How to Prepare for a Winter Storm
When a winter storm hits, preparation entails more than just going to the store. Here's how to prepare your finances for a storm.
Winter has officially arrived — and just in time for the holidays, according to the National Weather Service, which predicts a major winter storm in the Midwest. In the days leading up to Christmas, much of the country can expect heavy snowfall, strong winds, and various types of sometimes severe winter weather
When a winter storm hits, you might think that preparing entails a quick trip to the supermarket before the bread and milk run out. However, a winter storm can cause business closures, major car accidents, property damage, and power outages. That's why it's critical to plan ahead of time for how you'd weather a bad winter storm financially.
Check your insurance coverage
According to Aon data, winter storm damage accounted for a record-breaking $15.5 billion in insured losses in 2021. That was the year Texas was hit by winter storms that knocked out power, reminding Americans that snow, ice, and freezing temperatures can cause the most damage when they strike in the most unexpected places.
What kind of harm are we discussing? If a frozen water pipe bursts, it could flood your house and destroy your belongings. Ice on your roof could cause water to leak into your home. A patch of black ice on the highway could cause a collision, resulting in costly car repairs and medical bills.
As a result, having adequate insurance coverage after a blizzard or ice storm is critical. But don't put off figuring out what's covered or how to file a storm damage insurance claim until it's too late. Updating your policies or inquiring about your coverage prior to a storm will save you time, energy, and money when you need them the most.
Disaster-proof your credit
Winter storm damage, like other natural disasters, can have a long-term financial impact. If you fail to pay a bill or incur large expenses on your credit card, your credit score may suffer. You can take precautions now to safeguard your credit in the event of a natural disaster.
For example, having extra cash on hand could alleviate the stress of having to replace food or stay in a hotel if your home's power goes out for an extended period of time. Consider adding to your emergency fund if you have one. If you don't have one, make it a priority to start one.
Make a financial emergency kit
Along with snow shovels, flashlights, and nonperishable food, you should have easy access to important documents in case of an emergency. Things happen unexpectedly, and you don't want to be scrambling for contact information or medical records as you flee your frozen home. Compiling and preserving documents that assist you in contacting insurance companies, obtaining medical care, or proving your identity may all aid in your recovery after a natural disaster.