Disaster's Donut Hole

Disaster's Donut Hole

Understand what can hit you.

Following up from the last couple of weeks, we wanted to talk a little bit about the idea of the "donut hole of disaster," or where many folks unfortunately fall through in community-level disasters.  This post is a cautionary tale to make sure that you have a robust personal preparedness plan...that is adequately backstopped with appropriate insurance products.  When you have a "single family disaster" (home fire, heart attack, job loss, etc), the reliance for recovery is largely on you, your insurance company, and those in your immediate circle (church, relatives, friends, neighbors, etc).  Typically, the recovery from these sorts of incidents is fairly straightforward, particularly since you're not competing with other builders, lack of temporary housing, community-level clean-up, or much in the way of bureaucracy.  You utilize your insurance products and work through the steps of recovery.  

Practice ahead of
time.

In the mega disasters, there are typically many partners that show up in the "media interest phase" - FEMA, state agencies, local first responders, VOAD (Voluntary Organizations Active in Disasters - think faith-based and non-profit groups).  At some point, these people ride off into the sunset...and your recovery to a "new normal" continues.  In the early phases of the incident, your main focus is the immediate life safety items like Maslow's Hierarchy - connecting with loved ones, getting a roof over your head, addressing medical/food/water needs, and so forth.  In this phase, hopefully, you've got an emergency fund and/or a plan, e.g., "we'll drive to grandma's house and bring all of our food."  Also, in this phase, time is of the essence, and getting away from the hazard/avoiding it through evacuation is usually the ideal move.  

Build a team that works
together.

Note: even if FEMA assistance arrives (which is no guarantee - there are a series of "if" gates that all have to swing in your/the disaster's favor), the assistance comes in the form of low-interest loans and limited financial assistance.  Additionally, if you're un-(or under) insured and do have a catastrophic loss...you still owe your mortgage.  In many cases, your insurance payoff makes the bank "whole," not necessarily buys you a new house.  It's also important to remember that with housing appreciation, you can fairly quickly and easily get behind and become "under" insured.  It's important to periodically check back in with your insurance company to ensure your coverage matches your home replacement cost.  Lastly, there are disasters that are often not included in your insurance coverage - the main ones are flood, earthquake, and terrorism.  This means you need a separate, specific rider on your policy.  

Have a backup plan.

As you're thinking through the disasters that could hit your community, it's important to pick a solid insurance company.  There are horror stories in disaster recovery of a deep bureaucracy and a ton of finger-pointing in a mess of resources that you have to navigate.  In an ideal situation, you'll have an insurance company that is responsive and coverage that not only helps with your rebuild...but also your living situation (e.g., hotels, rental, etc) while you're rebuilding.  For many large-scale disasters...plan on months (or even years) before your house is put back.  This means that you need to have thought through what you'll do if the "big show" becomes a home game...before you're on the proverbial field.  

Make the most of the 
crisis situation

In many of the big disaster situations in recent years (Marshal Fire, Paradise Fire, Lahaina Fire, Malibu Fire(s)), the competition between builders, permitting processes, wide-scale clean up, and other factors have significantly slowed down the recovery and rebuild processes.  The families involved still have to think through things like where they work, where their kids go to school, what the community looks like, church, etc, when they may be displaced miles of commute from where life was pre-disaster.  Part of the solution to this problem...should you become impacted...is having a solid support structure and community that wraps around you and your loved ones.  

Keep your eye on 
the horizon.

If the disaster isn't so widespread as to necessitate FEMA assistance (think the small neighborhood flood or small tornado), the patchwork of state recovery programs is pretty varied.  Some states have an Individual Assistance (IA) type program, similar to FEMA.  Others (most others), there are well wishes, technical assistance, and not much else.  In those cases, the donut hole, you're left to your own experience in navigating the clean-up and recovery/rebuild processes.  There are documents like FEMA's EEFAK, the American Red Cross suite of products, and others that can help set you up for success before a disaster.  But...the main point...have adequate insurance that is from a company that isn't necessarily the cheapest...but has a reputation for leaning in to help out their customers.  And...build your community.  Lean into the neighborhood, volunteer at your church, and so forth, so that if and when a disaster strikes, you're not solo but rather can lean in when you (and those in your tribe) need it most.  As we depart, you're trying to avoid the "that sucks to be you...hope you had insurance" when disaster strikes.  Take time to plan ahead today. 

What are some donut holes that are in your family?  In life?  Places where rules let the middle fall through? 

With you in the arena, from ours to yours...Happy Trails!

Call to Action: 

• Pick out three things that you can do this week...and do them - call your insurance to ensure it's adequate, write out the phone numbers you'd need in an emergency, etc.  
• 1 - ___________________ 
• 2 - ___________________
• 3 - ___________________
• Discussion: Consider what you/your family could/would/should (level of commitment) and start/stop/sustain (action) in terms of your disaster preparedness...after you watch some of Peter's incredible content (below) and his whole channel in general, incredible storyteller and channel!

Further Reading, Motivation, and References:

- Peter Santenello - Hurricane Helene Recovery

- Peter Santenello - LA Fires

- Peter Santenello - Lahaina Fires