The US is in the midst of hurricane season as Tropical Storm Francine barrels toward Texas and is expected to make landfall in Louisiana on Wednesday. Forecasters are ready to declare the storm a hurricane later this afternoon. As extreme weather events become more frequent, more than 1 in 10 US homeowners say that they are unprepared to meet related costs, according to Bankrate's 2024 Extreme Weather Survey.

Bankrate analyst Shannon Martin joins Wealth! to break down how extreme weather events are weighing on Americans and how both renters and homeowners can best navigate any associated costs.

"We found that 26% of American homeowners say they feel financially unprepared for the impact that extreme weather can cause. Now, this number, of course, changes depending on the demographic you're looking at based on income or location. But many American homeowners are starting to be more and more concerned about the impact of extreme weather on their finances," Martin tells Yahoo Finance.

She adds that about 39% of homeowners reviewed their home or auto insurance policies within the last five years to ensure they had the right amount of coverage. She explains that this step is crucial as insurance carriers are changing how they cover weather-related losses. She points to wildfires in California as an area where insurers are starting to exclude coverage." Thus, understanding your insurance coverage is key to being financially prepared for such an event.

Martin encourages renters and homeowners to have an emergency savings account in order to afford the insurance deductible and cover any costs associated with evacuation or mitigation supplies. She also stresses the importance of making home insurance "part of your home-buying plan."

In an interview in August, Kyla Scanlon described rising home insurance costs tied to natural disasters and weather phenomena as turning the dream of homeownership into the "American Nightmare."

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This post was written by Melanie Riehl