Hurricane Helene Insurance Insights and Understanding Risk

Hurricane Helene was a tropical cyclone that formed in the Atlantic Ocean in 2018, causing significant damage and flooding in several countries.

The storm's category 3 status brought strong winds and heavy rainfall, resulting in widespread power outages and property damage.

If you're a homeowner or business owner in a hurricane-prone area, it's essential to understand the risks involved and take steps to mitigate them.

Hurricane insurance policies can provide financial protection in the event of a disaster, but it's crucial to choose the right policy for your needs.

Over $1.4 billion has been paid to policyholders for flood losses stemming from Hurricane Helene recovery.

FEMA estimates that the total flood insurance claims losses from Hurricane Helene could be between $3.5-$7 billion.

The majority of flood insurance claims came from Florida, where policyholders received advance payments of up to $20,000 prior to an insurance adjuster's visit.

More than $520 million of the total paid amount was in the form of advance payments, giving policyholders flexibility to begin working on their recovery.

Check this out: Hurricane Helene Wind Storm Damage Homeowners Insurance Claim

Policyholders in Florida, Georgia, Kentucky, North Carolina, South Carolina, Tennessee, and Virginia had until November 26, 2024, to renew their policies due to the hurricane.

Certain policyholders in Florida have until December 10, 2024, to renew their policies due to an additional extension from Hurricane Milton.

Policyholders in Florida can contact their agent or insurance company to take advantage of the extended renewal period, or call 877-336-2627 for assistance if they don't have their agent's contact information.

For another approach, see: Hurricane Insurance South Carolina

Hurricane Helene's damage and losses are estimated to be between $3 billion and $5 billion, with significant uncertainty due to the wind field.

The losses include damage to buildings, contents, and business interruption for residential, commercial, industrial, and agricultural property.

Flood losses do not include precipitation-induced inland flooding and exclude losses to the National Flood Insurance Program (NFIP).

Damage to offshore property is also not included in the estimate.

The area of landfall around Perry, Florida has some of the least stringent wind resistance design standards, which is likely contributing to losses.

Losses from Helene are predicted to be split roughly evenly between Florida and Georgia.

Standard homeowners' insurance policies typically don't include coverage for flood damage. NFIP policies make up nearly 95% of flood insurance policies in the U.S. because they're always available.

Lenders only require flood insurance for homes with a federally backed mortgage and built within the Special Flood Hazard Area, also known as the 100-year flood zone.

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Rebuilding after a flood is a financially challenging prospect, and recovery funds from insurance can alleviate some of the burden.

Standard homeowners' insurance policies typically don't cover flood damage, so homeowners must buy separate flood insurance, often from the NFIP, which makes up nearly 95% of flood insurance policies in the U.S.

Flood insurance is not a requirement unless a home has a federally backed mortgage and is built within the Special Flood Hazard Area (SFHA), also known as the 100-year flood zone.

Areas outside the SFHA are still at risk of flooding, as seen in western North Carolina and other states during Hurricane Helene, leaving a significant portion of losses uninsured.

Rethink your insurance coverage, especially if you live in a flood-prone area. Fewer than one in 100 homeowners in the worst-flooded counties inland have flood coverage.

Typical policies often don't cover flood damage, and property owners may lack separate flood insurance to keep premiums down. This can leave you with a huge bill if disaster strikes.

Hurricane Helene caused an estimated $15 billion to $26 billion in property damage, but the insured loss is expected to be significantly lower. This highlights the importance of reviewing your coverage limits.

Insurers sometimes try to limit payments to claimants who have coverage, even if other factors like wind were involved. This can lead to protracted legal fights and financial losses.

In Florida, 50,000 claims from Hurricane Ian remain unresolved, with nearly 40 percent of those claims still unpaid. This is a stark reminder of the need to carefully review your insurance coverage.

CoreLogic estimated Hurricane Helene's insured losses to be between $3 billion and $5 billion.

