Imagine waking up to the sound of warning sirens, or watching wildfires approach your neighborhood on the news. Would you know what to do next?

Climate-related disasters across the United States are becoming more frequent and intense. In fact, the number of U.S. weather disasters costing $1 billion jumped from an average of 6.7 per year during 2000–2009 to 28 in 2023 alone.1 Statistics like this should serve as a wake-up call for all of us. From storm-battered coasts to the fire-prone West, Americans everywhere are facing new challenges due to our changing climate.

The New Normal

The change has become too obvious to ignore or avoid. Hurricanes and tropical storms are getting more fierce along the coasts, while inland areas deal with more flooding than ever. The West continues to battle increasingly severe wildfires, and extreme heat waves are becoming more common nationwide. Even “typical” winter storms are more unpredictable and intense in many places. While the specific climate risks vary depending on where you live, these threats mean you and your loved ones need to be better prepared than before.

Protecting Your Finances

While physical safety comes first, don’t forget about financial preparedness. Build an emergency fund covering three to six months of expenses. Review your insurance coverage annually, paying special attention to flood and earthquake policies, which are often not included in standard homeowners insurance. Keep some cash on hand for emergencies when ATMs may be down. Use online banking and mobile apps to manage your finances when traditional banking services are unavailable. Digitize important financial documents and store them securely in the cloud for easy access during emergencies.