Title: How the (Bad) Weather Affects You and Your Finances

Picture it, you start your day by checking the forecast on TV to see if you need an umbrella. The forecast says sunny skies, no umbrellas needed. Seems simple, you have been able to use this prediction for many years, and sometimes it is accurate, sometimes it has a few surprises. But there is a sinister plot arising against you. Skyrocketing energy bills and some surprise home repairs are coming your way, causing that sneaky forecast, and Mother Nature has some extreme weather coming your way.

In the following article, we’ll go over 5 common ways weather messes with your money and we’ll go over what you do to deal with it.

1. How Extreme Weather Can Damage Your Property

The Drama: A hailstorm came up suddenly. Your roof was damaged bad. Did you know that one hailstorm can cause as much as $15,000 (USD) damage, and your insurance doesn’t always cover it?

According to the National Centers for Environmental Information (NOAA), extreme weather is on the rise, as the U.S. saw 28 separate billion-dollar weather disasters in 2023. 

That’s why checking your weather data by ZIP code or GPS can be particularly helpful in asking the right questions when purchasing your policies. Many geographical locations have exceptions in their coverage, and you need to buy add-ons to get the correct coverage or see if there IS any coverage for certain weather in your area.  

Tips to prepare for the unexpected:

• Take ‘before’ & ‘after’ photos of your property so you can show them as evidence of the damage done.
• Check your deductible – read all the tiny print in your policy and make sure you can get coverage or add coverage for weather patterns.

Pop Quiz: 

1. Stuff Weather Can Do to Your Business

I know it is hard to think of all the things that could affect your business, but don’t let tricky, extreme weather be the thing you didn’t think about.

• Coverage: check for add-ons required or if you have to pay for special policies in your area.
• Seek out advice: What challenges will your business face when it is trying to grow?
• Cooling costs: Check your state for possible energy bill assistance or eco energy options with subsidies.

Extra tip: Some U.S. states offer rebates/grants for small businesses that are making energy-efficient upgrades.

1. When Weather Makes Food Far Too Expensive

The Drama: Droughts and floods and insect blights can mess with the food supply and spike prices. I think COVID was another harsh reminder that survival is paramount, and when you cannot ship food or grow it.

What can you do?

• Track the Farmers’ market prices using free weather APIs and see if you can see the trends on upcoming shortages
• Stock up on essentials like beans, pasta, and frozen veggies
• Invest in alternative heating methods for cooking
• Buy water in bulk if you anticipate a hurricane or wind

According to the U.S. Department of Agriculture (USDA), it’s the extreme weather (in these cases, hurricanes) that’s driving crop prices skyhigh.

1. What About Floods?

The Drama: Flood insurance and the cost of repairs.

As little as an inch of water can cause substantial water damage, so check your Weather Application Programming Interface (API) and your insurance coverage. 

Look for advice for precautions that may help and save people and property:

• Park on higher ground
• Never drive through water, as it could be deeper than it appears.
• Beware of missing manhole covers and sudden drops under the surface where fast-moving water might have created a collapse.
• Remember, the water that is flooding could be filled with dead animal carcasses and disease – it’s not clean.
• Be careful if using generators and fuel engines, as carbon monoxide can rise to poisonous levels if the area is not ventilated.

1. Flights and Evacuation Bills

Bad weather is bad. Extreme weather is dangerous!

The Drama: You’re at the airport, waiting at the gate. Then suddenly BAAM! The flight’s been canceled, and you’re stuck there with no hotel and nowhere to sleep. What to do?!

Hurricanes and tornadoes can be unpredictable, and sometimes you cannot get out of harm’s way in time, so you end up at a posh hotel where your life is no longer at risk, but at 500 dollars a night, how long can you stay?

• If a storm is forecast, book refundable rooms.
• GPS might fail in weather or interrupt internet services, so have a paper map to look for safe routes out.
• Stay with friends who are in safer areas and repay them by cooking and cleaning.
• Follow the information from the Authorities, and please don’t waste their time arguing about the situation; time is of the essence.

Conclusion

You can’t stop the weather, so just try to be the Boy Scout who is always prepared. Be the squirrel and not the grasshopper. 

Regardless of whether you are a homeowner or a business owner, be wise (check insurance, seal windows, check for goverment initiatives). Stay a little warmer and richer while you are growing your cauliflower in the garden.