July-Aug 2020

information on all your financial assets, credit cards, invest- ment accounts, retirement accounts, insurance policies, bank accounts (checking, savings, etc.), loan/mortgage accounts, previous-year tax returns, business assets, real estate holdings, wills, powers of attorney, other estate documents and more. For each account in the inventory, include the institution that holds it, the account number, online user IDs/passwords, value of assets in the account, beneficiary information—any relevant information that you (or someone close to you) may need to access. Keep hard copies at home and off site, such as in a safe deposit box. Also make an electronic copy of the inventory and keep that file not just on your computer but in the cloud, where you can access it if something happens to your computer. To help organize it all, FPA member Monica Dwyer, a Certified Financial Planner™ (CFP®) professional with Harvest Financial Advisors in West Chester Township, OH, recommends using a digital repository tool, such as Everplans (www.everplans.com ), which provides a secure digital archive of all the above and allows you to share that archive with people of your choice. Insurance Ensure you’re covered with insurance—the appropri- ate type, in the appropriate amount. For its ability to protect the value of your assets (if not the assets them- selves) should they be damaged or destroyed in a disaster, insurance is a must, says Dwyer. Essentially, insurance is designed to reimburse the policy owner for the value (full or partial, depending on what’s stipulated in the policy) of the insured items. Homeowner’s insurance thus compen- sates the homeowner when the home or its contents are damaged or destroyed. Renters insurance does likewise for people who rent their home. For people who live in disaster-prone areas, the cov- erage shouldn’t end with homeowner’s insurance. Dwyer recommends backstopping homeowner’s insurance with other forms of property-casualty insurance that are appro- priate to the type of disaster risk you and your property face, whether that’s flood insurance in flood-prone areas or fire insurance, earthquake insurance, etc. With any insurance that you purchase, Dwyer sug- gests a policy that reimburses claims for the full replace- ment value of the assets, not just it’s actual cash value (the replacement cost minus depreciation). If your home and its contents are destroyed by fire, for example, you want to be reimbursed in amounts that cover the cost to replace them with a new home and new like-kind items. Business If you own a business, take extra protective measures. The steps above also apply if you own a business or a stake in a business. That holds true for key documents (such as partnership agreements, corporate operating agreements and bylaws, etc.), accounts (bank, retire- ment, etc.), hard assets (building, product inventory, etc.) and intangible assets, such as critical business data (employee info, financial records, customer and inven- tory data, etc.). Likewise, be sure all this key information is stored digitally in the cloud, and that where possible, physical copies are stored off site, as well. Consider developing a business continuity plan that includes employee contact information, information about backup vendors/suppliers, communications pro- tocols with staff and what-if procedures for handling key business processes and payroll should disaster strike. Your business assets also need to be protected with insurance. Make sure you have insurance that covers the type of damage your business may encounter from a disaster, such as wind or water, and that you have enough coverage to return your business to operation post-disas- ter. Also consider business interruption insurance, which covers lost income due to a disaster-forced shutdown. A financial professional can provide valuable guid- ance on insurance and other financial aspects of disas- ter preparedness. To find one in your area, visit the Financial Planning Association’s searchable database of CFP® professionals at www.PlannerSearch.org . This column is provided by the Financial Planning Association® (FPA) and the FPA of Central Pennsylvania Chapter, the princi- pal professional membership organization for Certified Financial Planner™ (CFP®) professionals. FPA seeks to elevate a profession that transforms lives through the power of financial planning. Through a collaborative effort to provide more than 23,000 members with tools and resources for professional education, business support, advocacy and community, FPA is the indispens- able resource in the advancement of today’s CFP® professional. From FPA REVERSE MORTGAGE / JULY-AUGUST 2020 7