Homeowners affected by Hurricane Helene’s relentless rainfall are grappling with more than just drying out their properties — they’re facing a daunting financial challenge: paying for the cleanup.
A significant problem is that most Americans, particularly in the storm-ravaged areas, do not have flood insurance. The devastating impact of the hurricane across the Southeast highlights a widespread issue — the vast majority of those affected by flooding are not insured, serving as a stark warning to others, experts say.
In Florida, where the hurricane hit hard, properties along the barrier islands from St. Petersburg to Clearwater were severely damaged or completely wiped out. These ranged from mansions and single-family homes to apartments, restaurants, and shops. In Pinellas and Taylor counties, only 25% and 5% of homeowners, respectively, had insurance that could help with storm-related damages, according to the Insurance Information Institute.
The situation is even worse outside Florida. Only 1% of homeowners affected by flooding from Hurricane Helene had flood insurance. One of the reasons is that typical homeowner’s policies do not cover flood damage — flood insurance must be purchased separately, often from the federal government. While flood insurance is required for government-backed mortgages in high-risk areas, many homeowners drop the coverage once their mortgage is paid off, leaving them vulnerable.
The Federal Emergency Management Agency (FEMA) estimates that only 4% of homeowners nationwide have flood insurance, even though 99% of U.S. counties have experienced flooding since 1996. The Insurance Information Institute offers a slightly higher estimate, suggesting about 6% of U.S. homeowners are covered. Of those, 67% have policies through FEMA’s National Flood Insurance Program, while the remaining 33% are insured by private companies.
Many homeowners base their decision to purchase flood insurance on whether their property is in a designated high-risk area. However, this can lead to a “false sense of security,” according to Georgina Sanchez, a research scholar at North Carolina State University’s Center for Geospatial Analytics. She noted that this mindset discourages people from getting flood coverage, as seen in parts of North Carolina.
Sanchez’s center has partnered with First Street, a nonprofit organization, to develop a flood database that allows homeowners to check current and future flood risks for specific locations. “Many of our homes, businesses, and infrastructure are located within 800 feet — or roughly two city blocks — from the edge of the 100-year floodplain,” Sanchez explained. These areas are deemed at risk of flooding and influence insurance rates.
A recent national study found that 24% of new buildings are being constructed in buffer zones just outside the 100-year flood zones. Sanchez warns that while people enjoy living near water, it’s time to reconsider building in areas prone to disaster. “We have to ask ourselves whether we want to continue putting people in harm’s way,” she said.
The aftermath of Hurricane Helene serves as a stark reminder of the risks posed by inadequate flood insurance coverage and the need for homeowners to prepare for the financial burden that can follow such catastrophic events.
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