Financial resilience is about more than just having money in the bank; insurance is a financial safety net. When you have the right coverage, it helps you and your loved ones’ during recovery.
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. The 2023 Survey of Albertans shows only 55% of those surveyed have adequate insurance and 38% have an emergency fund.
Help build your financial resiliency with these tips:
• 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 like a power outage 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.
• Reduce cyber 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 ensure you understand what your policy covers, and more importantly, what it doesn’t cover. And use your annual policy renewal as a reminder to check that 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. Make sure to keep all receipts from expenses incurred during an emergency and know the 3 steps for making a home insurance claim.
Be Prepared tip: Preparedness is often associated as being a high-cost activity; but in reality, being unprepared is costlier. To help address the barrier of costly preparedness actions, break preparedness down into bite sized steps. Encourage it as a habit, something that is worked into day-to-day lives and built over time.
Take one minute to watch this video and visit alberta.ca/BePrepared to learn more.
