Hurricane season is here for many parts of the U.S. With Hurricane Florence not far in the past and still recovering from Hurricane Michael, it’s an important reminder to take stock of your assets and develop a plan in case of emergency. Emergencies include, but are not limited to, natural disasters, illness, or accidents. Rudler professionals created a list of tips to prepare your own emergency plan:

Have an emergency fund.

This is the best piece of advice out there to prepare for the future. Having an emergency fund in place will help you cover expenses in a worst-case scenario, such as losing your job or taking time off due to an accident. Estimate what your cost of living is for three to six months in order to be properly prepared. 

Understand the risks of tapping into your retirement.

Some 401k or IRA plans let you borrow from your retirement account as a loan. If you absolutely must, understand the risks associated, which include paying back interest or triggering an additional tax. Check with your plan’s administrator to understand all of the benefits and risks. 

Have insurance.

Having insurance to protect you and your family is important. Some various types of insurance include car, renters, house, health, life, and disability. While you don’t need all of them, it’s a good idea to have the basics to cover you if your car is stolen, home is destroyed in a natural disaster, or someone in your family becomes ill. 

Have credit available.

While this might sound odd, having good credit will allow you to use it in an emergency for big purchases that you might need in order to get back on your feet. 

Have a backup of your financial and identity documents.

The National Archives recommends following the 3-2-1 rule: make three copies, stored on two different media, with one copy located at a different physical location. The most efficient way to create a copy to store at another location is to use a professional cloud storage backup service. They can also use enterprise-strength security measures to keep your documents safe. 

Preparing for the unexpected today can help keep you and your family safe. Knowing that you have some room in your finances to accommodate for an emergency can make it less scary if the unexpected strikes.