How to financially prepare for natural disasters: Hurricane edition

Check out our complete hurricane relief guide

You’ve stocked up on food, secured your home, and planned your evacuation route. But is your financial safety as prepared as your hurricane kit?

According to the National Oceanic and Atmospheric Administration (NOAA), the US experienced 27 billion-dollar weather and climate disasters in 2024 alone. The costs of evacuation, property damage, and lost income can devastate unprepared families. But the right financial strategies can mean the difference between fast recovery and years of hardship.

In this guide, you’ll learn:

• How to prepare for a natural disaster by securing your finances in advance
• Steps to build an emergency fund and budget
• How to use digital tools for quick access to money
• Financial strategies before, during, and after a hurricane

Taking action now can safeguard your finances and speed up recovery.

Understanding the financial impact of natural disasters

The true financial impact of a hurricane starts before the storm even makes landfall and continues well after it passes.

Families often face mounting costs, including:

• Evacuation costs: For most individuals, the first hurdle is to get out. Packing up and hitting the road isn’t just a logistical challenge, but also an expensive one. Evacuation costs can soar past 3,000 USD per household, factoring in fuel, lodging, and food along the way. Unfortunately, many families are unable to afford these expenses, and they end up taking their chances at home instead.
• Temporary shelter: The cost of temporary shelter is another financial storm survivors must weather. The American Hotel & Lodging Association, projects the average US hotel room costs 162 USD per night. For families who must stay in hotels for weeks or months while rebuilding, this quickly adds up.
• Rebuilding and repair: Storm damage repairs range widely – from 3,000 USD to 7,000 USD. More extensive damage, such as full roof replacements, can push costs significantly higher.

The reality is clear. Hurricanes don’t just devastate homes. They also drain bank accounts. Unfortunately, too many families face them unprepared.

A US News and World Report survey found that 42% of Americans lack emergency funds, leaving many vulnerable to disaster costs. Building a financial safety net by budgeting for emergencies can help you cover evacuation, housing, and rebuilding costs—without relying on costly credit cards.

Why financial preparedness is critical

Financial preparedness is crucial for US families living in hurricane-prone areas.

Inadequate planning can lead to significant long-term challenges such as:

• Job disruptions: Hurricanes often cause extensive damage to businesses and infrastructure, leading to job losses and lost income. For example, hurricanes Katrina and Rita in 2005 caused substantial employment disruption.
• Debt accumulation: The immediate costs associated with evacuation, temporary housing, and rebuilding can force families to turn to high-interest loans or credit cards as a last resort.
• Delayed recovery: Rebuilding takes longer without sufficient savings or access to financial aid. The financial aftermath of hurricanes leads many to make significant lifestyle changes and even reconsider living in high-risk areas.

Creating an emergency fund can help prevent these outcomes. Families with sufficient emergency savings are better positioned to manage disaster expenses.

Common financial mistakes during natural disasters

Avoiding financial troubles is key to staying afloat after a storm. Common mistakes include:

• Over-relying on credit cards for immediate expenses. High-interest debt can pile up fast, making it even harder to regain financial stability.
• Not keeping emergency cash for banking disruptions. Power outages and bank closures can make it difficult to access funds when you need them.
• Falling behind on rent or mortgage payments. Missing due dates can put your home at risk, adding another layer of stress to an already stressful situation.

Building a financial safety net and prioritizing financial preparedness can help you avoid these setbacks and speed up the recovery process.

How to prepare for a natural disaster financially

The financial cost of disasters is unavoidable, but the stress of scrambling for money can be. A solid financial plan helps you focus on safety rather than financial survival when a storm hits.

Creating an emergency fund for natural disasters

Ideally, an emergency fund should cover about three to six months’ worth of essential expenses. This might seem intimidating, but even small, consistent contributions can build up over time.

