Nearly one in three Americans had not taken any financial steps to prepare for a natural disaster, according to a recent Harris Poll conducted for the American Institute of CPAs (AICPA).
The survey found that 32% of US adults were financially unprepared, even as 66% said a natural disaster would have a major or moderate impact on their finances.
“Many Americans don't think about their finances when it comes to preparation for a natural disaster. However, financial needs become front and center after the destruction has already taken place,” said Eva Simpson, vice president of member value, tax & advisory services at AICPA. “Disaster preparedness when it comes to finances can go a long way to mitigate the financial toll and help people and businesses recover.”
Among those who had taken action, the most common steps included reviewing insurance coverage and creating an inventory of possessions. Fewer said they had updated or created a will or estate plan.
Business owners also reported concern over the potential financial impact of disasters. Sixty-three per cent (63%) said they were either very or somewhat worried about the consequences of a major loss. Top concerns included lost revenue due to business closure, loss of customers or contracts, and damage to property or inventory.
Despite those concerns, the findings indicated that many businesses had not yet implemented comprehensive disaster recovery strategies. Simpson emphasized that financial preparation could reduce disruption and support recovery efforts after an event.
The AICPA advised individuals to establish emergency savings, review their homeowners, renters, and auto insurance policies, and store key documents, such as identification, wills, and property records, in a fire- and water-resistant safe or safe deposit box. Creating an inventory of belongings using photos or video was also recommended.
For businesses, the guidance included setting up multiple communication channels, ensuring remote access to systems, backing up data off-site, and identifying alternate workspaces. Simpson noted that planning ahead could play a critical role in recovery.
