Hurricane Helene Causes Up to $34 Billion in Total Economic Impact, Moody’s Reports

Hurricane Helene, a Category 4 storm, hit Florida’s Big Bend area on September 26, 2024, with winds of 140 mph, causing extensive property damage and disruptions. According to Moody’s, the total economic impact is expected to range between $20 billion and $34 billion, with property damages alone estimated at $15 billion to $26 billion. Although the region impacted by Helene is less populated and contains more affordable housing than other storm-prone areas, the storm’s large size led to damage and disruptions extending over four states, including major population centers.

The economic losses are likely to stem largely from disruptions such as power outages and business closures, which could reduce economic output by $5 billion to $8 billion across the third and fourth quarters of the year. CoreLogic’s initial estimates place wind and storm surge insurance losses between $3 billion and $5 billion, while reinsurance broker Gallagher Re anticipates private insurance losses in the mid-to-high single-digit billions.

Despite the significant damage, many of the largest insurers, including Citizens Property Insurance Corporation and national players like State Farm and Allstate, are expected to withstand the losses due to geographic diversification and reinsurance protections. However, Florida-only insurers, who account for half of the state’s homeowners insurance market, may face heightened vulnerability.