Who’s Paying for Hurricane Helene?

A Massive Amount of Damage

Hurricane Helene recently swept through the Southeast, causing widespread damage across Florida, Georgia, the Carolinas, Virginia, and Tennessee. Now, residents and government officials are grappling with who will foot the bill.

The storm’s toll could reach $34 billion in property damages and lost productivity, according to an early estimate by Moody’s Analytics reported on CNBC. With a shortage of private insurance in the affected regions, much of the repair bill will likely rest on Congress’s shoulders.

The Rarity of Flood Insurance

The bulk of Helene’s destruction was caused by storm surges and flooding, per CNBC. This is particularly problematic given the fact that flood damage typically requires its own insurance coverage, which only about 6% of U.S. homeowners currently have, according to an Insurance Information Institute spokesperson interviewed by CNBC.

FEMA just received $20 billion in replenishment funds to aid in disaster relief, but some experts argue it’s not enough. Helene’s aftermath may require even more assistance, yet further recovery efforts could face delays. In the meantime, Congress is on recess until November 12, with some lawmakers pushing to end recess early.

A Gap in the Insurance Market

Hurricane Helene highlights a gap in the insurance market: The bulk of natural disasters involve flooding, yet few homeowners are insured against it. It’s a disparity that could lead to innovative reform in the insurance industry over the coming years.

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