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Preparing for a Hurricane

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Hurricane Dorian had a significant impact on the southeastern United States. It caused flooding and other damage in North Carolina and Virginia. Hurricane season lasts from June through November, and storms are named in alphabetical order. This year has seen a surprisingly quiet season. We are only on the letter “D” in September.

Major Storm

Hurricane Barry hit Louisiana in July. It was a Category 1 storm with winds that reached 75 mph. The state experienced flooding and storm surges, yet that was the lowest-rated storm. Unfortunately, Hurricane Dorian may be the country’s first major storm, estimated at Category 4, this year. It could have winds between 130 and 156 mph before slowing down once it makes landfall.

The Saffir-Simpson Hurricane Wind Scale states the following for the current forecast:
“Catastrophic damage will occur: Well-built framed homes can sustain severe damage with loss of most of the roof structure and/or some exterior walls. Most trees will be snapped or uprooted and power poles downed. Fallen trees and power poles will isolate residential areas. Power outages will last weeks to possibly months. Most of the area will be uninhabitable for weeks or months.”

State of Emergency

As unpredictable as meteorology can be, the current administration proactively declared a state of emergency for Florida and about a dozen counties in Georgia. Local news channels are providing constant updates and not much else. Homeowners’ associations and city halls are sending out notices to prepare in advance. Schools and organizations have canceled weekend activities. Concerts and festivals have also been canceled or rescheduled for a later date to ensure safety.

There are over 20 million people in the state of Florida alone. The evacuation in 2017 left many stranded on major highways due to traffic jams that lasted for hours. Many gas stations ran out of fuel causing some to close temporarily. The storms tore through the entire state from the southeast to the panhandle, before continuing north.

Prepare for the Worst

Grocery stores are selling out of bottled water, and gas stations have long lines. Many consumers are filling prescriptions and refueling now in case there is a mandatory evacuation later. Residents are using sandbags and hurricane shutters to protect against the high winds and flash flooding predicted for the upcoming week. If you own stock in Home Depot, Lowes, any grocery chains, or any petroleum or oil companies, you might see a spike in value over the next few days.

One item that some might forget to replenish is cash. Since we’re in a digital society, many people no longer carry cash. However, if the power goes out, any stores that happen to open probably won’t accept any cards or digital wallets. Additionally, the most accessible ATMs may run out quickly, so visiting a brick and mortar bank may be the most reliable option.

If you live on the east coast or the Gulf of Mexico, it may be a good idea to have important documents, cash, water, and non-perishable food on hand, just in case. Check your local news for updates on any safety risks in your area.

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Hurricane Costs: Florence to Cost Hundreds of Billions

How to Prepare for Summer Rainstorms and Hurricanes

3 Ways on How Climate Change Can Impact Your Finances

Hurricane Costs: Florence to Cost Hundreds of Billions

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Hurricane costs

Over the years, the overall hurricane costs have increased with each natural disaster. Hurricane Florence will be no different. The storm could cost the East Coast as much as $170 billion in damages and lost productivity. In New Bern, NC alone, more than 4,300 homes have been absolutely destroyed. Wilmington and many other coastal towns are still completely unreachable by car and it may remain that way for days.

Hurricane Costs Reach Hundreds of Billions

While the $170 billion estimates may seem high, flooding from Hurricane Florence has completely cut off access to coastal towns. Towns on the coast often rely on tourists to keep their economy going. Most businesses were forced to shut down completely for evacuation. Not to mention, destroyed homes and at least 23 individuals confirmed dead, with numbers climbing.

Below is a graphic of the most costly hurricanes in U.S. history from the National Oceanic and Atmospheric Administration, with Katrina still leading the way. If estimates are correct, Florence will surpass that.

Hurricane florence

Hurricane Flood Insurance Payouts

Katrina led the way with more than 167,000 flood insurance payouts, reaching $16 billion in total cost. On average, each payout was less than $100,000. Estimates of insurance payouts for Hurricane Matthew (2016) range from $1.5 billion to $7 billion. Hurricane Sandy, another high-cost hurricane, led to $18.75 billion in insured property loss.

Personal Cost of a Hurricane

Cost of hurricanes

Outside of the obvious property loss and damage, many of these areas will suffer serious economic impacts in the months to come. Many individuals aren’t able to return home or travel far from home right now. Those who stayed are trapped inside with no stores, gas stations, or restaurants open locally. Individuals who evacuated often have to spend money to stay in hotels.

Because Hurricane Florence came so far inland and many areas are still unreachable, it will still be quite some time before we know the true cost of the storm.

hurricane costs

 

First Person Account of Hurricane Florence

Less than 30 miles down the road from where I live, homes and cars are floating away, a one-year-old child’s life was lost, and people are still without power. Many people will also be unable to go to work due to road access or their place of work being flooded.

