The rain continued to pour down over the next few days, but my temporary fix held, the foot deep trench I had dug looked like a small stream. The little bit of water that came into the bedroom we mopped, and the dehumidifier I purchased churned out lots of water, leading me to believe that maybe we caught this in time for this to not turn into mold. Then our chimney started leaking. Buckets set, I decided it was time to call in the big guns. I called a contractor I had worked with in the past, and Ronnie came out the next morning and got a tarp over the chimney. The fix? A new chimney cap and repainting inside, a pretty decent chunk of money, but not horrible.
Ronnie asked if I wanted them to pull up the floor in our bedroom and get some shop vacs going. No I said, I think we got a handle on it. Somewhat proud of my efforts, I explained that I had dug a trench away from the house and it seemed to be draining now, plus my wife just got off work and needs to sleep. Cocking his head to the side, he said OK, whatever you want, let me know if anything changes. Was that a bit of a condescending tone? I probably imagined it. 6 hours later, I get a panicked call from my wife. There's water everywhere!!! She had woken up to a pool in our bedroom! Crap!!! I headed home and called Ronnie. A few hours later, a team of guys was in our house, helping rip up the floors, pulling stuff out, and vacuuming out the water. Luckily, our furniture seemed to be fairly intact since the water didn't really have a lot of time to sit. I thought well at least it isn't worse, this probably won't be too bad to fix.
We poked a hole in the drywall close to where the water seemed to be coming from, and moldy water rushed in. I had a sinking feeling, and a short conversation with Ronnie confirmed my fears, all of the walls in the bedroom have to come down in order to waterproof the walls and get the mold out. I called the insurance company, only to be told that we did not have flood insurance, although we had some coverage available for backed up drains.
Flashing forward a bit in time, we settled with the insurance company for about $8,000, and had a bill in hand for $23,000. That left me roughly $15k short. I had also just had some medical issues for my kids come up, and my emergency savings were all but gone. Murphy strikes again!
So how did I deal with this? Here are my 3 steps for recovering financially after a disaster.
- Put a band-aid on it
- Go to the doctor
- Let it heal
1. Put a band-aid on itThe first step in a disaster is to deal with the immediate need. Put a band-aid on it. What do you have to do in order for your family to be safe? Do that. My guess is if you are reading this article, you've probably gotten past the life threatening parts of a disaster, and have shelter. If something is life threatening, then call your local authorities, I can't help with that!!! If you don't have shelter, I'd recommend calling your insurance company or the Red Cross to get some options, they have specialized teams and may be able to help or at least point you in the right direction. The second part of the band-aid portion is to make enough repairs for your family to be able to live in your house. That means getting estimates and beginning work. How can you fund it? Insurance is always the first and best option, but barring that you might consider a quick fix like a 0% interest balance transfer from your credit card, that's what I personally did as a band-aid. That can buy you some time while you look for better funding sources.
2. Go to the doctorThe second step is to go to "The Doctor". These are the professionals that can help you out. If you haven't already talked to whoever handles disaster recovery in your town, you should figure out who that is (maybe call the Red Cross if you can't figure that out) and make sure you aren't missing out on financial assistance through those groups. The other doctor in financial terms may very well be your local banker. They can discuss your financial issues with you, and give you a few options for funding based on what you can afford to pay back each month. How I did this was to lay out all of my current loans and assets, and ask them to give me some options on consolidating things in such a way that I can save some money and also afford to make payments. A few days later, I had a few options, and they had found several ways for me to save large chunks of interest and work within my budget! I reviewed everything with my wife, and got the process going.
3. Let it healBy this point, you've taken care of the immediate need, and gotten some professional help. Now you need to let the financial wound heal, that means being careful with your money so that you are not creating any more debt, and are paying down your existing debt. Financial wounds often take years to heal, so be patient, and follow your financial plan. As long as you are heading in the right direction, it will be OK! If you don't have a financial plan yet or have struggled to build wealth, then I recommend reading my article on wealth creation: 10 Steps to Creating Wealth
I hope this article helped! If you can think of any other tips, feel free to comment below!
3 Steps for Financial Recovery After a Disaster Reviewed by Don Smith on 7:00:00 AM Rating: