Why You Should Open a HELOC Before Hurricane Season

Preparing for hurricane season often means stocking up on supplies, reviewing evacuation plans and protecting your home. With Atlantic hurricane season running from June 1 through November 30, it's also important to prepare for the financial impact of a storm.

If you're a homeowner, opening a Home Equity Line of Credit (HELOC) before hurricane season can provide access to funds for unexpected expenses if disaster strikes. Having a line of credit in place before a storm can help you respond quickly while waiting for insurance claims to be processed.

Atlantic hurricane season runs from June 1 through November 30, making it important to prepare before severe weather is in the forecast.

Why should you get a HELOC before hurricane season?

The best time to prepare financially for a storm is before one is in the forecast.

After a hurricane, tornado or other natural disaster, homeowners often face immediate expenses long before insurance claims are settled. You may need to pay your insurance deductible, make emergency repairs, secure temporary housing, remove debris or replace damaged belongings.

While homeowners insurance may help cover many of these costs, claim payments can take weeks or even months to process. During that time, expenses don't wait.

Having a HELOC in place before hurricane season gives you access to available funds when you need them most, helping to bridge the gap while your insurance claim is being reviewed.

How can a HELOC help after a hurricane?

A HELOC is a revolving line of credit that allows you to borrow only what you need, when you need it, up to your approved credit limit.

That flexibility can help you manage the costs that often arise during recovery, including:

• Paying your homeowners insurance deductible
• Making emergency repairs to prevent additional damage
• Covering temporary housing if your home is uninhabitable
• Hiring contractors before insurance proceeds arrive
• Replacing damaged belongings or other essential household items

If severe weather never impacts your home, your HELOC simply remains available for future needs, such as home improvements, education expenses or other planned projects. If you're planning a major renovation, learn about five financing options for expensive home repairs.

Make a HELOC Part of Your Hurricane Preparedness Plan

Preparing for hurricane season isn't just about protecting your home. It's also about preparing your finances. In addition to reviewing your emergency plans and supplies, our article on 8 smart steps to prepare for hurricane season can help you get your household ready before severe weather arrives.

A well-rounded preparedness plan may include:

• Reviewing your homeowners insurance coverage
• Understanding your insurance deductible
• Maintaining an emergency savings fund
• Establishing a HELOC before storm season begins

Having multiple financial resources in place can help reduce stress and allow you to focus on your family and your recovery if the unexpected happens.

Is a HELOC the Right Emergency Funding Option?

Every homeowner's financial situation is different. An emergency savings account is often the first resource for unexpected expenses.

For larger costs that may exceed available savings, a HELOC can provide additional financial flexibility while allowing you to borrow only what you need. If you'd like to learn more about how homeowners use their equity during financially challenging times, explore our article on using home equity to manage financial challenges.

What are the benefits of opening a HELOC before you need one?

Opening a HELOC before hurricane season means you'll already have access to funds if severe weather impacts your home.

Depending on the product you choose, a Hancock Whitney HELOC also offers benefits such as:

• Borrow only what you need, when you need it
• Bank pays closing costs in many situations (subject to limitations)
• Flexible payment options
• Convenient access through Online & Mobile Banking

Like any financial product, a HELOC is most valuable when it's established before you need it.

Frequently Asked Questions

Can I use a HELOC for storm-related expenses?

A HELOC can be used for a variety of eligible expenses. A HELOC may be used to help cover insurance deductibles, emergency repairs, temporary housing and other unexpected expenses following severe weather.

When should I apply for a HELOC?

If you're considering a HELOC as part of your emergency preparedness plan, applying before hurricane season can help ensure you have access to funds if unexpected expenses arise.

Do I have to use the money if I open a HELOC?

No. A HELOC is a revolving line of credit. If you don't need it, you don't have to borrow from it. If you do need funds, you can draw from your available credit up to your approved credit limit.

Prepare Today for Tomorrow's Uncertainties

No one can predict when severe weather will strike or how long recovery may take. But you can prepare financially before hurricane season reaches its peak.

Opening a Home Equity Line of Credit before your home is affected by a storm can provide added peace of mind and financial flexibility when you need it most. Instead of worrying about how you'll cover unexpected expenses while waiting on insurance proceeds, you can focus on protecting your family and beginning the recovery process.

Learn more about Hancock Whitney's Home Equity Line of Credit and apply today.