Some homeowners not prepared for financial ramifications of natural disasters

More than one in four American homeowners say they feel financially unprepared for the costs of extreme weather events, Bankrate’s 2024 Extreme Weather Survey revealed. Those in the Midwest said they were most likely to be prepared for the costs associated with extreme weather.

“Disaster preparedness isn’t the most fun or urgent task under normal circumstances, but it’s very important,” said Bankrate senior industry analyst Ted Rossman. “If you wait until a storm is bearing down on your area, it’s too late. Take steps to get ready ahead of time, such as building an emergency fund, signing up for sufficient insurance coverage, making necessary home improvements, and gathering needed supplies.”

Additionally, nearly two out of five homeowners said they have not done anything to their property in the last five years to prepare for extreme weather.

Also, 39% of homeowners said they have not reviewed their insurance in the last five years to ensure they have the proper coverage.

Not surprisingly, those in lower income brackets were least prepared for extreme weather. Thirty-six percent of homeowners with household incomes below $50,000 said they were unprepared financially for extreme weather events, compared to 18% among those with household incomes over $100,000.

They survey found that about 65% of households say they could afford to pay their insurance deductable if they needed to make a claim.

BBB offers tips

If you’re unsure what to do to prepare for adverse weather, the Better Business Bureau has offered some helpful tips to prepare.

Here are a few things the BBB recommends:

Get familiar with your home
Make sure your home is ready
Check your insurance coverage
Make an emergency plan
Know about common scams
Watch for fly-by-night contractors
Research companies with BBB
Don’t sign over insurance checks to contractors

With a potential hurricane looming in the Gulf of Mexico, and other natural disasters that could occur, the group recommends being ready for repairs after a storm strikes.
“Scammers might try to take advantage of the stress after a disaster, especially if repairs are needed,” said Michelle L. Corey, BBB St. Louis president and CEO. “We recommend consumers take a step back and research potential contractors carefully to find someone who is reliable and qualified.”

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