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 mentioned Friday that it expects a “important, long-duration winter storm” to carry heavy snow, sleet and freezing rain to a broad swath of the U.S., from the southern Rockies to New England, lasting from Friday by way of Monday.
Snowfall might exceed a foot in sure areas, whereas “domestically catastrophic ice accumulations” and frigid temperatures might set off long-term energy outages, in depth tree harm and widespread journey disruptions, in accordance with the climate service.
The storm might have an effect on greater than 170 million Individuals, the climate service mentioned early Friday.
Regardless of the monetary prices of such storms, individuals can take steps to dampen the financial hit, monetary consultants mentioned.
“An enormous value of winter storms is the aftermath of house harm and accidents,” in accordance with 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. “Folks must be preemptive in making ready for this storm. Be sure you cowl pipes, herald vegetation or cowl them, and fill up on provides so you do not have to exit.”
Here is what to know in regards to the potential monetary impacts and easy methods to put together.
Winter storm insurance coverage claims common about $15,000
Winter storms could cause all types of injury to a house — from water harm attributable to frozen, burst pipes to a roof wrecked by tree limbs that buckle below the burden of ice.
Fortuitously, these with owners insurance coverage can usually recoup prices for harm from wind, snow, extreme chilly and freezing rain, mentioned Karen Collins, vice chairman of property and environmental on the American Property and Casualty Insurance coverage Affiliation, a commerce group.
Consumers carry snow shovels at a ironmongery store in Philadelphia, Jan. 23, 2026.
Joe Lamberti | Bloomberg | Getty Pictures
The typical insurance coverage loss claimed for water harm and freezing was $15,400 from 2019 to 2023, in accordance with the Insurance coverage Data Institute. The typical for wind and hail was about $14,700.
Customers filed greater than 20,000 claims for frozen pipes and winter water harm from January 2024 by way of June 2025, totaling over $628 million in paid losses, in accordance with an evaluation by insurer State Farm of its closed and paid owners claims. The typical declare cost exceeded $30,000, it mentioned.
Protection for policyholders will rely upon the positive print, nonetheless.
For instance, most owners insurance coverage covers “sudden and unintentional” water harm from a burst pipe if the house was correctly heated and wasn’t left unoccupied, in accordance with the Massachusetts Division of Insurance coverage.
Consultants advocate protecting your own home heated to not less than 65 levels Fahrenheit to assist preserve pipes from freezing.
“The temperature contained in the partitions the place the pipes are situated is considerably colder than the partitions themselves,” in accordance with the Insurance coverage Data Institute. “A temperature decrease than 65 levels won’t preserve the within partitions from freezing.”
However protecting your own home heated might not all the time be attainable.
In the course of the so-called “Texas Freeze” in 2021, the most costly winter freeze occasion in U.S. historical past, a chilly spell led to widespread energy outages that prevented individuals from heating their houses, finally resulting in sizable insured losses from water harm and burst pipes, Collins mentioned.
Householders can assist by insulating inside and exterior pipes, opening the water taps in sinks to permit a gradual trickle of water and assist forestall freezing, and determine the situation of the principle water shut-off valve in case a pipe bursts and they should shut the water off, in accordance with the American Property and Casualty Insurance coverage Affiliation.
The draw back of stocking up
Throughout the nation, shoppers are stockpiling groceries forward of the acute chilly snap.
Whereas it might make sense to purchase sure gadgets because the climate worsens, stockpiling is never a good suggestion, consultants mentioned.
In lots of circumstances, “widespread stockpiling forward of a winter storm usually doesn’t make sense,” mentioned Amir Mousavian, professor of provide chain administration on the College of New England’s Faculty of Enterprise.
“Households ought to plan to have sufficient meals and important gadgets to get by way of a couple of days in case journey is briefly restricted, however there may be little profit to purchasing far past that,” he mentioned.
Though there could also be some financial savings advantages to purchasing in bulk, “there may be additionally an actual threat that households overbuy perishable gadgets, resulting in waste and misplaced cash,” Mousavian mentioned.
Usually, this sort of stockpiling can hurt shoppers typically, he mentioned.
