If Disaster Comes, Could You Weather the Storm?

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Harvey made landfall as a Hurricane last Friday and left a trail of devastation across Texas and the Gulf Coast. It’s being called a "1,000 year flood event" by scientists at the University of Wisconsin’s Space Science and Engineering Center.

It's the type of disaster few people could ever really prepare for. In the months and weeks ahead the price tag of the damage will become apparent for millions of people across the state. But financial vulnerability is exposed not only during catastrophic events like Harvey, but often times in the unexpected turns of daily life.  In 2015, 46 percent of Americans said that they did not have enough cash available to cover a $400 emergency, according to the Federal Reserve’s annual economic well being of U.S. households.

Jonathan Morduch is a professor of public policy and economics at New York University's Wagner Graduate School of Public Service. He is co-author of "The Financial Diaries: How American Families Cope in a World of Uncertainty," and after tracking 235 households for a year, he found that both their monthly income and monthly spending was highly volatile. This level of volatility leaves people exposed financially.

Courtney Collins is lead reporter on KERA’s One Crisis Away project, which has tracked North Texans living on the financial edge for more than four years.Collins says it’s not about being rich or poor — it’s about the unexpected problems of daily life that can destroy families financially.

In a Takeaway survey of 2,163 people conducted by Harris Insights and Analytics, only 10 percent of adults said feel they are very prepared for a natural disaster. John Gerzema, CEO of Harris Insights and Analytics, explains. 

Here are some key findings from The Takeaway-Harris Poll, which surveyed 2,163 American adults between August 29 and August 31, 2017.

• Americans are split on whether they are prepared for a natural disaster, such as Hurricane Harvey.

• 50 percent say they are very/somewhat prepared, while the other half say not at all/not too prepared.
• Only 10 percent of adults feel they are very prepared for a natural disaster. 
• Those in the South are significantly more likely to say they’re prepared compared to any other region.
• Older Americans are more likely to be prepared compared to their younger counterparts. Inversely, younger Americans are more likely to say they’re not prepared.
• Thinking specifically of whether they’re prepared for a long-term power outage or other disaster that requires supplies, such as food and water, for three days, levels of preparedness jump to 57 percent (18 percent very prepared), with 41 percent unprepared. 

• Americans will most often turn to family and personal resources if a crisis like Hurricane Harvey were to strike them, rather than response programs. 

• 32 percent would depend on family first
• 16 percent say insurance
• 15 percent say a personal emergency fund
• 14 percent disaster response programs
• 10 percent community
• 6 percent friends
• 3 percent donations
• 4 percent something else

• A majority of adults have confidence in their community’s ability to handle a natural disaster like Hurricane Harvey. 

• 62 percent are very/somewhat confident (12 percent very); 38 percent are not at all/not very confident (11 percent not at all).
• Those in the South are significantly more likely than any other region to say they’re very confident in their community’s ability to handle.

• The desire to help is strong, though ability is lacking for some. 

• 44 percent say they plan on helping through donating money (38 percent) and/or providing assistance on the ground (10 percent).
• Those in the South are significantly more likely than any other region to intend to provide ground support (14 percent).
• Those with high household income levels are more likely to say they intend to donate money vs. lower income.
• While 42 percent say they want to help, they just can’t afford to.
• This is particularly true of younger generations (18-54 year olds vs. 55+)
• Just 14 percent of adults say they don’t plan on helping in either manner.

This segment is hosted by Todd Zwillich.