With Hurricane Milton posezing a threat to the United States, Helene might result in property owners incurring over $47 billion in damages.
Hurricane Helene, classified as a powerful Category 4 storm, struck Florida, North Carolina, South Carolina, and Georgia on September 26, leading to extensive and devastating flooding, as reported by data analysis firm CoreLogic. Despite this, numerous residents in Helene's path weren't protected by flood insurance. CoreLogic estimates that Helene resulted in uninsured flood damage worth between $20 billion and $30 billion.
This figure surpasses CoreLogic's estimation of between $10.5 billion and $17.5 billion worth of uninsured wind and flood damage.
CoreLogic stated in a recent update that a notable portion of the damage from this hurricane is likely to remain uninsured, placing the responsibility of repairs squarely on the shoulders of the individual property owners.
In total, CoreLogic calculates that Hurricane Helene caused between $30.5 billion and $47.5 billion in combined wind and flood damage across 16 states. No further updates are planned, unless there are significant developments.
Meanwhile, Hurricane Milton is heading towards Florida, rapidly escalating from a tropical storm to a highly dangerous Category 4 hurricane within a mere 20 hours. Milton poses a threat of additional damage to the region, and underscores the lack of flood insurance in areas that continually face flood threats.
Helene's heavy rainfall brought about catastrophic devastation, leaving whole communities in western North Carolina in ruins. The death toll from Helene has reached at least 232 individuals across six states, positioning it as the second-deadliest hurricane to impact the US mainland in the previous 50 years.
In Florida, Hurricane Helene resulted in unprecedented tidal levels in the Tampa Bay and St. Petersburg regions, both popular for hotels and condos.
Even though storms are gaining intensity due to warmer-than-average temperatures in the Gulf of Mexico, standard homeowners' insurance policies do not typically cover flooding.
To obtain flood insurance, homeowners typically must purchase the coverage separately, usually from the National Flood Insurance Program, managed by the Federal Emergency Management Agency (FEMA).
Homeowners are not obligated to secure flood insurance unless they have a federally-backed mortgage and their property falls within a 100-year flood zone, known as the Special Flood Hazard Area (SFHA).
"Lenders do not require flood insurance for properties without a mortgage or those outside the SFHA," CoreLogic explained.
Most of the damage from Hurricane Helene originated from flooding, with wind causing $4.5 billion to $6.5 billion in losses, as per CoreLogic. The majority of Florida's wind losses were in Perry, a small town with a population of only 7,000.
Businesses in affected areas may struggle to recover from the uninsured flood damage, potentially leading to economic losses. The lack of flood insurance coverage is a concern for many property owners, highlighting the importance of educating residents about the need for separate flood insurance policies.
