The recent Palisades fire and other devastating wildfires across Los Angeles County have once again highlighted the catastrophic impact these disasters can have on communities. With thousands of residents forced to evacuate, hundreds of homes threatened or destroyed, and tens of thousands of acres burned across the region, these disasters serve as stark reminders of the importance of wildfire preparedness.
For Southern California residents, wildfire risk is an unfortunate reality we all must face but with proper financial and emergency planning, you can minimize potential losses and protect what matters most. Planning ahead isn’t only about physical safety — it’s about ensuring your financial security stays intact when disaster strikes.
The Importance of Financial Emergency Preparedness
Living in California means accepting that your family and home can be impacted by wildfires, earthquakes, and other natural disasters with little warning, making financial readiness a vital component of your overall emergency plan. Taking proactive steps now can save you significant stress and financial hardship later.
- Establish an Emergency Fund: Maintain a dedicated emergency fund with three to six months of living expenses readily available. Having emergency savings helps ensure you’ll have funds available for temporary housing, food, transportation, and other urgent needs in the aftermath of a fire or other type of disaster.
- Review and Update Insurance Policies: Having the right insurance coverage is an essential part of financial planning for a disaster. Standard homeowners insurance policies may not fully cover wildfire damage, especially in high-risk areas. Review your policy carefully to understand your coverage limits and deductibles, and consider purchasing supplemental policies if needed, such as specialized fire insurance that specifically covers property damage or loss due to fire. If you have your home in a trust, make sure to add the trust as an additional insured on your policy to avoid delayed payments or denied claims.
- Safeguard Important Documents: Store copies of financial documents and personal records in waterproof, fireproof containers. Include personal identification (i.e., driver’s licenses), insurance policies, property deeds, birth certificates, passports, Social Security cards, marriage certificates, vehicle titles and registrations, medical records, and recent tax returns. Consider storing copies in another location and keeping digital copies in the cloud for easy access if physical copies get destroyed.
The Importance of Fire Preparedness
Beyond financial planning for a disaster, creating and implementing a thorough fire safety plan can significantly reduce risk to both life and property.
- Protect Property: Create defensible space around your home by clearing dry vegetation, removing flammable materials from under decks and porches, and keeping gutters free of debris. Start at your home and work your way out 100 feet or to your property line (whichever is closer). Consider fire-resistant landscaping and building materials when making upgrades.
- Develop an Evacuation Plan: Create and practice a family evacuation plan that includes at least two escape routes from each room, a designated meeting point outside your home, and emergency contact information. Make sure all family members are familiar with the plan, especially children and those with limited mobility.
- Prepare Emergency “Go Bags”: Assemble a “go” or “bug out” bag for each family member with necessities in case you need to evacuate quickly. Include items like a change of clothes, medications, water, non-perishable snacks, a flashlight, batteries, portable phone chargers, basic toiletries, and copies of identification documents. Don’t forget supplies for pets, including food, leashes, and portable water bowls. Keep emergency bags easily accessible and update them periodically, making sure medications haven’t expired and children’s clothing still fits.
- Community Collaboration: Get involved in neighborhood fire preparedness efforts and stay informed about evacuation routes and emergency notification systems. Participate in community fire drills and education programs offered by local fire departments.
- Minimize Financial Losses: Document your belongings with photos or video for insurance purposes, including details like model numbers, purchase dates, and approximate values. The more specific information you have about your possessions, the easier and more successful your insurance claims will be after a fire. Store valuable or irreplaceable items in fire-resistant containers, and consider automatic sprinkler systems for added protection. For business owners, develop a business continuity plan to minimize downtime.
What to Do After a Fire
If your home or property is affected by a fire, safety comes first. Once your loved ones are safe and the immediate emergency has passed, it’s time to tackle your financial recovery.
Start by contacting your insurance company as soon as possible to begin the claims process. Document all damage with photos and written descriptions. Keep receipts for all fire-related expenses, including temporary housing and repairs. Create a post-fire budget to track recovery expenses and prioritize financial obligations like mortgage payments, which continue regardless of your home’s condition.
During this challenging time, professional financial guidance can help you maximize insurance settlements, identify tax deductions for disaster losses, restructure debt if needed, and properly allocate emergency funds without derailing your long-term financial goals. At Blankinship & Foster, our financial planning services include disaster recovery strategies to help you rebuild your home and your financial security.