AICPA Survey: One-Third of Americans Have Taken No Financial Steps to Prepare for a Natural Disaster

Two-thirds of Americans say being impacted by a natural disaster would have a negative impact on their financial situation

WASHINGTON, July 21, 2025 /PRNewswire/ -- A recent survey conducted by The Harris Poll on behalf of the American Institute of CPAs (AICPA) found that nearly one-third (32%) of Americans have taken no financial steps to prepare for a natural disaster. Meanwhile, two-thirds (66%) of Americans say that being impacted by a natural disaster would have a major (29%) or moderate (37%) impact on their financial situation.

"Many Americans don't think about their finances when it comes to preparation for a natural disaster. However, financial needs become front and center after the destruction has already taken place," says Eva Simpson, CPA, AICPA vice president of member value, tax & advisory services. "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%). At the bottom of the list was creating or updating an estate plan and/or will (19%).

Business Owner Concerns

Sixty-three percent of business owners surveyed say they are either very (31%) or somewhat (33%) concerned about the possibility of financial hardship for their business if the business 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 Natural Disaster Financial Preparation - 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, 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 (EAP) at work.

Advice for Natural Disaster Financial Preparation - Business Owners

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," said Simpson. "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."

Survey Method:

This survey was conducted online within the United States by The Harris Poll on behalf of AICPA from June 13 - 17, 2025 among 2,093 adults ages 18 and older, among whom 284 currently own a business (i.e., business owners). The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level.

About the American Institute of CPAs  

The American Institute of CPAs^® (AICPA^®) is the world's largest member association representing the CPA profession, with 397,000 members and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. A founding member of the Association of International Certified Professional Accountants, the AICPA sets ethical standards for the profession, attestation standards, and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state, and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, partners across the profession to build future talent, and drives continuing education to advance the vitality, relevance, and quality of the profession.

SOURCE AICPA