Helene Brings Flood Insurance Crisis as Majority of Properties Not Covered

As Hurricane Helene barreled across the Eastern Seaboard and inland this week, leaving a trail of devastation in its wake, the storm has exposed a grim reality for thousands of homeowners: most are not covered by flood insurance. This crisis has raised concerns about the nation’s preparedness for future climate-driven disasters.
Helene, a Category 4 hurricane, brought unprecedented rainfall, storm surges and coastal flooding to vulnerable regions along the Atlantic coast. Cities in states from Florida to North Carolina are grappling with floodwaters that have swallowed entire neighborhoods. Thirty inches of rainfall hit North Carolina, the most extensive local flooding in recorded history.
Many residents are facing severe property damage—and they’re finding out too late that they’re not covered by flood insurance.
“As victims of Hurricane Helene slowly recover from the tragedy that caused so much loss of life and property destruction, a lack of flood insurance will make this even more challenging,” the Insurance Information Institute told Newsweek. “Less than 1 percent of the residents in the hardest-hit areas of southern Appalachia have flood coverage.
“Flood insurance remains the biggest insurance gap across the U.S., with only about 6 percent of homeowners having coverage. Yet, 90 percent of natural disasters involve flooding. Most policies are purchased by residents who are required to have flood coverage, not voluntarily.”
“Flooding is not just a coastal issue. All areas of the country are at risk from this hazard. To be fully financially protected from the wrath of Mother Nature, consumers should strongly consider purchasing flood insurance in addition to property insurance. And in most inland areas that are not considered high risk, the cost of coverage is very reasonable—$40 to $50 a month.”
Many homes in high-risk flood zones nationwide do not have flood insurance policies. The numbers are even lower for those outside designated flood zones, where flood insurance is optional. This gap has left tens of thousands of residents, many in areas not historically prone to flooding, unprotected from the financial blow of Helene’s destruction.
Across seven affected states, only 0.8 percent of homes in inland counties affected by the storm had flood insurance, according to a Washington Post analysis of recent data from the National Flood Insurance Program.
The Federal Emergency Management Agency (FEMA) states on its website: “Floods can happen anywhere- just one inch of floodwater can cause up to $25,000 in damage.
“Most homeowners insurance does not cover flood damage. Flood insurance is a separate policy that can cover buildings, the contents in a building, or both, so it is important to protect your most important financial assets — your home, your business, your possessions.”
The National Flood Insurance Program (NFIP), which provides coverage to high-risk homeowners, has been under strain for years, accumulating billions of dollars in debt from past disasters like Hurricanes Katrina, Harvey and Ida. As losses mount from Helene, there are concerns about whether the program can remain solvent.
Experts say the problem is twofold.
First, FEMA’s flood maps, which determine whether a homeowner is required to purchase flood insurance, are outdated in many areas, underestimating the risk to homes outside designated zones. Second, the cost of flood insurance, which can run into thousands of dollars a year, deters many homeowners from purchasing policies, especially in economically disadvantaged communities.
Calls for reform are growing louder. Some lawmakers are pushing for updated flood maps, expanded coverage, and federal assistance to help homeowners afford insurance premiums. Others argue that more must be done to build climate resilience, from upgrading infrastructure to relocating the most vulnerable communities away from flood-prone areas.
Newsweek contacted NFIP via email for comment.
For now, many homeowners face an uncertain future. While federal disaster aid will help with immediate relief, it won’t be enough to cover long-term recovery costs, leaving many facing financial ruin.
As Hurricane Helene’s floodwaters recede, the storm’s actual cost—and the country’s lack of preparedness—is just beginning to emerge.
Newsweek is asking anyone affected by this to contact Aliss Higham by emailing [email protected]