Here’s how to get started:

• Calculate essential costs: Budgeting for emergencies is a critical first step, but it’s not always enough on its own. You also need to know how to create a budget you can stick to. List out your must-have expenses, such as rent or mortgage, utilities, food, transportation, and medical needs. A realistic and sustainable budget will help you stay on track with your savings goals and give you the confidence to face unexpected challenges.
• Set a savings goal: Keep it realistic. Start small if needed. For example, you could start with a goal of 1,000 USD and work up from there. Every bit helps.
• Automate contributions: Scheduling recurring transfers to an interest-bearing account can help you stay disciplined in saving—and potentially accumulate funds faster. A separate high-yield savings account not only passively grows your savings but can reduce the temptation of accessing your funds.
• Stay consistent: Regular deposits, even small ones, add up over time.
• Adjust as needed: Review your savings periodically and modify your goals.

Creating an emergency fund is about more than money; it’s peace of mind. It’s a critical step in ensuring your financial stability when disaster strikes.

Benefits of a digital wallet for disaster preparedness

In a disaster, access to cash can be limited if banking services are disrupted. Digital wallets offer reliable, instant access to funds when traditional banking is unavailable. A digital wallet helps ensure you can still pay for the essentials, no matter what’s going on.

Imagine needing to evacuate and not being able to access savings. There are some major benefits to digital wallets, which can a game-changer if you find yourself in this situation. Here’s how:

• Instant access: Digital wallets allow you to make quick transactions without cash, which is vital for acquiring needed supplies or covering evacuation expenses.
• Secure storage: Your money is stored digitally and securely, helping protect it from theft or loss.
• Easy tracking: You can monitor spending during and after the disaster, potentially making it easier to budget and file insurance claims later.
• Accessibility: Access your funds from anywhere with digital devices and an internet connection, even if you’ve evacuated to another state.

Financial preparedness before, during, and after a hurricane

Taking a few key steps now can help you stay in control before, during, and after the storm. This section provides a step-by-step guide to managing your finances through all phases of a hurricane, ensuring you’re prepared for whatever comes your way.

Before a hurricane: Getting your finances in order

When a hurricane is approaching, every moment counts. Taking these steps before landfall can help you prepare for a hurricane’s financial impact.

Here’s what you should do:

• Have cash in hand: Keep a small amount of cash readily available for immediate needs during power outages when electronic transactions might not be possible.
• Review your insurance: Review all policies (including homeowners or renters, flood, and auto) to understand your insurers’ coverage, deductibles, and claims procedures. Ensure you have adequate coverage. For example, many homeowners aren’t covered for flood damage—even in places known for flooding. In flood-prone Buncombe County, North Carolina, for instance, less than 1% of homes were covered by the National Flood Insurance Program (NFIP) as of December 2022.
• Ensure digital access to your financial information: Make sure you can access your bank accounts and financial information digitally, even if local branches are closed. Digital banking also helps you track expenses in real time, making it easier to manage spending before, during, and after the storm. For security, use strong passwords and consider a password manager.
• Secure your documents: Store essential financial documents (e.g., insurance policies, bank statements, tax records) in a waterproof and fireproof container, ideally in a safe place or with a trusted friend or family member outside the immediate hurricane zone.

During a hurricane: Staying financially safe

During a hurricane, your safety is the absolute priority. But protecting your finances during the storm is also important.

While sheltering, prioritize:

• Protecting valuables from water or wind damage
• Maintaining mobile banking access for quick transactions
• Being cautious of scams, as disaster fraud is common
• Documenting property damage for insurance claims and disaster assistance applications

After a hurricane: Rebuilding financial stability

Recovering financially after a hurricane takes time. While immediate safety is the priority, strategic financial steps can help you get back on track.

