What to Do If You Experience a Catastrophic Event
Even with thoughtful preparation, living through a catastrophic event can feel overwhelming. In the immediate aftermath, it’s common to experience shock, confusion, and a sense that everything needs your attention at once. But recovery doesn’t have to be chaotic. With a calm, step-by-step approach, you can regain your footing, protect your finances, and begin rebuilding with clarity and confidence.
Early on, it can be helpful to know where to turn for guidance. The Disasters and Financial Planning Guide offers a wide range of checklists, decision points, and practical steps for both preparedness and recovery. While no guide can eliminate the stress of a crisis, having a framework to reference can make the initial days feel more manageable.
1. Prioritize Safety and Immediate Needs
Your first and most important task is ensuring safety — for yourself, your loved ones, and anyone in your care. Follow emergency instructions, seek secure shelter, and address urgent medical needs. It’s also normal to feel emotionally shaken during this stage; acknowledging this can help you make more grounded decisions as the recovery process unfolds.
2. Document All Damage Before Cleanup Begins
Once you are out of harm’s way, thorough documentation becomes one of the most important tools you have. Take photos and videos of your home, vehicles, possessions, and any structural or water damage — ideally from multiple angles and before moving anything. Create lists of damaged items, note approximate values, and save receipts for temporary repairs or emergency purchases.
This early documentation will support insurance claims, federal relief applications, and any tax provisions available to you. Without it, reimbursement may be delayed or reduced.
3. Contact Insurance Providers and Begin Claims Promptly
Reach out to your insurance companies as soon as possible to begin the claims process. Ask about temporary housing benefits, debris removal coverage, timelines, and what documentation they'll need from you. Keep a written log of who you spoke with, what they requested, and any next steps — these notes can be invaluable later.
Be patient: claims often take longer during widespread disasters. Staying organized helps keep your case moving forward.
4. Explore Federal, State, and Local Assistance Programs
If your region receives a federal disaster declaration, you may be eligible for resources such as FEMA grants, temporary housing assistance, low-interest SBA loans, or extended tax filing and payment deadlines. But disaster relief doesn’t stop at the federal level — state rules also play a major role in determining what support is available to you.
Not all states automatically follow federal tax relief provisions. Some require separate declarations or issue their own timelines. The States' Disaster Tax Relief Map developed by the AICPA is a helpful visual that shows just how much variation exists from state to state, and it’s a reminder to verify the rules that apply specifically to where you live or file. Understanding these differences early can help ensure you don’t miss valuable relief or filing extensions during a chaotic time.
5. Lean on Professional Support When You Need It Most
During a disaster, having a trusted guide can make an enormous difference. As a CPA and financial planner, I help clients navigate the more complex pieces of recovery — documenting losses, coordinating with insurance providers, understanding how federal and state disaster tax relief applies, evaluating cash flow options, and avoiding financial decisions that could have long-term consequences.
In some situations, mediation can also be a valuable tool — helping resolve disputes with contractors, insurers, or other parties more efficiently and with less stress during an already overwhelming time.
6. Stabilize Your Cash Flow and Budget Thoughtfully
Unexpected expenses, temporary job disruptions, or medical needs often arise immediately after a disaster. Review your available cash sources — emergency savings, employer benefits, insurance advances, or community support programs — before making major financial decisions.
Avoid taking out high-interest loans or tapping retirement accounts without professional guidance. Even well-intended decisions made under stress can have long-term consequences. A short-term cash flow plan can help ensure you stay financially afloat while claims and benefits are being processed.
7. Protect Yourself From Fraud and Scams
Sadly, disasters often attract scammers posing as contractors, adjusters, or charitable organizations. Protect yourself by:
- Verifying contractor licenses, insurance, and references
- Avoiding large upfront payments or cash-only demands
- Being skeptical of unsolicited contacts or pressure tactics
- Never signing over your insurance settlement to anyone
Trust your instincts — if something feels rushed or unclear, pause and verify. Your financial and personal safety should always come first.
8. Rebuild With Support and a Long-Term Lens
Recovery isn’t a straight line — some days will feel productive, others frustrating. Lean on professionals where helpful: financial planners, CPAs, attorneys, and trusted insurance contacts can help you navigate claims, evaluate rebuilding options, and understand the long-term impact of major decisions.
Most importantly, give yourself grace. Disasters disrupt routines, plans, and emotions. Progress may feel slow, but each step you take is moving you toward stability and recovery.
Final Thought
A catastrophic event can feel disorienting, but you don’t have to navigate those early steps alone. By focusing on safety, documentation, financial clarity, and cautious decision-making, you can begin the road to recovery with confidence. And if you haven’t already, be sure to read Blog 1 for the key steps you can take now to prepare long before a crisis ever occurs.
