A massive winter storm is threatening to wreak havoc across the U.S. in the days ahead — and potentially take a financial toll on households in its path.
The National Weather Service said Friday that it expects a “significant, long-duration winter storm” to bring heavy snow, sleet and freezing rain to a broad swath of the U.S., from the southern Rockies to New England, lasting from Friday through Monday.
Snowfall may exceed a foot in certain areas, while “locally catastrophic ice accumulations” and frigid temperatures may trigger long-term power outages, extensive tree damage and widespread travel disruptions, according to the weather service.
The storm may affect more than 170 million Americans, the weather service said early Friday.
Despite the financial costs of such storms, people can take steps to dampen the economic hit, financial experts said.
“A big cost of winter storms is the aftermath of home damage and accidents,” according to Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida. McClanahan is a member of CNBC’s Financial Advisor Council. “People should be preemptive in preparing for this storm. Make sure you cover pipes, bring in plants or cover them, and stock up on supplies so you don’t have to go out.”
Here’s what to know about the potential financial impacts and how to prepare.
Winter storm insurance claims average about $15,000
Winter storms can cause all sorts of damage to a home — from water damage caused by frozen, burst pipes to a roof wrecked by tree limbs that buckle under the weight of ice.
Fortunately, those with homeowners insurance can generally recoup costs for damage from wind, snow, severe cold and freezing rain, said Karen Collins, vice president of property and environmental at the American Property and Casualty Insurance Association, a trade group.
Shoppers carry snow shovels at a hardware store in Philadelphia, Jan. 23, 2026.
Joe Lamberti | Bloomberg | Getty Images
The average insurance loss claimed for water damage and freezing was $15,400 from 2019 to 2023, according to the Insurance Information Institute. The average for wind and hail was about $14,700.
Consumers filed more than 20,000 claims for frozen pipes and winter water damage from January 2024 through June 2025, totaling over $628 million in paid losses, according to an analysis by insurer State Farm of its closed and paid homeowners claims. The average claim payment exceeded $30,000, it said.
Coverage for policyholders will depend on the fine print, however.
For example, most homeowners insurance covers “sudden and accidental” water damage from a burst pipe if the home was properly heated and wasn’t left unoccupied, according to the Massachusetts Division of Insurance.
Experts recommend keeping your home heated to at least 65 degrees Fahrenheit to help keep pipes from freezing.
“The temperature inside the walls where the pipes are located is substantially colder than the walls themselves,” according to the Insurance Information Institute. “A temperature lower than 65 degrees will not keep the inside walls from freezing.”
But keeping your home heated may not always be possible.
During the so-called “Texas Freeze” in 2021, the costliest winter freeze event in U.S. history, a cold spell led to widespread power outages that prevented people from heating their homes, ultimately leading to sizable insured losses from water damage and burst pipes, Collins said.
Homeowners can help by insulating interior and exterior pipes, opening the water faucets in sinks to allow a slow trickle of water and help prevent freezing, and identify the location of the main water shut-off valve in case a pipe bursts and they need to shut the water off, according to the American Property and Casualty Insurance Association.
The downside of stocking up
Across the country, consumers are stockpiling groceries ahead of the extreme cold snap.
While it may make sense to buy certain items as the weather worsens, stockpiling is rarely a good idea, experts said.
In many cases, “widespread stockpiling ahead of a winter storm generally does not make sense,” said Amir Mousavian, professor of supply chain management at the University of New England’s College of Business.
“Households should plan to have enough food and essential items to get through a few days in case travel is temporarily restricted, but there is little benefit to buying far beyond that,” he said.
Although there may be some savings benefits to buying in bulk, “there is also a real risk that households overbuy perishable items, leading to waste and lost money,” Mousavian said.
Often, this type of stockpiling can harm consumers in general, he said.
Empty shelves at a Wegman’s grocery store in Fairfax, Virginia, on Jan. 22, 2026, as a major winter storm is set to hit much of the United States.
Stephanie Dhue | CNBC
Prices go up when supply is limited but demand rises. Food prices — more than many other consumer goods — can be especially volatile due to supply-and-demand factors.
