FEMA Raises NFIP’s Estimated Losses from Hurricane Helene to $7.4 Billion

The Federal Emergency Management Agency (FEMA) has increased its estimated loss range for the National Flood Insurance Program (NFIP) due to Hurricane Helene, now projecting between $6.4 billion and $7.4 billion in total claims payouts. As of early February 2025, more than 57,400 flood insurance claims have been filed, amounting to over $4.5 billion in paid losses. This is a significant increase from November 2024, when FEMA estimated potential losses between $3.5 billion and $7 billion.

Hurricane Milton has also contributed to NFIP’s financial strain, with projected losses ranging from $1.2 billion to $2.9 billion and more than 21,100 claims filed. To manage these mounting claims, FEMA has borrowed $2 billion from the U.S. Treasury, bringing NFIP’s total debt to $22.525 billion. FEMA emphasized that while NFIP’s premiums typically cover claims in normal years, the back-to-back catastrophic flooding events in 2024 have necessitated additional financial support.

With NFIP providing $1.3 trillion in coverage to nearly 4.7 million policyholders, the program remains committed to fulfilling all eligible claims. FEMA is strategically managing its borrowing authority in short-term increments to maintain financial stability while continuing to support policyholders affected by recent severe flooding events.