Locally (in Charlotte, NC), we’ve been extremely lucky. We have had some trees down and some flooding. Although we’ve been stuck inside with many roads blocked off for a few days, we’re thankful for our safety and how we faired during this devastating storm.

Readers, have you been impacted by Hurricane Florence? Join the discussion on hurricane preparation in the Saving Advice forums. 

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Will Heatwaves and Rainstorms Set New Records This Summer?

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Heatwaves and rainstorms are going to set new records this summer -- expect lots of heatwaves and rainstorms.

With the unofficial start of the summer — Memorial Day weekend — just around the corner, preliminary weather forecasts indicate that the season might see record-level heatwaves and rainstorms.

This could include an above average number of hurricanes — apparently 14 of them will be serious enough to get named, according to meteorology researchers at Colorado State University.

AccuWeather says the hurricanes will hit the northeastern and mid-Atlantic states along the coast. There will also be rainstorms all across the southern portion of the U.S. throughout the summer.

Heatwaves and Rainstorms

The expected high temperatures in much of the U.S. will continue a trend that has become the norm for most of the past two decades: hotter than average summers that just might reach toward record territory.

In fact, the National Oceanic and Atmospheric Administration says the summers of 2010, 2011, 2012 and 2016 rank among the top 10 hottest summers of the past century-and-a-quarter.

In some parts of the U.S., the intense heat will be accompanied by drought, and in some of those areas, there could be the increased risk of wildfires, particularly in southern California.

So what does this seasonal forecast mean for you and your finances?

Get Ready for Summer

For starters, make sure you have at least one good fan that works — don’t wait until a heatwave to obtain one or you’ll probably pay top price for it.

If your home has air conditioning, now’s a good time to make sure the entirety of it is clean and functioning — if not, take care of it right away so you don’t get stuck in a bind during peak season.

If you live in an area that’s prone to drought, stock up on water if possible. Also get at least one emergency kit ready in case of wildfires. Stash one in your home near an exit, put another one in your car, and another at the office.

People who live along the coastline or other areas prone to hurricanes should also check to see whether their emergency kits are good to go.

Even if you don’t live in a hurricane-prone area, it doesn’t hurt to be prepared for the likelihood of flooding.

Whatever you can do to prepare for the season’s extreme weather will help you get through it with minimized discomfort.

Readers, are you ready for potentially record-setting weather this summer? What’s your opinion about the seasonal forecast and climate change? Please let us know your thoughts by posting in the comments section beneath this article.

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If you liked this article, you might like these other stories about personal finance issues related to the weather.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

 

Average National Gas Price Sinks to $3.50 According to AAA

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AAA average gas price is $3.50 and falling
More good news for motorists trying to save money. Only a few days into August, and the trend of declining gas prices, which began in July (30 of the 31 days in July saw a decrease in gas prices), has continued to the point where the national average for a gallon of gasoline is now $3.50 according to AAA. That’s 2 cents less than it was last week and 16 cents less than it was a month ago. It’s also 12 cents less than it was a year ago. It’s also a nice change of pace from June when gas prices were increasing.

The drop in gas prices goes against conventional wisdom where gas prices have risen in July for the previous three straight years. In fact, prices have fallen so much that the average price in California has fallen to under $4.00 a gallon, leaving only consumers in two states (Hawaii and Alaska) having to pay more than this amount.

The primary force behind the lower gas prices is refinery production taking place at record levels. Energy Information Administration says During US refineries processed the most crude oil they had ever done so during the month of July. When refineries are processing oil efficiently, the result is usually large gasoline supplies, which then brings down the price of gas. AAA spokesman Avery Ash sums up what’s happening by noting, “Falling gas prices are nearly the opposite of what we usually see this time of year. Refineries are running at full tilt and there is more than enough gasoline in the market, which has helped bring down prices despite multiple overseas conflicts.”

The trend of lower gas prices looks set to continue as long as there are not major disruptions in supply. The biggest threat in August would be a hurricane hitting and disrupting production and processing. As Ash points out, “Gas prices may cost less than in recent years this August, as long as refinery production remains strong and oil costs do not rise due to unexpected issues. The biggest threat to continued falling prices would be a major hurricane striking the U.S. Gulf Coast. Prices also could rise or remain flat if refineries cut back on production or if there are any major refinery outages.”

Despite the lower gas prices, that doesn’t mean you should stop doing the little things that can help you save money on gas. In fact, a great idea would be to take the savings you’re getting from the current lower gas prices and place it into a savings account to use when the prices begin to go up again, because we all know they eventually will.