Press Article: Uncertainty Looms Over Flood Insurance in Wake of Tropical Storm Helene
In the aftermath of Tropical Storm Helene, which has been deemed the costliest disaster in North Carolina’s history, fewer than 1% of affected residents in Western North Carolina had flood insurance. Experts estimate uninsured residential losses to be around $9.5 billion, leaving many residents and business owners without support for property and business losses.
Donald Hornstein, an environmental law professor at UNC Chapel Hill, noted that many individuals did not foresee such severe flooding in mountainous areas and, therefore, did not secure flood insurance. The storm’s impact has underscored a longstanding issue: only 6% of Americans hold flood insurance, and this figure is significantly lower in areas like those impacted by Helene.
Most flood insurance is provided by the National Flood Insurance Program (NFIP), a federal entity under FEMA. However, private insurers are largely absent from the market due to the high costs associated with flood damage and increasingly severe rain events. In Western North Carolina, only about 6,500 NFIP policies were active, with payouts from Helene totaling $1.8 million for nearly 43,700 reported losses.
Many residents mistakenly believed that homeowners’ insurance would cover flood-related damages. Business owner Ginger Frank highlighted the challenges with ambiguous insurance language that led to unexpected claim denials.
Future flood insurance policies may see an uptick, especially as residents confront heightened awareness of flood risks. However, the NFIP faces financial instability and concerns over whether it can adapt to the growing frequency of catastrophic flooding. Reform is essential, as current policies may not adequately protect communities from severe weather events.
As the next hurricane season approaches, experts advise homeowners to closely evaluate their insurance coverage and adapt to an uncertain landscape. Mark Friedlander from the Insurance Information Institute cautions against assuming FEMA support, emphasizing the unpredictable future of federal flood assistance.
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