Leave a Paper Trail in Case of Natural Disaster

Whenever we hear or read about natural disasters, we usually focus on the physical impact. How many lives were lost? How many houses destroyed?

But after the media attention diminishes, those who have suffered through the disaster must get on with their lives. There are the obvious psychological adjustments that follow the death of loved ones, the loss of a home or a job, but there are also other realities: insurance claims, lost papers, missing stock certificates or bank passbooks and unpaid bills.

Lawyers are trained to plan for the worst--that may be one reason they are not much fun at cocktail parties. They learn to think of all the horrible things that can happen, and then they prepare contracts or legal structures that account for every contingency they can foresee.

So, in that lawyerly spirit, here are some things you can do to make sure you’ll be ready to handle the more mundane problems of a disaster.

Store important legal documents in a safe place--perhaps even in a different community. If they are destroyed in a fire, it will be a nightmare to re-create some of them--it won’t be impossible, just time-consuming. Some documents should be copied and put away for safekeeping: the deed to your home or other real property; the title insurance policy on your home or other real property; your will, trust or other testamentary documents; a power of attorney (this is the document that appoints someone else to act on your behalf); a power of attorney for health care (the document that appoints someone to make medical decisions for you if you are incapacitated), and your birth certificate.

Many experts advise having an out-of-state contact for all family members to call in an emergency. It also might be a good idea to send that person the copies of your important documents.

You should develop a list of your important assets, including an adequate description. (This is good planning anyway. Such a list might come in handy if your home is burglarized and you need to make a claim to an insurance company.) Be sure to include the policy and account numbers on insurance policies, money market funds, credit cards and passbook accounts on your list. If you lose the originals and have to re-create the paper trail of your life from scratch, it will be much easier if you know the account numbers.

If you store copies of documents in a special place, make sure you’ve told someone where they are and how to obtain access.

You should also review your policies to be sure you’re covered in the event of a disaster. Remember, earthquake insurance requires a separate policy from the standard homeowner policy.

After any disaster, try to develop proof of its impact on you. Take photos of your property; record the date, time and place the pictures were taken, and write summaries of what happened, who was present and other pertinent information.

If there was damage to your property and you have insurance, contact the company or broker. You can call first, but a written record is key.

You may find that the disaster affects your ability to pay your bills. If so, seek an extension of time in which to pay your obligations. Explain your situation and try to work something out, perhaps even a payment schedule to begin when you get back on your feet.