Are you financially prepared for an emergency?

Hurricane Sandy taught us valuable lessons about the need to be prepared for the unexpected. We know that the weather this time of year can be unpredictable and potentially hazardous.

Taking a few simple measures to protect yourself financially can make life a lot easier in the event that something unexpected occurs.

• Take inventory of assets — Knowing what you have is the best way to prevent confusion in the case of property damage and loss. Taking photos or video of your property and valuable belongings is a great way to keep track of everything and could come in handy in the event that you need to file an insurance claim.

Once everything is documented, you’ll want to be sure that the documentation is stored in a fireproof box and/or waterproof container, in a secure location within your home or at a separate location.

• Understand what your insurance covers — If your home or property is damaged due to inclement weather, are you protected? This could be a good chance to refresh yourself on what sort of insurance coverage you have. It is essential that your policies reflect the current state of your home and valuable assets.
• Establish an emergency savings fund — If you are among the 26 percent of Americans who have not put aside emergency savings, as reported by Bankrate.com, now could be the perfect opportunity to change that.

Having some funds reserved for an emergency of any kind is important and can be a big help in the case of unexpected damages and costs resulting from weather-related emergencies.

• Set up direct deposit & online banking — In the event of an emergency, you don’t want to get caught off-guard with limited access to necessary funds.

If you cannot access your accounts or a bank branch for any reason, having your pay checks set up with direct deposit ensures that funds are automatically and securely put into your account, and gives you the flexibility to access funds easily from many locations. Using online banking gives you the added flexibility of managing your accounts from a distance in an emergency situation.

Along with an emergency savings fund, it would be a good idea to always keep some cash on-hand on a regular basis, in case you find yourself in a situation without power or internet access, or are unable to get to a bank branch.

• Protect financial documents — Copies of personal and important financial documents should be guarded in the event of any kind of emergency, particularly natural disasters. In addition to backing up online versions of these documents, hard copies should also be protected in the event that you are without internet access for a prolonged period of time.

Consider using a bank’s safe deposit box services to store copies of birth certificates, social security cards, insurance policies and bank account information.

It is hard to be completely ready for any type of emergency, but by taking a few simple measures, you’ll be better prepared financially to survive a tough situation.

Mayra DiRico is director of retail banking, Astoria Bank.