This hurricane season does not look good. Early predictions call for above-normal activity, including four major hurricanes among the 17 named storms. Forecasters at Colorado State University say there are better-than-even odds that at least one hurricane will strike Florida, and a roughly one-in-three chance it will be a major one.
What else should you do besides stock up on essential items? Establish an emergency fund. Tropical Financial offers Basic Savings, Savings Club, and Money Market accounts with higher interest rates, where you can park your cash before the storm.
Here’s why you need a fund for that very rainy, very windy, maybe dangerous day:
Living expenses: You will need to pay for the basics such as rent or a mortgage, groceries, and utilities if a hurricane puts you out of a job, your business closes, or you must temporarily move out because of damage to your residence or community. You will need the money on hand to cover those bills.
Initial repair costs: Deductibles on Florida hurricane insurance policies range from 2% to 10% of the insured value. Some losses, such as personal belongings and minor repairs, may not be covered at all. Tap your emergency fund to replace damaged clothing, furniture, and other essentials and to start paying toward your insurance deductible.
Evacuation expenses: If you live in an evacuation area or your home becomes uninhabitable, the emergency fund can cover hotel stays, gas, food, and other travel expenses that may not be reimbursed by insurance or government aid.
Quick cash access: When a hurricane knocks out power and internet service, many businesses cannot accept electronic payments. Tropical Financial is connected to several ATM networks. These include Publix, whose stores all have generators that power cash machines. Cash will be vital to purchasing essential items and paying for emergency services such as repairs.
Claims delays: It could take weeks or months for your insurer to process your claim or for a government agency to deliver financial assistance. In between, you will have non-hurricane-related expenses such as credit card, education and medical bills, health insurance premiums, and personal loan repayments. An emergency fund will ensure that you can meet those obligations.
Credit card Debt: Don’t have an emergency fund? You may have to charge most of your living expenses and repairs. High annual percentage rates on credit card balances – 20% or more, says Bankrate – will put you even deeper in debt. Savings from a Tropical Financial account can minimize or even eliminate the need to put expenses on your plastic.
Peace of mind: You can’t stop a hurricane. You can prepare for it. You will feel better during an emergency knowing you have the funds to meet a crisis head-on and quickly recover from it.
