Be Ready! September is National Preparedness Month

So you've created the perfect filing system, you can put your hands on any piece of paper in 30 seconds or less, and your desk is in order. But

what happens if your house burns down tomorrow -- will all of your vital records go up in smoke? If you become sick or seriously injured, would your loved ones be able to find what they need to manage your affairs? You need to make sure your important paperwork is protected and easy to access in case of an emergency. Think about how difficult it would be to rebuild your life without the right paperwork. How long would it take you to file a claim with your insurance company, if you didn't know your policy number? What financial challenges would you face if your checks, bank statements, and credit card info was destroyed? How could you get the help you needed without birth certificates, social security cards, and other personal information?

The goal here is not to be pessimistic, but prepared. You should keep a list of all your important numbers (bank account, credit card, insurance policies, social security) and contacts (advisors, account managers, customer service) for any information that you would need if disaster struck. You should also consider storing the originals of your vital records (birth certificates, wills, insurance policies) and your list someplace safe. That means a deposit box at the bank, a locked drawer at your place of employment, your mother's house, or a fire safe in your closet -- then keep copies in your everyday files for quick reference. It's also a good idea to leave copies of this information with your attorney and CPA -- the two professionals who will be most involved with your situation if you do face a major emergency.

Filing an Insurance Claim

Another important item to consider during an emergency is your household inventory. If your personal possessions are damaged or destroyed, you will need to itemize everything that you lost and estimate its value. If you had to, right now, could you make a list of all your belongings and how much they are worth? Probably not. And it would be even more difficult during a time of crisis when you are stressed out and not thinking straight. So the key is to get things in order before you are put into that situation.

You have several different options for creating a household inventory. The easiest technique is to walk around your house with a video camera, filming everything that you own. Where you can, go ahead and make comments about your belongings as you shoot -- "We bought that TV last year and it cost $600," or "Grandma Miller gave us that table; it was made in 1865." If you don't have a video camera, take snapshots of each item. Don't forget to estimate the year of purchase and the value of each piece. If you have the receipt, make a copy and clip it to your list. If an item is particularly costly or hard to replace (like artwork or an antique), you may wish to have a certified appraisal done and include that documentation with your list. Your household inventory should be stored with your other important papers, but don't just file it away and forget about it; you need to plan a time each year to update your list, adding on any new items you have acquired since the last inventory.

Source: OnlineOrganizing