This Week in Your Wallet: Disaster Preparedness and Charity Scams
Another week, another disaster. That’s what it feels like, anyway. My heart goes out to the victims of the tornadoes in the heartland. A glimpse of two Peoria, Il TV anchors who had to abandon their desk to seek safe cover hit very close to home for me – my father used to run that station. But even without a personal connection, it’s clear that we’re just living in a world where natural disasters are simply coming more frequently. We need to be prepared. And right now, we’re not.
The folks at Met Life Auto and Home recently released a survey on disaster preparedness. Among the findings: In states at high risk for earthquakes and hurricanes, just 50% of people are prepared. In states at high risk for wildfires just 30% are prepared. Far too few of us – when faced with disasters – take even the most basic steps: stocking up on bottled water and non-perishable food, securing a battery powered radio, making sure that someone is on hand to care for family pets. Finally, the study showed that 20 percent of us believe (wrongly) that floods are covered by standard homeowners policies and even more (33 percent) that those policies will pay to rebuild their homes completely after a disaster – no matter the cost.
It’s time to wake up and smell the generators, folks. And now, for the other news of the week.
Avoid fake charities:
In the wake of any major tragedy, whether manmade or natural, it’s always amazing to see how many caring and generous people are quick to act. For instance, in less than one week after Typhoon Haiyan ripped through the Philippines, the American Red Cross received $11 million from U.S. donors alone, according to CNNMoney. That’s heartening. What’s not is that at times like these scammers come out of their hovels and try to profit off your kindness. AARP reported on how to avoid them.
To put it in perspective, before Hurricane Sandy even hit New York last year, there were up to 1,000 fraudulent charity sites looking to get people’s credit card numbers and personal information. Some of these sites also inject viruses into your computer as parting gifts for your donations (gee, thanks). How can you tell the difference? Red flags include incessant spam emails, text messages and social media activity. Scammers have evolved with the times by making associated social media accounts, like fake Facebook pages, to dupe you into thinking they’re legitimate. Bottom line: before you ante up, take the time to do a background check on your charity of choice. Authenticate it through sites like Better Business Bureau’s Wise Giving Alliance, Charity Navigator, or Charity Watch. The article further suggests being weary of links in emails. Unless you’ve donated to a specific charity before, send those unsolicited donation request emails straight to the trash folder. You’re better off surfing to your charity’s website on your own.
Keep your current health plan (maybe):
Unless you were on vacation (and truly checked out) you heard the hubbub last week about those who were dropped from their current insurance providers because their policies aren’t meeting Obamacare requirements. That’s why President Obama came out last Thursday offering to rectify the situation. Here CNNMoney reports on the possibility of Americans being able to stay on their current health care plans for one more year.
But here’s the hitch: the President isn’t forcing insurers (or state insurance commissioners) to extend plans, but is giving them the option of offering the yearlong extension. Plus, not everybody who has already received cancellation notices will necessarily get the extensions. Again, this power is given to the states, and it could result in higher premiums. In the article, Karen Ignagni, chief executive of America’s Health Insurance Plans, says this move by the President (after policies have already met requirements of the Affordable Care Act) could destabilize the market. One thing I can promise you: We haven’t heard the last of this.
Tips for buying tech warranties:
Before loading up on new gadgets on Black Friday and Cyber Monday next week, consider Kiplinger’s six things to know about extended warranties. Chances are you’ll be offered these add-ons at the checkout counter (by pushy salespeople who stand to make big bucks if you comply). Extended warranties are high-margin items for retailers. So…do your homework. Check out sites like SquareTrade.com and Safeware.com for not only price comparisons, but also various plan terms and conditions. If you find yourself feeling pressured by the store clerk, try asking them how long you have until you’re no longer able to buy an extended warranty. Typically you can add one to your purchase for 30-90 days after the purchase date.
Have a great week!
Jean