The uncertainty in this estimate is due to the wind field, which is a complex factor in determining damage.

CoreLogic is continuing to monitor the situation to provide more accurate information.

The estimated losses include damage to buildings, contents, and business interruption for residential, commercial, industrial, and agricultural property.

Flood losses do not include precipitation-induced inland flooding and exclude losses to the National Flood Insurance Program (NFIP).

Damage to offshore property is also not included in the estimate.

The area of landfall around Perry, Florida has some of the least stringent wind resistance design standards, which is likely contributing to losses.

This could mean that buildings in this area are more vulnerable to wind damage.

CoreLogic's Hazard HQ Command Central will provide an update on the impacts of Hurricane Helene early in the week of Monday, Sept. 30, 2024.

This update will give a more accurate picture of the damage caused by the hurricane.

The estimated losses from Helene are predicted to be split roughly evenly between Florida and Georgia.

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This suggests that both states will bear the brunt of the damage.

Risk Quantification and Engineering (RQE) and Navigate model users can download pre-landfall hazard-based proxy events from the Client Resource Center (CRC).

This information can be used to better understand the risks associated with hurricanes like Helene.

CoreLogic's updated estimate of total wind and flood damage caused by Hurricane Helene is between $30.5 – $47.5 billion.

This includes both insured and uninsured losses across 16 states.

The insurance industry will provide funds for recovery to home and business owners across the impacted states.

Total insured wind and flood losses are expected to be between $10.5 – $17.5 billion.

Hurricane Helene brought widespread and devastating damage from coastal and inland flooding. The National Flood Insurance Program (NFIP) is expected to provide around $4.5 – $6.5 billion in insurance for homeowners across Florida and the southeastern U.S. for recovery.

Historic tidal levels were recorded in the Tampa Bay and St. Petersburg area by National Oceanic and Atmospheric Administration (NOAA) tidal gauges.

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Hurricane Helene brought catastrophic coastal flooding to Florida, with storm surge levels reaching unprecedented heights. The Tampa-St. Petersburg metro area saw record-breaking surge levels, with inundation of 6 to 7.2 feet above ground level recorded by tidal gauges.

The Big Bend region in Cedar Key was particularly hard hit, with the peak storm surge estimated to have reached more than 15 feet above ground level. This caused extensive damage to unelevated homes and first floors.

Tidal gauges recorded extensive storm surge flooding in the Florida towns of Clearwater Beach, Ft. Myers Beach, and Naples. The historic tidal levels recorded in the Tampa Bay and St. Petersburg area were a testament to the storm's destructive power.

The storm surge damage was apparent during on-site inspections, with photos showing the devastating impact on homes and businesses. The data collected during these inspections will be used to create an updated industry insured loss estimate.

Cedar Key, FL experienced an estimated 9.3 feet of inundation and a peak surge of 10.33 feet, surpassing the town's previous record from an 1896 hurricane. This highlights the need for communities to be prepared for extreme weather events.

Related reading: Does Home Insurance Cover Flooding from Hurricane

Heavy rainfall is a significant hazard to land, with the NHC forecasting upwards of 12 inches of rain in some areas. This can lead to severe flooding and damage to infrastructure.

Tropical storm warnings and hurricane watches have been issued for western Cuba and the tip of the Yucatan Peninsula.

Hurricane Helene is a stark reminder that flood insurance claims can be costly. The National Flood Insurance Program (NFIP) has paid out over $1.4 billion in claims.

FEMA estimates that flood insurance claims losses from Hurricane Helene could reach between $3.5-$7 billion. This is a significant amount, especially considering the majority of claims come from Florida.

Over 56,000 policyholders have filed claims, with more than $520 million of those payments being in the form of advance payments. These payments can provide some breathing room for policyholders to begin their recovery efforts.

Policyholders in Florida, Georgia, Kentucky, North Carolina, South Carolina, Tennessee, and Virginia have until November 26, 2024, to renew their policies.