Hurricane Helene has left a trail of destruction in the mountainous regions of North Carolina and Tennessee, with at least 180 confirmed deaths and thousands of homes and buildings damaged or destroyed. AccuWeather estimates the financial cost of the storm’s damages at $225 to $250 billion, a staggering amount that surpasses recent major hurricanes like Sandy and Harvey.
What makes Helene’s impact even more devastating is the lack of insurance coverage for the affected communities. Flood damage, which was a major factor in the storm, is not covered by most residents in the region, leaving them without financial support to rebuild their lives. Unlike previous storms where insurance payouts helped with recovery, Helene’s victims face uncertainty in receiving assistance.
The catastrophe modeling firm Karen Clark & Company estimates that insured damages from Helene will be around $6.4 billion, a relatively small figure given the extent of the destruction. Despite rising insurance premiums and market instability post-disasters, states like North Carolina and Tennessee are unlikely to face a collapse in insurance availability.
While FEMA’s National Flood Insurance Program is meant to provide coverage, its limitations have left many homeowners vulnerable to flooding. The program’s debt and low participation rates highlight the challenges in addressing flood-related losses. Swiss Re, a global reinsurance company, confirms that most affected individuals won’t receive insurance payouts for damage incurred during Helene.
Without insurance coverage, homeowners will have to rely on federal aid programs like FEMA and the Small Business Administration for assistance. However, the aid may not be sufficient to cover the extensive costs of reconstruction, especially for low-income households.
Despite the significant uninsured losses and media attention surrounding Helene, experts like Carolyn Kousky doubt that the storm will lead to meaningful changes in disaster policy. The challenges of securing adequate insurance and aid for disaster victims persist, highlighting the ongoing need for comprehensive disaster preparedness and response.
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