Empty cabinets at a Wegman’s grocery retailer in Fairfax, Virginia, on Jan. 22, 2026, as a serious winter storm is ready to hit a lot of america.
Stephanie Dhue | CNBC
Costs go up when provide is proscribed however demand rises. Meals costs — greater than many different shopper items — could be particularly unstable on account of supply-and-demand components.
“Sudden surges in demand can pressure provide chains,” as seen through the Covid pandemic, Mousavian mentioned. “Fashionable 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 shoppers.”
Journey disruptions might come at a value
Airways have already canceled hundreds of flights because the winter storm looms.
A number of main airways, together with Delta and United, have already introduced change payment waivers for vacationers whose itineraries could also be affected by the approaching winter storm.
Making the most of these presents might be smart for some vacationers, consultants mentioned.
For instance, when you’ve got a nonessential journey booked and also you’re capable of reschedule it for every week or so from now, it might be a good suggestion to go forward and alter your flight, mentioned Nick Ewen, senior editorial director at The Factors Man.
A departures board reveals delayed flights at Orlando Worldwide Airport in Orlando, Florida, Nov. 9, 2025.
Andrew Wevers | Getty Pictures
If an airline cancels your flight and you do not settle for any rebooking choices, then you possibly can get a full refund, Ewen mentioned.
Nonetheless, if you happen to select to cancel the flight your self, you could solely be entitled to a credit score or voucher with the airline, until you paid for a completely refundable flight. You’d additionally lose out on a full refund in case your unique flight is canceled, Ewen mentioned.
“When you’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 mentioned.
Be sure you have your airline’s app downloaded and notifications turned on so you might be knowledgeable about any adjustments to your flight, he mentioned.
For rental automobiles, most corporations assist you to make adjustments or cancellations to your reservation as much as the time of pickup, Ewen mentioned. However that won’t maintain true if you happen to booked by way of a 3rd celebration, resembling a journey web site or your bank card firm, the place you sometimes pay upfront.
Accommodations sometimes provide free cancellations as much as 24 or 48 hours upfront of your keep, but it surely depends upon your reservation. When you booked at a nonrefundable fee, you is probably not 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 mentioned.
“It isn’t a assure, however if you happen to name [and] you clarify the state of affairs, you could be eligible for them to be somewhat bit extra lenient,” he mentioned.
Some bank cards provide journey interruption protection, although, he mentioned. If the lodge will not refund you, you should still be capable of 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 might provide further protections, too.
Put together for an even bigger heating invoice
Many households can count on increased heating prices as temperatures dip and extra energy is required to maintain houses heat.
When chilly climate hits, particularly over a big swath of the nation, there’s typically elevated power demand for house heating, in accordance with the U.S. Power Data Administration. That in flip raises demand for each electrical energy and pure gasoline.
The spot value of pure gasoline has risen sharply over the past week to $8.15 per million British thermal models on Jan. 22 from $5.19 every week earlier. Larger wholesale pure gasoline costs usually contribute to increased wholesale electrical energy costs, in accordance with the EIA.
Customers have already felt the pinch of upper electrical energy prices. A few of that’s attributed to the event of knowledge facilities, which energy synthetic intelligence and place further demand on the electrical grid.
In keeping with the most recent studying of the buyer value index, electrical energy costs have been up 6.7% in December from a 12 months earlier.
In the meantime, for houses that use heating oil, the per-gallon value was $3.66 as of Jan. 19, a drop from $3.93 a 12 months earlier, in accordance with the EIA.
Courtney Fieldman, utility program director for the Southwest Power Effectivity Program, provided the following tips for saving power — and due to this fact cash — through the frigid climate on its method:
- Optimize your thermostat. In the course of the day, when there may be nonetheless warming daylight, setting your own home’s temperature a bit decrease — to 65 to 68 levels Fahrenheit — can preserve you comfy, in addition to trim 10% off heating prices.
- Block drafts. Use towels, blankets and even rolled-up garments to seal gaps below 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 lower nonessentials. Open curtains on sunny sides of your own home through 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 an alternative of house heaters if attainable to keep away from further draw throughout peak hours.
Correction: This story has been up to date to mirror that the Nationwide Climate Service mentioned the storm would have an effect on greater than 170 million Individuals.
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