Now that hurricane season is upon us, many homeowners are scared.  If you live on the east coast or near the Gulf of Mexico, then you should be afraid.  A hurricane can be a homeowner’s worst enemy.  Don’t let a hurricane destroy all of your assets and leave you high and dry.

With Tropical Storm Alberto churning in the Gulf of Mexico and strengthening, Floridians have begun to plan for the hurricane season. Is it possible they are missing a very important item from their lists?

The answer is the equity in our homes. Many of us, especially if you have owned your home more than a year, have a considerable amount of equity in our homes. The problem is, we will not have access to that money if a hurricane is even expected to hit, so we need to add this item to our list. We need to protect our home equity by taking out a mortgage now in some form and establishing an emergency fund to get us through a potential crisis.

By adding home equity to list of hurricane preparations, homeowners can increase the availability of their home equity and be better prepared to survive any financial crisis, whether a hurricane, job loss, or other disaster.

While thinking about home equity may seem inappropriate when making preparations for an incoming hurricane; however, you do not want to go through a devastating event like a hurricane and lose everything you had at the same time.  If you take out a home equity loan now, then you will have some a nest egg if you ever need it.  If a hurricane wipes out your house, then you will be glad that you have this money to get back on your feet.

By Philippe Volo
Compare Your Loans Contributing Editor