Overview
Being financially prepared is about more than just having money in the bank. Insurance is a financial safety net; the right coverage will speed up the recovery process.
Preparedness is often perceived as a high-cost activity; but being unprepared is costlier. Consider preparedness as a habit that is woven into our daily lives over time – breaking it down into bite-sized steps removes barriers such as cost and time.
How to create financial resiliency
- If possible, create an emergency savings account to cover expenses during an emergency or for insurance deductibles if making a claim.
- Keep cash on hand in case banking services become unavailable during disruptions and enroll in automatic direct deposit for sources of income such as benefits or payroll.
- Gather important and hard to replace documents and identification and store hard and digital (USB) copies in a secure location, such as a safe. Create electronic password protected copies that you can access from anywhere.
- Learn about cybersecurity reduce risk by making it a habit to update passwords, back up data and ensure security software is up to date.
- Over time, build an emergency kit with items from your home and check thrift shops and dollar stores for deals.
- When looking to buy, rent, or develop property, avoid high-risk areas like floodways and fringes. You should also find out if a property has received disaster financial assistance in the past and learn the difference between emergencies and disasters to ensure you purchase adequate insurance.
- The Government of Alberta’s Disaster Recovery Program may be an option for recovery after a disaster but should be considered as a funder of last resort. It does not cover all types of damage, loss or the full cost of replacement. Visit disaster assistance and recovery support to learn more.
- Talk to your insurance provider to understand what your policy covers, and especially what it doesn’t cover. Use your annual policy renewal as a reminder to confirm your coverage is adequate, your detailed list of property is accurate and to take new photographs of your property.
- Know what type of assistance your insurance policy provides during an emergency and how to claim it if needed. Keep all receipts from expenses incurred during an emergency and know the 3 steps for making a home insurance claim, visit file a home insurance claim (Insurance bureau of Canada).
Videos
How can you be financially prepared for a disaster?
Emergencies and disasters can result in financial hardship and stress. Learn how to be better financially prepared for the unexpected.
How can you prepare for an emergency or disaster without spending a lot of money?
Start building your emergency kit with these basic supplies. What else would you add to your kit?