An enormous winter storm is threatening to wreak havoc throughout the U.S. within the days forward — and probably take a monetary toll on households in its path.
The Nationwide Climate Service stated Friday that it expects a “important, long-duration winter storm” to deliver heavy snow, sleet and freezing rain to broad swath of the U.S., from the Southern Rockies to New England, lasting from Friday by way of Monday.
Snowfall could exceed a foot in sure areas, whereas “regionally catastrophic ice accumulations” and frigid temperatures could set off long-term energy outages, intensive tree injury and widespread journey disruptions, based on the Nationwide Climate Service.
The storm could affect greater than 170 million households, the Nationwide Climate Service stated early Friday.
Regardless of the monetary prices of such storms, households can take steps to dampen the financial hit, monetary specialists stated.
“A giant price of winter storms is the aftermath of dwelling injury and accidents,” based on Carolyn McClanahan, a licensed monetary planner and founding father of Life Planning Companions in Jacksonville, Florida. McClanahan is a member of CNBC’s Monetary Advisor Council. “Individuals needs to be preemptive in getting ready for this storm. Be sure you cowl pipes, usher in vegetation or cowl them, and refill on provides so you do not have to exit.”
Here is what to know concerning the potential monetary impacts and methods to put together.
Winter storm insurance coverage claims common $15,400
Winter storms may cause all types of bodily injury to a house — something from water injury attributable to frozen, burst pipes to tree limbs that buckle underneath the burden of ice and wreck your roof.
Fortunately, these with householders insurance coverage can usually recoup prices for injury from wind, snow, extreme chilly and freezing rain, stated Karen Collins, vice chairman of property and environmental on the American Property and Casualty Insurance coverage Affiliation, a commerce group.
Customers carry snow shovels at a ironmongery shop in Philadelphia, Jan. 23, 2026.
Joe Lamberti | Bloomberg | Getty Pictures
The common insurance coverage loss claimed for water injury and freezing was $15,400 from 2019 to 2023, based on the Insurance coverage Data Institute. The common for wind and hail was about $14,700.
Customers filed greater than 20,000 claims for frozen pipes and winter water injury from January 2024 by way of June 2025, totaling over $628 million in paid losses, based on State Farm, an insurer. The common declare fee exceeded $30,000, it stated.
Protection for policyholders will rely on the nice print, nevertheless.
For instance, most owners’ insurance coverage covers “sudden and unintended” water injury from a burst pipe if the house was correctly heated and wasn’t left unoccupied, based on the Massachusetts Division of Insurance coverage.
Consultants suggest preserving your property heated to no less than 65 levels Fahrenheit to assist maintain pipes from freezing.
“The temperature contained in the partitions the place the pipes are situated is considerably colder than the partitions themselves,” based on the Insurance coverage Data Institute. “A temperature decrease than 65 levels won’t maintain the within partitions from freezing.”
That won’t all the time be attainable.
Throughout the so-called “Texas Freeze” in 2021, the most expensive winter freeze occasion in U.S. historical past, a chilly spell led to widespread energy outages that prevented folks from heating their properties, finally resulting in sizable insured losses from water injury and burst pipes, stated Collins.
Owners may also help by insulating inside and exterior pipes, opening the water taps in sinks to permit a sluggish trickle of water and assist forestall freezing, and establish the placement of the primary water shut-off valve in case a pipe bursts and they should shut the water off, based on the American Property and Casualty Insurance coverage Affiliation.
The draw back of stocking up
Throughout the nation, customers are stockpiling groceries forward of the intense chilly snap.
Whereas it could make sense to purchase sure gadgets because the climate worsens, stockpiling is never a good suggestion, specialists stated.
In lots of instances, “widespread stockpiling forward of a winter storm usually doesn’t make sense,” stated Amir Mousavian, professor of provide chain administration on the College of New England’s School of Enterprise.
“Households ought to plan to have sufficient meals and important gadgets to get by way of just a few days in case journey is quickly restricted, however there’s little profit to purchasing far past that,” he stated.
Though there could also be some financial savings advantages to purchasing in bulk, “there’s additionally an actual threat that households overbuy perishable gadgets, resulting in waste and misplaced cash,” Mousavian stated.
Usually, the sort of shopping for can backfire, he stated.
Empty cabinets at a Wegman’s grocery retailer in Fairfax, VA on Thurs. Jan. twenty second as a significant winter storm is about to hit a lot of the US on Saturday.
Stephanie Dhue | CNBC
Costs go up when provide is restricted however demand rises. Meals costs — greater than many different shopper items — may be particularly risky resulting from supply-and-demand components.
