. ) Trust documents
“Next,” says Anthes, “make copies of all the records [and place them ] in a fireproof box that you keep at home and can obtain quickly in the event of an emergency. Put it in a place that would be easy to get to if you suddenly had to evacuate.
“ You also may want to send photocopies of vital records to an out-of-town friend or relative, as well as to anyone named in a document, such as a trustee or a beneficiary.”
Consider keeping your will, power of attorney, living will and other medical instructions in your evacuation box.
“Some people keep these documents in a safe deposit box, but if the individual dies, the bank may seal the box temporarily,” Anthes notes. “For that reason, it may be best to keep them at home.”
“I’ve given a letter to my kids, in case anything happens to me,” Scholl says, telling them where he has stored vital documents and how to access them. “That way your physical assets are protected, and someone else can come and [bring about ] a recovery if they need to.” Frank D. Edens, chief executive officer of U. S. Legal Forms, says it’s a good idea to create a legal file even if you’re not preparing for a disaster. “Creating a legal file can not only help in pursuing legal affairs and getting past major disruptions and disasters,” he says. “They are also an invaluable way to record and communicate important decisions about
end-of-life
care, including making sure loved ones are fully apprised of what is desired and what is not.” U. S. Legal’s Web
site, www. uslegalforms. com / life-documents. htm, also provides information on how to replace documents lost or destroyed. MAYBE YOU’LL NEED... Other records you might consider keeping in an evacuation box, according to Anthes : State and federal income tax returns (all of them if you
have room ;
if not, at least keep the most recent one in the box ) Home improvement records Copies of important medical information, including health insurance card, doctor’s name and phone number, prescriptions and immunization records Warranties and receipts for major purchases Appraisals of jewelry, collectibles, artwork and other valuable items Credit card and retirement account records A recent checking, savings and investment account statement Rental agreement and / or lease A recent pay stub and employee benefits information List of emergency contacts, including doctors, financial advisers and family members Backup disks of critical computerized information Safe deposit box information (location, contents and key )
In addition, Anthes recommends making a list of your possessions, such as appliances and electronic equipment, including model and serial numbers, so you can estimate their value for insurance or tax purposes if they are damaged or destroyed in a disaster.
“Put one copy of the list in your evacuation box and another in your safe deposit box. Receipts, if they are available, provide even better proof. Computer software programs are available to help you with a home inventory.” (The Insurance Information Institute has one you can download for free, called “Know Your Stuff — Version 2. 0.” It’s available at www. knowyourstuff. org. )
“Consider taking photos of your possessions or videotaping them,” Anthes advises. “Don’t forget to photograph your property’s exterior, your vehicles and the contents of your garage, closets and attic.”
EMERGENCY SUPPLIES Anthes says you should also keep in your emergency evacuation box a small amount of cash and / or traveler’s checks in case a disaster closes your bank for several days. Consider including a few rolls of quarters in case pay phones work and your cell phone doesn’t or is lost. “Once or twice a year, go through your safe deposit and evacuation boxes to make sure everything is up to date,” Anthes says. They also don’t get hurricanes in West Covina, Calif., a Los Angeles suburb where wildfires and earthquakes are the disasters to prepare for.
The West Covina Fire Department notes on its Web site, www. westcov. org / fire / home. html, that you should consider putting copies of vital documents in a fireproof storage box or safe deposit box, or in your freezer (first, “make sure you tightly seal documents in a freezer bag” ), as well as sending copies to an outof-state contact.
In addition to the documents Anthes lists, the department also suggests keeping copies of : Drivers’ licenses Credit card numbers, or photocopies of the actual cards Mortgage or rental receipts Stocks and bonds Savings and checking account records Documentation of valuables, including computers, televisions, stereo equipment, jewelry, fine art, cars and cameras ; “video or photo documentation will facilitate insurance claims.” Health history, including information about allergies and blood types Recent photos of family members for identification purposes.
The Red Cross — www 2. redcross. org / services / disaster / beprepared — suggests that if you do plan to keep your documents at home, “at the very least, buy a safe that can withstand temperatures up to 1, 700 degrees.”
“If possible, place the safe in the basement to decrease the risk of it falling through the floor in the event of a fire.
“ Be sure to keep the safe locked at all times, and tell someone you trust where you keep the key or combination to the safe.”
The Red Cross also suggests a fire-resistant, waterproof box for your portable “disaster supplies kit” ; store it in a place that is easy to get to if you suddenly have to evacuate.
Other helpful tips : “When you take photos of your possessions or videotape them, remember to include your property’s exterior, your vehicles and the contents of your garage, closets, and attic,” the Red Cross advises. “Don’t forget inexpensive items as well as precious belongings.
“ If you’re videotaping, audibly describe the item, when you bought it and how much it cost. Finally, get a professional appraisal of jewelry, collectibles, artwork or other items that are difficult to value, and update the appraisal every two or three years. There are professionals who will videotape your possessions for a reasonable fee ; ask your insurance agent for a referral.”
One other tip from the Red Cross : If you ever do experience a disaster, keep a written record of events to help substantiate your expenses and losses to the insurance adjuster.