The National Weather Service has predicted a major winter storm in the Midwest, and Winter is here. In the days leading to Christmas, heavy snowfall, strong winds and other types of severe winter weather are all expected across the country.
Preparing for a winter storm can seem like a quick trip to your local grocery store to get the milk and bread you need. Winter storms can cause power outages, close down businesses and wreck cars. It’s important to plan ahead for how you will weather a winter storm financially.
Review your insurance coverage
According to data from Aon Insurance Company, the insured losses from winter storms rose to $15.5 billion in 2021. This was the year Texas was struck by winter storms that disrupted its power grid. It also reminds Americans that snow, freezing and ice can cause most damage when they happen in the most unlikely places.
How much damage is this? A burst frozen water pipe could cause damage to your property and flood your home. Water could leak from your home if there is a buildup of ice on the roof. Black ice could cause a car accident that can lead to expensive repairs and high-cost medical bills.
Your insurance coverage is crucial after an ice storm or blizzard. Don’t wait until you are in an emergency to find out what is covered and how to file a claim for storm damage insurance. Asking questions about your coverage and updating your policies before a storm hits can save you time, energy, and money.
As with other natural disasters like hurricanes, winter storm damage could have a long-lasting impact on your finances. Your credit score could drop if you fail to pay a bill or put large expenses on your credit cards. There are steps you can take now to protect credit in the case of a natural catastrophe.
If your power goes out, you might have extra money to help ease the stress. Consider adding to your emergency fund if you already have one. Start one if you don’t have one.
Create a financial emergency plan
You should always have access to all important documents in case of an emergency. You don’t want unexpected events to happen. If you have to flee your home in a hurry, you won’t be able find the contact information or medical records you need. You can recover from a natural disaster by preserving and compiling documents that will help you access insurance companies, get medical care, or prove your identity.