Here are some steps you can take:

1. Request support: Look into Federal Emergency Management Agency (FEMA) assistance, Red Cross aid, and state or local relief programs to help cover essential expenses. Apply as soon as possible, as funds may be limited.
2. Contact your creditors: Many banks, lenders, and utility companies offer deferred payments, waived late fees, or emergency assistance after a disaster. Reach out to discuss your options.
3. Manage recovery expenses: Avoid unnecessary spending—prioritize essentials such as housing, food, and medical needs first. Be cautious with credit cards and loans to avoid long-term debt.

Post-hurricane, you may face difficulties with banking access. Having a secure, flexible way to store money outside a bank account—like a digital wallet or reloadable prepaid card—can keep your funds accessible without relying on a traditional bank account.

Financial tools and resources for hurricane preparedness

Financial planning before and after a hurricane is easier with the right tools.

Top financial apps for emergency planning

Mobile apps can simplify budgeting and financial tracking before, during, and after a disaster.

Consider these:

• Empower (formerly Personal Capital): Offers real-time financial tracking, budgeting tools, and investment insights, which are essential for managing funds during a crisis.
• FEMA App: Provides real-time emergency alerts, disaster recovery guidance, and direct links to federal relief programs.
• PocketGuard: Prevents overspending by categorizing expenses and helping users allocate emergency funds wisely.
• Goodbudget: Based on the envelope budgeting system, this app helps families divide funds for necessities, including evacuation, repairs, and post-storm expenses.
• You Need a Budget (YNAB): Guides users in preparing financial plans for unexpected costs, so your emergency savings remain intact.

Many banks and credit unions also offer mobile banking apps with automated savings features and emergency fund tracking, making them valuable resources during uncertain times.

While these budgeting tools help prepare financially, access to fast and secure money transfers is just as crucial in a disaster. That’s where Western Union comes in.

Leveraging the Western Union® mobile app during disasters

For those who need to send or receive emergency funds quickly, the Western Union® mobile app is a reliable option. It enables you to:

• Send emergency funds: Send money to family or friends affected by hurricanes, even if local banks are closed or inaccessible.

• Receive transfers: Receive transfers securely in multiple ways (cash pickup at available agent locations, bank deposit, or digital wallet).

• Track transactions: Track expenses and manage transactions digitally, giving you a clear record of your financial activity during a challenging time.

Community-based financial resources for disaster recovery

Government and nonprofit organizations provide financial relief after hurricanes. Key resources include:

• FEMA disaster assistance: Offers grants for temporary housing, home repairs, medical expenses, and other disaster-related costs.
• Red Cross financial aid: Provides short-term relief funds for shelter, food, and necessities. Assistance may be available through local Red Cross chapters or emergency shelters.
• State and local recovery funds: Many states and municipalities offer grants, loans, or rental assistance. Check with your state’s emergency management agency or local relief organizations for more information.

How to help others financially during natural disasters

Once your finances are secure, you may want to help those around you after a natural disaster. Here are some ways to support loved ones and communities during the recovery process.

Donating to reputable organizations

Scams often emerge during crises, so it’s crucial to donate wisely. Before giving, verify charities through:

• Charity Navigator: Rates nonprofits based on transparency and effectiveness.
• Better Business Bureau (BBB) Wise Giving Alliance: Evaluates organizations for ethical fundraising and governance.
• Government lists: FEMA and the Red Cross provide lists of legitimate organizations providing disaster recovery services.

Sending money directly to family and friends

When disaster strikes, sending money to family and friends fast is a priority. Secure services like Western Union offer quick money transfers via cash pickup or digital delivery. That way, they receive funds when they need them most.

Don’t wait for the storm: Secure your finances today

A hurricane can pass in hours, but its financial impact can last for years. The key to resilience is preparation. Without a financial plan, the road to recovery can be challenging, forcing families to make difficult choices about housing, debt, and daily needs.
Instead of reacting after disaster strikes, proactive planning ensures stability and control when it’s needed most.
Disasters may be unpredictable, but your financial security doesn’t have to be left to chance. Preparedness gives you options, reduces stress, and ensures you can rebuild on your own terms. The best time to act is before the storm hits.