You should also look at getting Replacement Cost Coverage for the contents of your home. Insurance typically pays out on a depreciated basis. This means that if you have a stereo that cost $300 when you purchased it five years ago, but you can buy the same system on eBay for $50 today, then $50 is what you will get. Replacement cost coverage addresses this issue. Only a few companies will offer this type of coverage and it is not cheap, but it can be well worth the price if you ever do lose your home.

When a disaster hits, don’t blindly pick up the phone and report it to your insurance company without first having some understanding of the amount of damage you have suffered. Then compare this to the appropriate policy. If you your damage don’t exceed your deductible, then you don’t want to involve the insurance company at all.

The reason for this is very simple. Insurance companies use a database called CLUE to track homes that have been damaged. Once your house shows up in CLUE, it may hurt your resale price or, in the case of water damage, make your home uninsurable. This may not seem fair but it is a fact. So do your homework prior to reporting.

Once you do make a report to your insurance, you don’t have to take what they offer you. Your insurance company will try to keep their costs down. They may do this by steering you to certain contractors, or using cheaper building materials. If you think that you are not being handled fairly, then it may be time to hire a public adjuster.

Public Adjusters become your advocate with the insurance company. They fight long and hard to get you the best deal. They typically charge a percentage of the amount that they collect but, because of their expertise, you will almost certainly come out better by using a public adjuster when you suffer a major loss. Just make sure that you check their references prior to hiring them. Scam artists are a dime a dozen after any major calamity.

After you have made it through the first few days of a disaster, may become a real lifesaver. But you will need to take action in order to protect it.

No credit grantor wants to be reported as being a "bad guy" when a disaster strikes. Virtually all credit grantors will be willing to work with you to protect your credit, but action will be required on your part.

Call your creditors and explain your circumstances. If you mailed a bill just prior to a disaster, call and make sure that they received payment. If you have bills due shortly after a disaster, let them know if your bank is closed, or the post office isn’t open, or you have no access to checks because you lost your home. They will work with you. Normally they will agree to postpone payments, waive late fees, and not report late payments or do anything else that will hurt your credit. But you do need to make the call.