Helene Hits Florida as Category 4 Hurricane, Unveils Critical Flood Insurance Gap

Hurricane Helene made landfall in Florida as a Category 4 storm, bringing massive flooding from Florida to North Carolina, and affecting regions as far as Appalachia. With 140-mile-per-hour winds and record rainfall, millions have been left without power, while rivers across the Southeast have surpassed flood stage. Yet, Helene also underscored the severe lack of flood insurance in affected areas, where only 4% of Americans carry flood policies.

Despite rising flood risks, many homeowners remain uninsured, especially in inland counties, due to misunderstandings about flood coverage, FEMA’s incomplete mapping of floodplains, and high insurance costs. Federal flood maps often don’t account for flooding caused by heavy rainfall, leaving many communities vulnerable. The situation is compounded by escalating insurance rates, which have forced some homeowners to drop their flood coverage. The National Flood Insurance Program’s revised pricing structure has further increased costs, leading to widespread underinsurance just as extreme weather events are becoming more common.

This shortfall in coverage is dangerous, given that flooding is the most expensive natural peril in the U.S., responsible for two-thirds of natural disaster losses. The aftermath of Helene illustrates the significant financial impact that uninsured homeowners may face, as federal aid remains limited and FEMA itself grapples with funding shortages.