Our best strategy: Preparing for the worst

Nobody likes to dwell on the unthinkable. But September was National Preparedness Month, making now an opportune time to take stock of how ready we are personally and collectively for a natural disaster or other emergency. At the individual level, being prepared can make all the difference in rebuilding our lives. And, as a credit union, we are stronger when our members are as equipped as they can be to deal with unforeseen events.

$12 billion First Technology Federal Credit Union, with headquarters in San Jose, California, and a membership that also encompasses Oregon and Washington, is squarely in earthquake country. In recent years, especially in light of damaging quakes in Ridgecrest and Napa, California, we’ve seen members express greater interest in the topic of earthquake insurance. Many homeowners are unpleasantly surprised to learn that earthquake claims are excluded by conventional insurance; it’s an add-on that must be purchased separately. Flood coverage, too, is something our members tend to forgo.

Whether due to a lack of awareness on members’ part, or the sense that the additional disaster coverage is not worth the cost, having an improperly insured home or business is a tremendous vulnerability. In a crisis, our members could be left without the financial resources needed to repair, rebuild or replace what is damaged. Ultimately, this also means that much of the mortgages and collateral owned by First Tech FCU is not properly insured—and that’s a vulnerability for the credit union as a whole.

 

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