Tue, September 16, 2008
Are You Prepared for a Disaster?
As residents of Houston and Galveston grapple with the aftermath of Hurricane Ike, it strikes me that every year, some part of the US must deal with a natural disaster. Hurricanes in the Gulf and southeastern states, wildfires and earthquakes in California, and flooding in the Midwest often leave lasting consequences for those living in the affected areas. Although such events happen relatively infrequently in New England, the region is hardly immune from the possibility of a serious natural disaster. Being prepared for a disaster should be an important part of every household's risk management strategy.
This Sunday marks the 70th anniversary of the Great New England Hurricane of 1938, also known as the Long Island Express, a fast-moving storm that caught the northeast coast by surprise. The storm was one of the worst in American history, causing deaths from Long Island to New Hampshire. Parts of downtown Providence were submerged in ten feet of water. The Blue Hills Observatory in Boston measured sustained winds of 112 mph and gusts of 186 mph; flooding was experienced as far west as Ware, Massachusetts, where residents were stranded for days and required airlifts of food and medicine.
Severe hurricanes are rare, but not unknown in New England. Since 1900, nine hurricanes have made landfall in the New England; of these, four were Category 4 storms with wind speeds of 131-155 mph. A.M. Best estimates that the Hurricane of 1938 caused insured losses in excess of $10 billion (2007 dollars). The United States Landfalling Hurricane Probability Project estimates a 42.5% probability that Eastern coastal Massachusetts will experience hurricane force wind gusts in the next 50 years and a 84.8% probability that the area will experience gusts in excess of 40 miles an hour.
Interestingly, I noticed a few years ago that language specifying higher-than-normal deductibles for hurricane damage suddenly began appearing in my homeowner’s insurance policy. Some insurance companies are beginning to worry about the possibility of serious hurricane damage in the area.
Although we tend to think of earthquakes being a problem primarily for California and Japan, New England has been hit by some powerful earthquakes in the last 300 years. The geological formations and large areas of landfill here are such that an earthquake of lesser force is expected to do more damage in Boston than it would in San Francisco. In 2006, the Boston Globe published a map showing that there are sections of Boston, Cambridge, and nearby communities area that would be at high risk of liquefaction during an earthquake.
The Boston area is occasionally hit with crippling snowstorms. There are still plenty of people around who remember the Blizzard of ‘78, which forced thousands of motorist to abandon their cars on the highways and left some households without electricity for a week.
Since disasters can occur with little warning, it makes sense for every household to have an emergency preparedness plan. There are plenty of resources available to help in the process:
Red Cross Family Disaster Planning Brochure
Red Cross 3-day Emergency Preparedness Kit
The items needed for an emergency preparedness kit can be assembled inexpensively on your own; you needn’t buy a special one. The Red Cross site also includes information for special situations such as providing for disabled persons, pets, etc.
FEMA Emergency Preparedness Brochure
Small businesses also need to be prepared for emergencies. According to the Institute for Business and Home Safety, a quarter of businesses don't reopen after a major disaster. The Small Business Administration offers a few disaster preparedness resources for businesses.
Besides having food, water, and other emergency supplies, I think it makes sense for households to keep a small amount of extra cash on hand – probably no more than $200-$300 – in case of an emergency. We’ve become accustomed to being able to use credit cards and ATMs, but these often can’t be used soon after a natural disaster. If ATMs are functioning following a disaster, they’re likely to be rapidly depleted of cash.
If you haven’t yet abandoned your land line, an item that will come in handy in the event of a power loss is a cheap corded phone – the old-fashioned kind that runs on the power supplied by the phone line. Cellular phones are great, but if power is lost for more than a few days, you may not have a way to recharge your batteries.
I’m also of the opinion that New England residents should buy an earthquake rider for their homeowner’s policy. People usually find it amusing when I say this, but the cost of coverage is relatively low, and standard homeowners’ policies don’t include coverage for damage from earthquakes. Also, it makes sense to consider flood insurance; flood damage is not covered by homeowner’s policies. Standard flood insurance benefits are limited to $250,000 for a building and $100,000 for its contents, but most households cannot afford to self-insure for such losses.