Hurricane Season Is Here—Here's How Your Savings And Credit Can Protect You

Forbes

3 hours ago

The streets are flooded near Peachtree Creek after hurricane Helene brought in heavy rains on ... More September 27, 2024 in Atlanta, Georgia.
When a hurricane hits, it doesn't just threaten your home—it can also take a direct hit on your finances. From lapsed insurance coverage to sky-high evacuation costs, financial gaps tend to show up during natural disasters when it's too late to fix them.
And this year, the hurricane season could be fierce.
The National Oceanic and Atmospheric Administration's outlook for the 2025 Atlantic hurricane season calls for a 60% chance of an above-normal season. That means we could see as many as 19 named storms, with up to five major hurricanes. The season officially runs from June 1 to November 30, but don't wait to prep. By the time a storm is named, it's often too late to act.
Even if you're far from the coast, you're not off the hook. Recent storms have proven that hurricanes can pack a punch hundreds of miles inland.
But here's the good news: you can get ahead of the chaos. This guide walks you through five financial moves to protect your money, home and sanity before the next storm hits.
Related: Compare rates on homeowners insurance from participating carriers through our partner Everquote
Not all hurricane insurance is the same, and not all coverage starts immediately.
"When a storm is approaching, it's often too late to add coverage," says Diane Delaney, executive director of the Private Risk Management Association, a nonprofit network of insurance industry leaders and influencers. 'Most flood policies also include a waiting period before coverage becomes effective.'
Policy activation can take up to 30 days, so it's smart to act well before hurricane season peaks.
Don't just go with the cheapest insurer; do your homework. A low price means nothing if your insurer can't pay up when disaster strikes.
Use NAIC.org to vet insurers by checking consumer complaint records and reviewing their financial strength ratings from trusted agencies like AM Best and Standard & Poor's. These agencies assess an insurer's ability to pay future claims based on their financial reserves, past performance and risk exposure. A strong rating (like 'A' or better from AM Best) means the company is financially prepared to handle a surge in insurance claims after a major disaster, so help is there when you need it.
Start by understanding what your current policy does and doesn't cover. Most standard homeowners policies cover wind but exclude flood damage, which requires separate coverage through FEMA's National Flood Insurance Program or a private insurer. Make sure your home, personal belongings and any additional structures like garages or sheds are adequately insured.
Know your deductibles and limits. Many hurricane-related claims are subject to separate hurricane or windstorm deductibles, which are often higher than your standard deductible and based on a percentage of your home's value.
For most homeowners policies, the deductible applies each time you file a claim. In Florida and Louisiana, hurricane deductibles only apply once per season, not for every storm.
Look for discounts. Delaney adds that many insurers offer discounts for storm-resistant upgrades, such as hurricane shutters, wind-rated garage doors or impact-resistant roofs. For instance, State Farm offers premium reductions in many states if you use impact-resistant roofing products like Class 4 shingles.
But more importantly, Delaney says, these features can help determine if a company will even agree to insure you in the first place.
"It's less about direct credits and more about positioning your property as a lower-risk, more insurable home," she says.
Evacuations aren't just chaotic, they can be expensive. Between gas, hotel stays, pet boarding, takeout meals and lost income, even a short evacuation can drain your wallet fast.
Start building a 'go fund' with at least a few hundred dollars. This emergency stash should be easy to access instantly, either through a checking account or a high-yield savings account (HYSA) that lets you move funds quickly.
According to Forbes Advisor, some of the top HYSA rates are up to 5.84% APY as of June 2, far more than a typical savings account. That means your emergency fund doesn't have to sit stagnant—it can grow while you prep.
Look for HYSAs with these features:
We reviewed 370 accounts across 157 banks and credit unions to find the best high-yield savings accounts. Here are our top three picks to consider:
Hurricanes bring a devastating effect: flooding. Terry Fraser, owner of Renco Home Improvements, says water is the real enemy: 'Most hurricane damage I deal with is actually water getting where it shouldn't. Get your gutters cleaned and make sure water flows away from your foundation.'
His top upgrades? Good grading, long downspout extensions and sealing basement cracks.
"Clean your gutters yourself, extend those downspouts [and] seal hairline cracks with epoxy kits from Home Depot,' he says.
Steve Grant, COO at Guardian Home, a home improvement services company, says, 'If budget is a major concern, I would highly recommend installing plywood over the windows. It's a relatively low-cost solution that offers effective protection, and the wood can be stored and reused."
His top three upgrades: reinforced windows and doors, hurricane-resistant roofing and a strong garage door. Grant says garage doors are often overlooked but can be a critical failure point.
And here's a silver lining for homeowners sitting on more equity: you may be able to tap into one of the best home equity lines of credit (HELOC) to fund storm-proofing upgrades and possibly snag a tax break in the process.
Through 2025, interest on HELOCs may be tax-deductible if the funds are used to 'buy, build or substantially improve' your primary or secondary home. That means things like impact-resistant roofing, storm shutters or reinforced garage doors could come with a financial perk. Just be sure to keep receipts and confirm deductibility with a tax pro.
Grant also recommends prepping your credit, whether you have one of the top credit cards for emergencies or not. 'Make sure you have available credit and your cards are packed,' he says.
This ensures you can front the cost of gas, food or lodging in case you need to evacuate and cash runs out. The best credit cards with 0% APR or low interest rates, or disaster relief options from banks and issuers may help bridge the gap if federal aid is delayed.
While debit cards might work at the grocery store, they can fall short in critical situations.
For example, if you need to rent a car, some companies will not accept debit cards at the time of pickup. Avis requires a credit card for its Select Series and many premium vehicles, and certain U.S. locations—like those in northern and central New Jersey or the Philadelphia area—won't accept debit cards for any rental. Hertz may also perform a credit check when you use a debit card, which could delay or block your reservation entirely.
Credit cards, on the other hand, typically allow for faster booking, broader acceptance and access to benefits like rental car insurance, emergency travel assistance or temporary credit limit increases. Some credit card issuers even offer disaster relief options, including deferred payments or waived late fees, which can provide breathing room during recovery.
Carry at least one major credit card with available credit when you evacuate, and make sure it's packed with your go-bag essentials.
A no-annual-fee credit card is a smart backup to keep in your go bag during hurricane season, as it offers emergency spending power without adding to your annual costs. Our top choices for no-fee credit cards earn strong points or miles and include extras like cellphone protection, travel coverage and 0% intro APRs.
If the power goes out, ATMs will go offline and card readers won't work. And while FEMA aid may come eventually, it's rarely immediate.
Keep $200 to $500 in small bills stashed safely at home to cover essentials like gas, tolls or food during the first few days of disruption. Banks might close. Mobile banking might fail. Cash is still king in a blackout.
This isn't your emergency fund for job loss, this is your storm stash. It should be accessible, not tucked in a long-term savings account. Consider small denominations, such as $5s and $10s, which are easier to use when exact change is needed or systems are down.
Getting your finances in order is just one part of hurricane prep. Now's the time to stock up on food, water, meds and essentials for every family member, including pets. Build a plan that fits your household's specific needs, from accessible transportation to shelter options.
Don't forget to download the FEMA app for real-time alerts and emergency resources. To get the FEMA app, head to the Google Play Store (for Android) or the Apple App Store (for iPhone). You can also text ANDROID or APPLE to 43362 (4FEMA), and you'll receive a direct download link for your device.
The more you prepare now, the safer and less stressful your next storm season will be.
Related: Compare rates on homeowners insurance from participating carriers through our partner Everquote