Build Your Financial Survival Kit Before It’s Too Late

The 2025 Atlantic hurricane season begins June 1, and forecasters expect it to be unusually active. Colorado State University meteorologists forecast 17 named storms, including nine full-blown hurricanes, by the end of November. Now is a good time to get financially prepared. Put together this financial survival kit to help protect your money if a storm hits. 

The Essential Components of Your Financial Survival Kit

Hurricanes can be daunting, but you can protect your finances by updating your insurance, making a detailed home inventory, gathering essential documents, stockpiling some cash, and knowing where to get help in advance.

Review Your Homeowners Insurance

Homeowners insurance usually covers hurricane-related wind damage to your home structure (via dwelling coverage) or personal belongings (via personal property coverage). It may also cover hotel, meals, and living expenses if you can’t return home after a storm. However, you may have to meet a separate hurricane deductible before coverage begins. 

It’s important to understand your homeowners coverage, especially the type of policy you have and how much it will pay if your home is damaged. Coverage amounts depend on your policy type:

• Actual cash value (ACV): Pays for your home and belongings minus depreciation, which means you get less money for older items
• Replacement cost value (RCV): Covers the full cost to repair or replace your home with new materials, without subtracting for age or wear
• Functional replacement cost (FRC): Also skips depreciation, but only pays for materials that do the same job, even if they’re cheaper or not the same quality 

Before hurricane season, carefully review your policy limits, coverage types, deductibles, and exclusions to ensure you have sufficient coverage.

“With the inflation we’ve seen over the last few years, it would be good to review your dwelling limit with your agent if you haven’t done that recently,” said Greg Martin, president of Think Safe Insurance in Brandon, Florida. “Construction prices change, and we’ve seen that some policy limits haven’t kept up with the increased costs.”

Consider Flood Insurance

Standard homeowners insurance excludes hurricane-related flood damage. Flood coverage requires a separate policy or endorsement.

Mortgage lenders often require you to carry flood insurance when you live in a designated high-risk area. Still, coverage is worth considering, even if your home isn’t in one of these zones.

“So many non-flood zone homes were damaged and destroyed last year,” said Stacy Miller, a certified financial planner (CFP) and founder of BayView Financial Planning in Tampa, Florida. For instance, 78% of the properties affected by 2024’s Hurricane Debby were outside a Federal Emergency Management Agency (FEMA) flood zone.

You can purchase flood insurance from a private insurer or the National Flood Insurance Program (NFIP).

“Be aware that there is a waiting period for most flood policies,” Martin said. For NFIP plans, waiting periods are typically 30 days, while private flood insurance takes effect in 10 to 14 days.

Complete a Home Inventory

A home inventory is an extensive list of your personal property and each item’s estimated value. It’s a good idea to complete one ahead of hurricane season, “so you have documentation if you have a claim,” Martin said.

Home inventories also help you assess how much insurance you need, and come in handy when trying to qualify for disaster aid or tax relief.   

A good home inventory includes video, receipts, purchase dates, purchase prices, makes/models, manufacturers, and serial numbers.

Secure Documentation  

FEMA suggests that households prepare a portable emergency supply kit in case of evacuation. Recommended items include essential family and financial documents, such as “insurance policies, identification, and bank account records saved electronically or in a waterproof, portable container.” 

Make digital copies of important records and store them in the cloud so you have access after an evacuation, said Jennifer Gambill, client advisor at World Insurance Associates in Miami.

“After a storm, keep in mind that law enforcement officials may restrict access to your neighborhood due to safety concerns, so you’ll need to ensure that you have proof of household identification,” Gambill said.

Have Cash on Hand

Hurricanes often cause power outages, so “keep cash on hand for purchases” in case electronic payment systems fail, said Casey Brueske, community education development specialist at PenAir Credit Union.

FEMA recommends keeping cash in your emergency kit and limiting it to small bills ($1 through $20). That way, you won’t have to worry about finding change during a disaster. 

Identify Aid Resources Ahead of Time

Federal resources include:

• FEMA: Provides housing, child care, transportation, burial, and other financial assistance to displaced individuals following a natural disaster
• The Small Business Administration (SBA): Provides low-interest disaster loans to qualified business owners, homeowners, renters, and nonprofit organizations
• The Internal Revenue Service (IRS): Can postpone tax filing and payment deadlines once the president signs an emergency declaration
• The Department of Education: Can pause or reduce student loan payments for borrowers in federally declared disaster areas

You can identify additional local resources, including open Red Cross shelters, on FEMA’s disaster assistance website.  

The Bottom Line

Hurricane season is stressful, especially when forecasts predict 125% higher-than-average activity for tropical storms. Protect your financial well-being in advance to ensure you can focus on your physical well-being if disaster strikes. A robust financial survival kit includes adequate homeowners insurance, flood insurance, a home inventory, cash, and important documentation, such as identification and proof of insurance. Before the season begins, prepare a list of vetted federal and local resources, too.