Flood Insurance Crisis: Most U.S. Homeowners Hit by Hurricane Helene Lack Coverage

Understanding the Flood Insurance Gap

Homeowners whose properties were swamped by Hurricane Helene's torrential rainfall face a serious problem beyond drying out: how to pay for the cleanup. That's because most Americans, including in the communities ravaged by the massive storm, lack flood insurance.

The Devastation of Hurricane Helene

As the aftermath of the hurricane's ruinous and deadly route across the Southeast illustrates, the alarming lack of flood insurance coverage among an overwhelming majority of people impacted serves as a cautionary tale for the rest of us, experts say.

• Along Florida's barrier islands from St. Petersburg to Clearwater, various properties were destroyed or heavily damaged.
• In hard-hit counties, storm coverage varied considerably, with Pinellas County having 25% coverage and Taylor County a mere 5%.

The National Perspective

Outside of the Sunshine State, the picture is even more dire, with just 1% of homeowners who sustained flooding from Helene holding flood insurance, according to the Insurance Information Institute.

Why Homeowners Lack Flood Insurance

Flooding is not covered by a homeowner's policy and must be purchased separately, often from the federal government. Many banks mandate flood insurance in high-risk zones, but this doesn’t prevent some homeowners from dropping their coverage once their mortgage is paid off.

Statistics and Risks

FEMA estimates that only 4% of homeowners across the country have flood insurance, despite the fact that 99% of U.S. counties have been impacted by flooding since 1996. Moreover, the Insurance Information Institute states that about 6% of U.S. homeowners possess flood insurance, with most covered through FEMA's National Flood Insurance Program.