My home or apartment is damaged and temporarily uninhabitable. What should I do?

The following steps will help you get started:

• Seek emergency housing. Call the Red Cross, your county office of emergency management, or other local disaster-relief organizations to guide you to shelters and temporary housing. (Refer to the Finding Help for contact information.)

• Secure your property, if possible. If authorities allow you to enter your house or apartment briefly, remove valuables and important documents. If you can, make temporary repairs to prevent further damage, but avoid potential hazard areas until they are stabilized. The Red Cross or other organizations may be able to help you obtain materials for short-term repairs. Keep records of these repairs, because most insurance policies will reimburse you for the expense; or, if not, the expense may be tax deductible.

• Notify your insurance company of your loss and get advice about making emergency repairs. Ask the insurance company if it will pay for living expenses, such as a motel, food, and laundry, if you are unable to live in your home. The company may give you a check up front. Find out if this payment for living expenses will reduce the amount you ultimately receive for damages to your property or possessions. Tax note: Insurance proceeds used to repair or replace property are tax free in most cases; however, reimbursements you receive for living expenses may be taxable.

• Read Managing a Property Loss, which contains more information about taxes, contractors, and other issues related to managing a property loss.

• Contact the Red Cross, and if you are in a major disaster area, call FEMA. One of these organizations may be able to guide you to sources of emergency cash assistance. Tax note: You may receive emergency cash assistance from federal, state, or local government following the declaration of a disaster by the president, state, or local government. The money generally is not taxable.

• Ask your employer for an advance on your next paycheck.

• Use your credit card to get a cash advance. Be aware, however, that you probably will be charged interest immediately on the amount you withdraw, and the interest rate may be higher than for purchases.

• Stop some bills. If your residence is temporarily uninhabitable or totally destroyed, notify the utility company and other service companies, such as the phone company, so they can stop billing immediately. Often, a utility company will transfer service to a new address and waive initial connection charges.

• Estimate the amount of income and emergency savings you have to pay bills while you recover from the disaster.

• Prioritize your bills. For example, paying your insurance premiums and rent or mortgage should be a top priority.

• Call your creditors and ask for more time to pay. Most creditors will be willing to work with you, especially if you notify them before a payment is due.

• Contact a Certified Public Accountant (CPA) financial planner or other financial advisor to assist you in developing a financial disaster recovery plan.

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Employment

I'm injured and I cannot go back to work right away. What should I do?

• Notify your employer as soon as possible. Explain why you cannot return to work and estimate when you will be back. If you must take an extended leave, ask the employer how you can keep your employee benefits (especially your health insurance) in force. Inquire about emergency funds the employer may have for employees impacted by a disaster. Tax note: Payments from these funds are generally taxed as ordinary income.

• Ask your employer to begin the process of helping you apply for any available company-sponsored disability benefits if you cannot return to work because of a serious injury. (See Managing an Injury or Disability for more information about disability benefits.)

• Ask about workers’ compensation benefits and employer liability if the injury occurred on the job. These benefits can be substantial, so be sure to follow up.

• Take advantage of the Family and Medical Leave Act if you cannot return to work because you are caring for an injured family member. This law applies to companies with more than 50 employees and all public/government employers. It requires these employers to provide eligible employees with up to 12 weeks of unpaid medical leave a year to care for an immediate family member who has a serious health condition, with the guarantee that employees can keep their jobs and health benefits. More information is available through the U.S. Department of Labor’s Web site at www.dol.gov or at 1-866-487-9243.

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