How to protect your finances from natural disasters

Protecting what matters

Hurricane season may run June through September, but natural disaster season truly never ends.

According to the Federal Emergency Management Agency (FEMA), there were more than 80 major disasters in the United States from July 2024 through June 2025.¹ In September 2024, for example, Hurricane Helene triggered devasting floods in western North Carolina, causing nearly $80 billion in damages. In January 2025, Southern California wildfires destroyed 18,000 homes. In March 2025, a tornado outbreak devasted parts of the Midwest, killing 43.

With any natural disaster, the top priority is always getting out of harm’s way. But a secondary priority is protecting the financial security of you and your family. Yes, homes can be rebuilt and cars replaced, but you shouldn't have to jeopardize your retirement plans and other long-term goals.

Clarity recently spoke with TIAA Wealth Management’s Barbara Selig about how to stay financially safe before and after natural disasters. Selig, TIAA director and wealth management coach, is not only a veteran financial advisor, but also a long-time Floridian who has weathered multiple hurricanes.

Selig has five important tips when it comes to prepping your finances for natural disasters:

1. Review your insurance policies.

“Make sure you understand what damages insurance is going to pay for and what’s going to be paid out of pocket,” says Selig. Homeowners and renters policies may not cover wildfire damage if you live in a high-risk area. Homeowners policies generally don’t cover flood or earthquake damage—which is why purchasing separate flood or earthquake insurance may be wise if you live in a flood- or earthquake-prone region. Something else to keep in mind: If you don’t have comprehensive insurance on your car—if you have liability only, in other words—your auto insurer isn’t going to pay for repairs or replacement should your car get crushed by a wind-blown tree. Selig suggests purchasing add-on insurance, also known as a rider, for high-value items such as art, jewelry, and collectibles that may not be fully covered by standard policies.

2. Keep cash on hand.

“We’re a society that usually lives off plastic,” Selig says. “But if the power’s out or the credit card systems are down, the affected area becomes a cash economy.” That’s why Selig and her husband always keep $200 to $300 in cash—preferably in denominations of $20 or less—in their home safe. That way, they can always buy post-storm essentials such as food, water, and gas. And speaking of safes …

3. Get a fireproof and waterproof safe for your home.

“Keep it in an interior room, bolted to the floor,” she says. “A closet is usually the best place because it’s away from windows, which is usually where you get the worst storm damage.” In addition to storing cash in her safe, Selig advises using it for important documents such as passports, titles for home and cars, copies of health insurance cards and driver’s licenses, and information on your home and auto insurance policies.

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4. Take photos and videos of your home—and keep them safe.

Selig and her husband keep a complete inventory of everything in their house, from furniture to appliances, in their safe. That inventory includes still photographs of every room. Photos, videos, and inventories don’t necessarily have to be kept in a safe—they can also be securely uploaded to the cloud. No matter how you store them, it’s beneficial to have photos and videos when it comes time to file an insurance claim. “You need to be able to document your property and possessions,” says Selig.

5. Beware of scammers.

Natural disasters usually bring out the best in people. Neighbors help neighbors. First responders risk their own lives to save others. Unfortunately, natural disasters sometimes bring out the worst in people too. Fake charities proliferate in the aftermath of natural disasters.² Phony contractors steal billions each year, disappearing with homeowners’ money without doing the promised work.³ Fraudulent inspectors offer to help survivors file for FEMA assistance—only to apply for FEMA aid themselves using stolen names, addresses, and Social Security numbers.⁴ Selig’s advice: “Don’t respond to calls or emails from people you don’t know.” When it comes to hiring contractors, she advises getting multiple estimates, making sure contractors are licensed and insured, and checking them all out with the Better Business Bureau. “Most important of all,” says Selig, “if someone comes to your door, never ever give them money.”

Your advisor is here to help

Your TIAA Wealth Management advisor is here with advice to help you not only build and grow your wealth, but also protect it. Reach out to them for help in proactively addressing financial risks from natural disasters. Don’t yet have an advisor? Schedule an appointment.