With over 500 homes destroyed by Colorado wildfires, those affected are faced with the daunting task of getting back on their feet. The Financial Planners Association is seeking to relieve some of the stress by hosting free financial advice sessions for fire victims.
The next session will be on Saturday, from 9 a.m. to 2 p.m. at the offices of the Ft. Collins Coloradoan, 1300 Riverside Ave in Ft. Collins.
Mary Ann Heyman and William Reynolds, two certified financial advisors from Financial Design and Management Inc. are among those participating in the sessions.
On Friday, they shared their top tips for fire victims.
1. Keep a record of everything:
When filing a claim with your insurance company make sure you document every conversation and email including who you’ve talked to, what you talked about, time and date. Also keep any receipts related to being displaced from your home. Make a claim binder with all documents and if possible with pictures that document what you had in your house.
“When you have a place where there are a lot of claims going on, it gets overwhelming and details get lost,” Heyman said.
2. Don’t share your information:
Only share your information with sources you know. Make sure all the advice you are receiving comes from resources like the Red Cross, the fire departments or your insurance company.
“I definitely wouldn’t share personal information,” Reynolds said. “No one is going to need your social security number unless its your insurance company.”
3. Keep a healthy cash flow:
While being evacuated from your home or after losing your house, make sure you don’t spend unnecessarily in case the insurance company doesn’t cover all expenses. Consider temporarily cancelling all savings, like contributions to 401(k)s, to maximize cash flow and avoid debt.
“You also don’t know how long it will take for the insurance company to pay you back,” Reynolds said.
4.Question what doesn’t make seem right:
Don’t accept anything that you don’t completely understand. If the amounts don’t seem right, ask for a second opinion before signing off on anything.
“You just want to be really careful all along the way that you ask questions,” Heyman said.
5. Plan for the worst, hope for the best:
Don’t rush important financial decisions including: refinancing your home, deciding to move or taking on big expenses. When you have time make a list of all the important documents and valuables you may have lost. If you don’t know the state of your home look for places where you could stay in the case your home has been destroyed.
“Don’t wait until you find your house was totally destroyed to go and try to find housing for the next year,” Reynolds said. “Have a plan in place.”
Michelle Zayed: 303-954-1720 or mzayed@denverpost.com