“Sudden surges in demand can pressure provide chains,” as witnessed in the course of the Covid pandemic, Mousavian stated. “Trendy provide chains are extremely environment friendly, however they aren’t designed to soak up sharp, synthetic spikes in demand, and people spikes can finally drawback customers.”
Journey disruptions could come at a price
Airways have already canceled 1000’s of flights because the winter storm looms.
A number of main airways, together with Delta and United, have already introduced change price waivers for vacationers whose itineraries could also be impacted by the approaching winter storm.
Profiting from these presents may very well be clever for some vacationers, specialists stated.
For instance, in case you have a non-essential journey booked and also you’re in a position to reschedule it for every week or so from now, it could be a good suggestion to go forward and alter your flight, stated Nick Ewen, senior editorial director at The Factors Man.
An in depth view of a departures board displaying delayed flights at Orlando Worldwide Airport (MCO) on November 09, 2025 in Orlando, Florida.
Andrew Wevers | Getty Pictures
If an airline cancels your flight and you do not settle for any rebooking choices, then you would get a full refund, Ewen stated.
Nonetheless, should you select to cancel the flight your self, chances are you’ll solely be entitled to a credit score or voucher with the airline, except you paid for a completely refundable flight. You’d additionally lose out on a full refund in case your authentic flight is canceled, Ewen stated.
“For those who’ve already proactively modified it, you are now on that new flight and that new itinerary, these new days, and then you definately’d be topic to no matter coverage is in place for that new ticket,” he stated.
Be sure you have your airline’s app downloaded and notifications turned on so you’re knowledgeable about any adjustments to your flight, he stated.
For rental automobiles, most corporations will let you make adjustments or cancellations to your reservation as much as the time of pickup, Ewen stated. However that will not maintain true should you booked by way of a third-party, resembling a journey web site or your bank card firm, the place you usually pay upfront.
Motels usually provide free cancellations as much as 24 or 48 hours upfront of your keep, but it surely is dependent upon your reservation. For those who booked at a non-refundable fee, you might not be entitled to a full refund, but it surely’s value calling the lodge and explaining the state of affairs, particularly if it is weather-related, Ewen stated.
“It isn’t a assure, however should you name [and] you clarify the state of affairs, chances are you’ll be eligible for them to be slightly bit extra lenient,” he stated.
Some bank cards provide journey interruption protection, although, he stated. If the lodge will not refund you, you should still be capable to file a declare together with your bank card firm and get your a reimbursement so long as you paid with that card.
A separate journey insurance coverage coverage could provide extra protections, too.
Put together for an even bigger heating invoice
Many households can count on larger heating prices as temperatures dip and extra energy is required to maintain properties heat.
When chilly climate hits, particularly over a big swath of the nation, there’s typically elevated vitality demand for area heating, based on the U.S. Vitality Data Administration. That in flip raises demand for each electrical energy and pure gasoline.
The spot value of pure gasoline has risen sharply during the last week to $8.15 per million British thermal models on Jan. 22 from $5.19 every week earlier. Greater wholesale pure gasoline costs usually contribute to larger wholesale electrical energy costs, based on the EIA.
Customers have already felt the pinch of upper electrical energy prices. A few of that’s attributed to the event of information facilities, which energy synthetic intelligence and place further demand on the electrical grid.
In accordance with the newest studying of the shopper value index, electrical energy costs had been up 6.7% in December from a 12 months earlier.
In the meantime, for properties that use heating oil, the per-gallon price was $3.66 as of Jan. 19, a drop from $3.93 a 12 months earlier, based on the EIA.
Courtney Fieldman, utility program director for the Southwest Vitality Effectivity Program, provided the following tips for saving vitality — and due to this fact cash — in the course of the frigid climate on its method:
- Optimize your thermostat. Throughout the day, when there’s nonetheless warming daylight, setting your property’s temperature a bit decrease — to 65 to 68 levels Fahrenheit — can maintain you comfy, in addition to trim 10% off heating prices.
- Block drafts. Use towels, blankets and even rolled-up garments to seal gaps underneath doorways and home windows, and shut off unused rooms by shutting doorways and vents to maintain warmth the place you want it. These air leaks round home windows, doorways and attics can waste as much as 30% of warmth.
- Use pure warmth and minimize non-essentials. Open curtains on sunny sides of your home in the course of the day and shut them afterward to entice the warmth in. Put on heat layers, flip off lights in empty rooms and use blankets as a substitute of area heaters if attainable to keep away from further draw throughout peak hours.
