Nearly one-third (32%) of Americans have taken no financial steps to prepare for a natural disaster, according to a survey by the Harris Poll on behalf of the American Institute of CPAs.
The poll found two-thirds (66%) of Americans say that being impacted by a natural disaster would have a major (29%) or moderate (37%) impact on their financial situation.
The most popular actions Americans have taken to prepare financially for a natural disaster are evaluating insurance needs to assure adequate coverage (31%) and taking an inventory of assets and possessions for insurance purposes (30%). At the bottom of the list was creating or updating an estate plan and/or will (19%).
Earlier this month, Congress passed a bipartisan bill known as the Filing Relief for Natural Disaster Act backed by the AICPA and state CPA societies that would provide tax-filing relief for taxpayers in states that have issued state-level disaster declarations after unanimous passage earlier this year in the House.
“Many Americans don’t think about their finances when it comes to preparation for a natural disaster. However, financial needs become front and center after the destruction has already taken place,” said Eva Simpson, AICPA vice president of member value, tax and advisory services, in a statement Monday. “Disaster preparedness when it comes to finances can go a long way to mitigate the financial toll and help people and businesses recover.”
Some 63% of the business owners surveyed said they’re either very (31%) or somewhat (33%) concerned about the possibility of financial hardship for their business if the business experienced financial losses from a natural disaster.
When business owners were asked what their top three biggest worries were for their business when it comes to recovering from a natural disaster, they were most concerned with loss of revenue due to business closure or disruption (33%), loss of customers or contracts (29%), and damage to property, equipment or inventory (26%).
The findings take on new urgency amid recent disasters like the catastrophic flooding in Texas and other parts of the country.
