hurricane

Hurricane Costs: Florence to Cost Hundreds of Billions

September 17, 2018 By Amanda Blankenship Leave a Comment

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 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

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.

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.

Will Heatwaves and Rainstorms Set New Records This Summer?

May 21, 2018 By Jackie Cohen Leave a Comment

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.

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.

How to Rebuild When There’s a Severe Shortage of Construction Workers

September 21, 2017 By Jackie Cohen Leave a Comment

Maybe it’s the best of times and the worst of times for construction workers — but perhaps not the best time for those who want to hire construction workers.

Average National Gas Price Sinks to $3.50 According to AAA

August 4, 2014 By Jeffrey Strain 4 Comments

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.