"Dealing With Disaster" - Part 2: Coping In A Crisis
Wednesday, March 23, 2005SUSIE GHARIB: When dealing with disaster, it`s good to be prepared, if you can, beforehand. But it`s in the aftermath of trouble that key decisions really matter, and making the right decisions is tough. As we continue our series "dealing with disaster," Diane Eastabrook looks at how you can learn to cope in a crisis.
DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: For disaster victims, the calm after the storm can be the most physically and emotionally taxing phase. It begins with clean-up and damage assessment.
RON CARPENTER, HOMEOWNER: It damaged siding. It damaged the awnings. It broke windows in the front, broke windows in the kitchen.
EASTABROOK: Ron Carpenter knows how difficult picking up the pieces after a disaster can be. Last April, a violent tornado ripped a destructive path through tiny Utica, Illinois, killing eight people and causing millions of dollars of property damage. Carpenter says his first thoughts were of being grateful that he survived the storm. His next thoughts were of cleaning up the mess it caused. Did you try to do anything to clean up or repair afterwards?
CARPENTER: Oh yeah, clean up the glass of course. I didn`t want somebody stepping on glass, and I got the glass cleaned up on the porch.
EASTABROOK: Today, there are still reminders of the deadly storm around town. The twister did $20,000 of damage to Carpenter`s home, but he has only pictures to prove it. Within a few months of the tornado, his house was nearly as good as new.
CARPENTER: Just make sure you have a good working relationship with your insurance agent. That`s going to help a lot right there.
EASTABROOK: Experts say the right steps taken after a disaster can be crucial. The first order of business is to make sure you and other family members are safe. Second, gather essential information such as insurance policies, bank statements and other financial documents. And don`t forget to take any cash on hand or credit cards. Third, contact your insurance agent, so he or she can start assessing damage and help you file a claim. That should be done within 24 hours of the event. To prevent further property damage, State Farm agent John Pini also advises clients to make minor repairs immediately.
JOHN PINI, AGENT, STATE FARM INSURANCE COMPANIES: If there was a hole in the roof, we asked them to try to find a carpenter, a local carpenter to tarp it and so forth.
EASTABROOK: Once an insurance claim is filed and repairs can begin, the next task is finding a contractor to do the work. While some agents do provide lists of area contractors, they can`t dictate who you can use. For your own protection, experts say it`s a good idea to use a contractor who is bonded. Also, get a written agreement that spells out when the work should be finished and what materials will be used. Pay with a check or credit card; don`t use cash. If your insurance policy has a large deductible, many contractors will require you to provide proof that you can cover the deductible.
JOHN EAGER, PROPERTY CASUALTY INSURERS ASSN. OF AMERICA: Proof of payment could be a credit line. It could be a balance in your checking account. It could be a letter from your bank saying that you have funds available to cover that sizable deductible in the first portion of your damage.
EASTABROOK: For businesses, the first steps following a disaster are similar to those taken by homeowners, but businesses also need to find temporary space and additional funding to keep their operations running throughout the repair process. If traditional insurance doesn`t cover everything, the Small Business Administration can help with loans that provide up to a $1.5 million for property damage. The SBA can also provide an additional $1.5 million in loans for economic injury.
JUDITH ROUSSEL, DIR., SMALL BUSINESS ADMINISTRATION: A business must be able to present financial information that will substantiate the loss and that would be things such as a listing of the kinds of expenses and the amounts that they would normally incur.
EASTABROOK: Many people go through one disaster only to encounter another in the reconstruction process. But being careful in choosing and doing business with contractors is one of the most important lessons for anyone who`s trying to rebuild. Diane Eastabrook, NIGHTLY BUSINESS REPORT, Utica, Illinois.
