Why is It Important?
For cooperatives, large weather events typically mean damage to power lines and other property, along with increased staff expenses as workers put in overtime and travel to make repairs. These surprise expenses are difficult to predict, and cooperatives can’t accurately gauge how much of the costs will be recoverable through insurance or Federal Emergency Management Agency (FEMA) programs.
To better plan for storms’ financial impact, cooperatives open storm reserve accounts with Homestead Funds.
Our Role
Homestead Advisers can help support your mission by providing a range of programs to serve the needs of the cooperative and its employees.
Homestead Advisers and Homestead Funds have the guidance, account types, and investment options to help foster the long-term success of your cooperative. When you open an account with Homestead Funds, you choose how to invest across our family of mutual funds according to your cooperative’s tolerance for risk and expected time horizon. Investing poses risks, including the risk of loss, but it also provides the opportunity to earn a return above what is typically available on stable-value funding vehicles.
Corporate accounts can be an effective way to build storm reserves, and we’ve helped numerous cooperative executives set up these accounts to plan for emergencies. These reserve accounts are available when you need them – no waiting for FEMA or bank loan approvals.
Establishing a Storm Reserve Account
When setting up storm reserve accounts, cooperatives need to be sure these accounts will not interfere with FEMA eligibility. You should refer to the Related Resources below for background and clarifications provided by NRECA and outside legal counsel, and:
- Define your cooperative’s understanding of what constitutes a major storm.
- Determine the impact of prior storms to identify future reserve account funding.
- Consider and obtain any regulatory approvals and involve your board of directors in the decision-making process.
- Open a Homestead Funds account using the Entity Account Application below.
Related Resources
- Storm Reserve Program Overview Brochure
- Memorandum
- Entity Account Application
- Sample Corporate Resolution
Your Regional Relationship Manager can assist you with the process to open the account.
Brian Allen
NATIONAL RELATIONSHIP MANAGER; INVESTMENT ADVISOR REPRESENTATIVE; AND REGISTERED REPRESENTATIVE
Mark Edwards
REGIONAL RELATIONSHIP MANAGER; INVESTMENT ADVISOR REPRESENTATIVE; AND REGISTERED REPRESENTATIVE
Stephanie Mills
REGIONAL RELATIONSHIP MANAGER; INVESTMENT ADVISOR REPRESENTATIVE; AND REGISTERED REPRESENTATIVE
Partner With Us
See the Case Study