From the wildfires in Los Angeles County in early January to the deadly flash flooding that pummeled the Texas Hill Country on the Fourth of July, 2025 so far hasn’t had a shortage of natural disasters. And hurricane season hasn’t even ramped up yet. So, it’s critically important for Americans to prepare for the havoc Mother Nature can unleash at a moment’s notice.
But the results of a new survey published by the AICPA on July 21 show that many Americans don’t think about their finances when it comes to natural disaster preparation.
The survey—conducted online within the U.S. by The Harris Poll on behalf of the AICPA from June 13 to 17 among 2,093 adults ages 18 and older, among whom 284 currently own a business—revealed that nearly one-third (32%) of Americans have taken no financial steps to prepare for a natural disaster. In addition, two-thirds (66%) of respondents say that being impacted by a natural disaster would have a major (29%) or moderate (37%) impact on their financial situation.
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“Financial needs become front and center after the destruction has already taken place,” Eva Simpson, vice president of member value, tax and advisory services at the AICPA, said in a statement. “Disaster preparedness when it comes to finances can go a long way to mitigate the financial toll and help people and businesses recover.”
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%), according to the AICPA. At the bottom of the list was creating or updating an estate plan and/or will (19%).
Among business owners, 63% say they are either very (31%) or somewhat (33%) concerned about the possibility of financial hardship for their business if it 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%).
- Damage to property, equipment, or inventory (26%).
Advice for individuals
The AICPA provided the following advice on natural disaster financial preparation for individuals:
Create an emergency fund
- Set up an emergency fund to make sure you have the money you may need for any repairs post-disaster. Keep cash from this fund on hand prior to a natural disaster, in the event local ATMs and banks are without power.
Review your insurance policies
- Start by looking over your current insurance policies—homeowner’s, renter’s, and auto—and speak to a qualified insurance agent to make sure you have the right coverage.
- Take an inventory of what you have, using photos and video. Be sure you have adequate insurance to help you rebuild or replace the items that are important to you including your home and its contents, such as carpeting, furniture, and appliances, and personal items, such as clothing, electronics, jewelry, and hobbies or collectibles.
Protect important financial documents
- Some of the important documents to protect are identification records, inventory of your personal possessions, insurance policies, car titles and registrations, property deeds and mortgage/lease documents, military records, and wills and trusts. Keep these in a safe deposit box or a home safe that is capable of withstanding fire and water damage.
Make an estate plan
- An estate plan can include documents including a living trust or will, durable power of attorney, health care proxy, and beneficiary documents, including life insurance, retirement accounts, and other types of investments.
- Engage a professional team to make sure that your actions and intentions are aligned. If you don’t have money to pay a lawyer, call a legal aid clinic or a law school and ask if they can help you for a free or reduced rate. You may also have any legal benefits through your employee assistance plan at work.
Advice for business owners
The AICPA also provided some tips for business owners on natural disaster financial preparedness:
Consider communication channels
- Establish multiple communications channels ahead of time. Consider implementing cloud-based messaging platforms, internal portals, and mass notification systems. Ensure that staff are familiar with these formats.
Plan for remote work
- Think ahead for the possibility of remote work following a natural disaster by making sure your systems are accessible off-site. Test your access systems regularly, as well as your staff’s ability to access them via their work devices.
Protect your data
- Invest in a comprehensive data backup system that links to off-site or cloud storage. Protecting sensitive and financial data should also include cybersecurity protocols tailored for disaster situations, as well as staff training.
Prepare for physical workspace disruption
- Evaluate business locations for disaster risk and develop contingency plans for situations where you can use another business location or co-working space. Establish designated off-site meeting places for staff and prepare emergency supplies like chargers, first-aid kits, and backup communication tools.
“Preparing financially for a disaster is a challenging, but necessary, task for individuals, families, and business owners,” Simpson said. “Disasters can take a toll both emotionally and financially; taking these steps to prepare can provide peace of mind and help victims rebuild after a tragedy.”
Photo caption: Firefighters battle the Palisades fire on El Medio Avenue in Pacific Palisades, CA, on Jan. 7, 2025. (Brian van der Brug/Los Angeles Times/TNS)
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