By Heidi Preslicka, Organized Thoughts

In the organizing industry there are many buzz words and phrases. One of them is “disaster preparedness.”

Ever since Hurricane Katrina, organizers have been scrambling to prepare their clients for a disaster, focusing mostly on preparing for an evacuation and having a “grab and go” file. Being in the Midwest we don’t have to worry about hurricanes, but disasters can come in all shapes and sizes. We should not overlook all the ways disaster can impact our lives.

Disasters can come in the form of illness, job loss, a house fire, burglary, accident, tornado, and many, many more. Recently my husband and I took a look at how prepared we were for a crisis and we came up short in several areas. Thinking about a disaster can be a difficult and emotional topic, but when properly prepared, disasters can make devastation a little less devastating.

Since reviewing all the areas you need to be prepared for can be very time consuming, I recommend that you take one specific area each year and review what you have and what you need. Or, if you have the time, you can do like my husband and I did and review everything all at once. You will need to consult an expert in each particular field in which you are reviewing, such as insurance agent, financial planner, lawyer and accountant. They will help you make decisions on what you need.

Here is an overview of the types of things that you need to prepare for. I am certainly no expert in these fields, but will share with you what I have learned.

Insurance: This is a big topic and there are many types of things to be insured. Many employers supply much of the insurance that I speak of here, but if you are self employed it is up to you to find the insurance you need to protect yourself. As small business owners, my husband and I have needed to be proactive in making sure that we are covered. A simple meeting with your insurance agent can provide you with the information you need, but I will quickly review some areas that we needed to modify in our life.

First, it is good to review what you have your house insured for. Many times improvements or additions are made to a home and the insurance agent is not notified. Your premium will most likely go up, but you want to make sure you are fully insured to replace your home and belongings in the event of disaster. Also, check your auto insurance and look into umbrella policies.

Disability insurance is needed to protect you in the event you become disabled for any reason and you lose your income. There is a maximum disability insurance you are allowed based on your income level.

Most importantly, don’t leave your family ill equipped to handle life in the event of your death. Your choices are Term Life insurance and Whole Life insurance. Whole Life insurance combines insurance with savings. We chose Term Life insurance because we felt we could save more efficiently outside of insurance.

Another type of insurance you may need is liability insurance. This is meant to cover your business in the event that a customer or employee is injured. There may be other types of insurance you need, ask your insurance specialist.

Cash reserve: Having a built up “cash reserve” is generally a good idea in the event of job loss or business decline. Again this is a must have for the self employed and in today’s economy it is a good idea for everyone. Ask your financial planner how much is a good amount for you to put in reserve. Some experts recommend three to six months worth of income. This may be a lofty goal, but could be something you can work toward.

Will and health-care directive: Having a lawyer draw up a will is one of the most neglected forms of preparing for a disaster. This is an easy task and will most likely cost less than $400. In the event of your death, family members will be under less stress and arguments will be prevented if a will is in place. A health-care directive covers not only end-of-life issues, but also extended-care issues. You should discuss this with your lawyer. Tell a friend or family member where your will is located. Better yet type up a list that will help them find other information that may be needed. Also consider a Power of Attorney so that financial issues can be taken care of should both spouses end up in the hospital at the same time.

Safe deposit box: To protect important papers, purchase a safety deposit box or rent one a your bank – in it, include papers such as your will, house title, Social Security cards, savings bonds, auto titles, birth certificates, marriage or divorce documents, passports and other information.

Photos and video: One area I like to prepare for is protecting my photos and video. I am a photo and video fanatic and believe protecting them is a must! I back up my photos on external hard drives. I use several in case one hard drive fails. They are relatively cheap and definitely easy to use. I keep video tapes and back up hard drives at a relative’s house. In return I offer the same service for them. Online photo companies are also a wonderful option for protecting your photos. Or subscribe to an online back-up service which cost only $10 or $20 per month.

Unfortunately we cannot prevent bad things from happening. But at the very least we can take the steps needed to better handle crisis situations and give our loved ones the peace and security of knowing that we have fully prepared them in case of a disaster. This is an important gift we need to give our family.

(Heidi Preslicka is a professional organizer, offering hands-on and consulting organizing services for families and small business. She can be contacted via her Web site at www.intherightplaceorganizing.com. Her column, "Organized Thoughts" is one of several opinion and commentary pieces appearing regularly in this newspaper.)