Life in Paradise; Life in a Hurricane Zone

Hurricane season lasts from June 1 to November 30. And in a season that includes -- so far --10 named tropical storms or hurricanes, I periodically wonder: Why did I voluntarily evacuate to a hurricane zone in 1993? I love my life in Miami. I love the ocean view from my apartment, but I was naive when I crunched the relocation numbers. I did not factor in hidden storm costs.

The move -- from Manhattan to Miami -- was prompted by the need to find affordable housing in an urban setting with a warm climate. The cost of a rental apartment, childcare and other basics in Manhattan exceeded my salary. In contrast, Miami Beach --prior to the recent spike in residential real estate -- seemed like an affordable option in a beachfront paradise.

The Lures:

*Cheap rent or low-cost housing
*Affordable childcare
*Competitive salaries

What's more, we save a fortune on clothing because our local climate is mostly sunny and warm. My kids only need a one-season wardrobe, with a few jackets and sweaters for cold snaps in the winter.

But there are hidden costs that I failed to include in the initial calculations. For example, regional and seasonal emergencies can be dangerous and expensive. Weather-related disasters have had the following impact on my family:

• Destroyed engine: We lost one car on a flooded street. The engine was soaked and the insurance company declared the car a total loss. Although the insurance policy covered the auto loss, we did not receive dollar-for-dollar replacement value for the vehicle. There were also assorted out-of-pocket expenses related to the destroyed vehicle.
• Damp wardrobe: Water damage and mold in our closets have trashed suits, shoes, hats and other garments.
• Damaged furniture: During one storm, our apartment was flooded, which lead to the damage of some household items.
• Emergency supplies: Every year, we spend between $100 to $300 on hurricane supplies, which include batteries, ice, camping supplies, bottled water and plywood.
• Intangible costs: We have lived for short periods without water and electricity. But our total losses, thank goodness, have been small. More importantly, we have been safe. My family has been fortunate. But storm threats --with related fears about safety and security -- have exacted emotional costs.

This post, however, is not meant to be a whine. I live a life of gratitude in Miami. And there are random acts of nature in other parts of the country, including floods, wildfires, earthquakes and tornadoes. And I've learned to be grateful for personal safety (and for the safety of others!) and to consider regional weather patterns and terrain when making relocation decisions.

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Financial Preperations for Hurricanes, Storms & Other Natural Disasters

I live in Paradise with palm trees, an ocean breeze and hurricanes. But you don't have to live in Florida to create emergency plans for your home and money. Unfortunately, wild fires, high winds and floods can happen anywhere.

Based on that reality, the following release about emergency plans for money apply to all of us:

"Hurricane Season starts June 1, and while Florida was spared from a major storm the last two years, many Floridians have already begun preparing for what could be a very active 2008 season. You may have already stocked up on batteries and bottled water, tested the generator, and planned an evacuation route, but have you thought about how you will manage financially should a storm come our way?

"The economic impact of a major hurricane will be felt long after the storm has passed," said Jessica Cecere, president of Consumer Credit Counseling Service of Palm Beach County and the Treasure Coast (CCCS). "Proper financial preparation and follow-through can make the difference between surviving a natural disaster and being financially devastated by one."

CCCS offers tips to help families weather the storm:

Start an emergency savings account. Most experts recommend having a minimum of three to six months of living expenses in an emergency fund. This fund can provide financial security in the event a hurricane hits, and can greatly reduce the stress of recovering from a major storm or other disaster. These funds can be used to make disaster repairs, cover insurance deductibles, or pay monthly bills if your income is interrupted by job loss.

Review your insurance coverage. Review your policy and make sure you have the proper amount of coverage to repair or replace your home and belongings. Pay special attention to deductibles that apply to specific events, such as hurricanes, which can be a percentage of your home's value. Also review your flood coverage, which must often be purchased separately from your homeowner's insurance. You do not want to be in the position where you need coverage that you thought you had, but do not.

Secure critical documents. Take some time to make sure that your critical documents are in a safe, secure place and could be taken with you if you have to evacuate. Collect critical paper records and if you have records on your computer, be sure to make a backup and store it away from your home. Documents you will want to secure include identification records (driver's license, green card, passport); social security and tax information; titles, deeds, and registrations for property and vehicles owned; insurance policies; credit card, bank and investment records; birth certificates, marriage certificates, and wills. Invest in a fire-proof box or safe-deposit box to keep these records secure.

Review your "what if" scenarios and make a plan. What if your place of employment is damaged and will close either for a few weeks or indefinitely? What if your employer is ready to reopen but schools are still closed and you don't have a place to bring your children? What if your home is damaged and no longer safe to live in? It is a good idea to think about all the ways the storm could impact your life and what you would do if that happened.

For example, if your place of employment will not reopen for weeks or months, do you have an emergency savings fund to carry you through? Is there another place you could work in the meantime? The rebuilding effort following a storm often creates new job opportunities. Talk to friends and neighbors about sharing the childcare responsibilities until school reopens so that you all miss as little work as possible.

"With the prediction by NOAA of up to 16 named storms and 5 major hurricanes, chances are good that we will find ourselves in the recovery process this year," said Cecere. "While we can't disaster-proof our community, we can be prepared to handle the challenges the storm leaves behind."

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Ripping the Rug: Money Tips from Pet Stains & Hurricanes

Our rug has been soaked by hurricanes, a cute dog named Scruffy and a broken water heater. I've lost track of how many times our carpet has been professionally dried, cleaned and hammered back into place.

Yesterday, the rug was finally lifted, torn out and cut up. The tile man will be here today through Friday, G-d willing. But beyond new squares of clean, cool tiles, I've learned a lot of frugal and financial lessons from our rug-lifting experience.


1. Be willing to start over: It was hard to let go of the rug, which buffered sound and was great for gymnastics, yoga and break dancing.

Likewise, due to assorted comforts, I've held onto jobs, clothing, banks and even unsuitable investments longer than I should have. But often it pays to rip up a rug, a portfolio, a contract and just start over.

2. Be realistic. Know your limitations. I live in Florida. Hurricane Season is a fact of life. At least twice a year, strong winds and rain soak my living room. Given that scenario, a wall-to-wall carpet is insane.

Likewise, I have certain financial limitations. I am an addictive shopper. I am disorganized. Armed with that reality check, I save more of my pay check because I avoid the financial squalls of Hurricane Sharon ripping through Art Deco malls and cafes.

3. Call in the professionals. We should have hired a professional trainer to housebreak our dog, who is now a year old and trained. A professional puppy training class would have been money well-spent and left us with fewer carpet stains.

Note to self: hire a professional accountant or CPA. I have a head for business and numbers, but some financial computations ---like taxes -- are beyond my grasp. I get so ADD about forms!

4. Be patient. Be persistent. Once, we made the decision to rip up our ugly, stained and storm-damaged carpet, it seemed to take forever to get the rug removal crew and the tile pro on the scene. We accomplished our goal with heavy doses of patience and persistence. Lots of phone calls; lots of reminders.

Ditto for my own efforts to rip up the unsightly portions of my financial profile. Lots of calls; lots of reminders -- Like this mental note.






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