Are You Financially Prepared to Weather a Winter Storm?

Although winter officially kicked off a short while ago, now's the time of the year when weather activity tends to pick up in a really big way. And unless you live in a warm weather climate, there's a good chance that in the coming weeks, at least one winter storm, if not more, will impact your area.

Now, not every winter storm is a major event. And those who live in snow-prone areas know how to cope when a few inches of powder grace the pavement.

But even if you're someone who's experienced their fair share of storms, when a major one hits, there's often not much you can do other than hunker down at home. It doesn't matter if you have the biggest pickup truck or the baddest snow tires in town. If a storm dumps two feet of snow in your neck of the woods, you're probably grounded for a few days. And you may be looking at problems like extended power outages, too.

For this reason, you need to be prepared logistically for a winter storm. That means stocking up on things like batteries or, if you have a portable generator, gas to power it (just make sure to store it in a proper container for safety reasons). 

It's also important to prepare your personal finances for a winter storm. Here's how.

1. Make sure you have savings to stock up on essentials

If you live on a tight budget and normally only buy a few days' worth of food at a time, having to stock up on extra items ahead of a blizzard could result in credit card debt. Review your savings account now and try to add to it if you barely have enough money to cover an additional week's worth of food.

In general, you should aim for enough savings to cover three full months of essential bills in case you lose your job. But for now, at the very least, aim to sock away a few hundred dollars in case you need to load up on food and other supplies ahead of a storm.

2. Make sure you have a financial cushion in case you can't work for a while

If you're self-employed and work from home, an extended power outage following a storm may be more than just inconvenient. It could also cost you a lot of money if you aren't able to work. 

Make sure you have a cushion in case you're forced to go without a paycheck.

Even if you have a back-up plan -- say, a standby generator and a hotspot that gives you internet access even when your main service is out -- if you have young kids, you may not be able to get work done after a storm if roads are blocked and schools can't open. So make certain you're in a position to give up a few days of pay.

3. Make sure you have enough money in the bank to cover your homeowners insurance deductible

You never know when your home might sustain damage, but that may be more likely to happen during a winter storm. So to that end, find out what your homeowners insurance deductible looks like and make sure you have enough money in savings to cover it. You'll need to shell out that money if damage occurs and you need to file a claim against your homeowners policy.

Progressive says that homeowners insurance deductibles typically range from $500 all the way up to $5,000. That's a pretty wide range, so make sure you know what your personal deductible amounts to. Some insurers also set different deductibles for your roof, which could lead to more out-of-pocket costs for you if your roof is damaged by heavy snow and ice.

A nasty winter storm could be a huge headache in more ways than one. Do your best to prepare financially so you're ready for everything Mother Nature might throw at you this season.