“Sudden surges in demand can strain supply chains,” as seen during the Covid pandemic, Mousavian said. “Modern supply chains are highly efficient, but they are not designed to absorb sharp, artificial spikes in demand, and those spikes can ultimately disadvantage consumers.”
Travel disruptions may come at a cost
Airlines have already canceled thousands of flights as the winter storm looms.
Several major airlines, including Delta and United, have already announced change fee waivers for travelers whose itineraries may be affected by the impending winter storm.
Taking advantage of those offers could be wise for some travelers, experts said.
For example, if you have a nonessential trip booked and you’re able to reschedule it for a week or so from now, it may be a good idea to go ahead and change your flight, said Nick Ewen, senior editorial director at The Points Guy.
A departures board shows delayed flights at Orlando International Airport in Orlando, Florida, Nov. 9, 2025.
Andrew Wevers | Getty Images
If an airline cancels your flight and you don’t accept any rebooking options, then you could get a full refund, Ewen said.
However, if you choose to cancel the flight yourself, you may only be entitled to a credit or voucher with the airline, unless you paid for a fully refundable flight. You’d also lose out on a full refund if your original flight is canceled, Ewen said.
“If you’ve already proactively changed it, you’re now on that new flight and that new itinerary, those new days, and then you’d be subject to whatever policy is in place for that new ticket,” he said.
Make sure you have your airline’s app downloaded and notifications turned on so you are informed about any changes to your flight, he said.
For rental cars, most companies allow you to make changes or cancellations to your reservation up to the time of pickup, Ewen said. But that may not hold true if you booked through a third party, such as a travel website or your credit card company, where you typically pay upfront.
Hotels typically offer free cancellations up to 24 or 48 hours in advance of your stay, but it depends on your reservation. If you booked at a nonrefundable rate, you may not be entitled to a full refund, but it’s worth calling the hotel and explaining the situation, especially if it’s weather-related, Ewen said.
“It’s not a guarantee, but if you call [and] you explain the situation, you may be eligible for them to be a little bit more lenient,” he said.
Some credit cards offer trip interruption coverage, though, he said. If the hotel won’t refund you, you may still be able to file a claim with your credit card company and get your money back as long as you paid with that card.
A separate travel insurance policy may offer additional protections, too.
Prepare for a bigger heating bill
Many households can expect higher heating costs as temperatures dip and more power is needed to keep homes warm.
When cold weather hits, especially over a large swath of the country, there’s often increased energy demand for space heating, according to the U.S. Energy Information Administration. That in turn raises demand for both electricity and natural gas.
The spot price of natural gas has risen sharply over the last week to $8.15 per million British thermal units on Jan. 22 from $5.19 a week earlier. Higher wholesale natural gas prices generally contribute to higher wholesale electricity prices, according to the EIA.
Consumers have already felt the pinch of higher electricity costs. Some of that is attributed to the development of data centers, which power artificial intelligence and place extra demand on the electric grid.
According to the latest reading of the consumer price index, electricity prices were up 6.7% in December from a year earlier.
Meanwhile, for homes that use heating oil, the per-gallon cost was $3.66 as of Jan. 19, a drop from $3.93 a year earlier, according to the EIA.
Courtney Fieldman, utility program director for the Southwest Energy Efficiency Program, offered these tips for saving energy — and therefore money — during the frigid weather on its way:
- Optimize your thermostat. During the day, when there is still warming sunlight, setting your home’s temperature a bit lower — to 65 to 68 degrees Fahrenheit — can keep you comfortable, as well as trim 10% off heating costs.
- Block drafts. Use towels, blankets or even rolled-up clothes to seal gaps under doors and windows, and close off unused rooms by shutting doors and vents to keep heat where you need it. These air leaks around windows, doors and attics can waste up to 30% of heat.
- Use natural heat and cut nonessentials. Open curtains on sunny sides of your house during the day and close them afterward to trap the heat in. Wear warm layers, turn off lights in empty rooms and use blankets instead of space heaters if possible to avoid extra draw during peak hours.
Correction: This story has been updated to reflect that the National Weather Service said the storm would affect more than 170 million Americans.