April 2, 1998

Financial survival requires clear head and preparation

Surrounded by damage and destruction, crisis survivors must try to think clearly about immediate finances and insurance claims. Jean Bauer, Professor at University of Minnesota Family Social Science says people should look carefully at their financial priorities.

To financially survive a crisis, try to:

• Cut back on spending as much as possible.
• Use insurance money for repairs, not to pay day-to- day expenses.
• Use cash reserves if you have them. Rebuild your reserves when the emergency passes.
• Discuss financial decisions with your family and try to make difficult decisions together.
• Borrow against your assets.
• Liquidate assets.
• Barter repair work with neighbors and relatives.

When preparing for disaster-related insurance claims, keep accurate records and take photos of the damage before clean up. Do not sign a "proof of loss" form or accept a check which says "full, final and complete settlement." Once your property is repaired or replaced, there may be additional expenses for which you are entitled to reimbursement.

Source: University of Minnesota Extension Service
Editor: Kathleen Cleberg, University of Minnesota Extension, phone: (612)624-3259, kcleberg@extension.umn.edu

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