AICPA: One-Third of Americans Haven’t Taken Financial Steps to Prepare for Natural Disaster

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A survey conducted by The Harris Poll on behalf of the American Institute of CPAs, Durham, N.C., found 32% of Americans say they have taken no financial steps to prepare for a natural disaster.

Further, 66% said that being impacted by a natural disaster would have a major (29% of respondents) or moderate (37% of respondents) impact on their financial situation.

For those who have taken steps to prepare for a potential natural disaster, 31% have evaluated insurance needs to confirm adequate coverage and 30% have taken an inventory of assets. Only 19% said they had created or updated an estate plan or will to prepare.

“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,” says Eva Simpson, AICPA vice president of member value, tax and advisory services. “Disaster preparedness when it comes to finances can go a long way to mitigate the financial toll and help people and businesses recover.”

The survey also queried business owners on their concerns related to natural disasters. Among that group, 31% said they are very concerned about the possibility of financial hardship for their business if it saw financial losses from a natural disaster. Thirty-three percent said they would be somewhat concerned.