Widespread Flooding from Hurricane Helene Spotlights Inland Insurance Gaps

Hurricane Helene’s extensive flooding across the southeastern U.S. has intensified focus on the persistent inland flood-protection gap. This gap is especially evident in areas like North Carolina’s Buncombe County, where a mere 1% of residents held federal flood insurance when the storm hit. Helene unleashed over 40 trillion gallons of water, submerging cities like Asheville and leaving widespread devastation in its wake. With limited insurance coverage, many residents are forced to rely on federal assistance to recover—a process hampered by confusion over FEMA aid and other grant resources.

The storm’s impact has underscored the growing frequency of inland flooding and its often-catastrophic effects, highlighting cases like New York City’s floods from Hurricane Ida and deadly flash floods in Kentucky’s Appalachia region. The lack of flood coverage in these areas largely stems from misconceptions about insurance needs and inadequate awareness of the limitations of homeowners’ policies, which generally don’t cover flood damage unless added separately. Although NFIP and some private insurers offer flood policies, uptake remains low, particularly outside coastal areas where many residents do not see flood insurance as essential unless required by a lender.

Industry leaders advocate for a more comprehensive approach to flood resilience. Recent advances, such as parametric insurance and community catastrophe insurance, enable quicker claims payouts, reducing financial strain and simplifying the claims process. Effective solutions will likely depend on a coordinated strategy that includes public education, collaboration with insurers, and investment in resilient infrastructure. Enhanced flood mapping and climate-adaptive zoning and building codes could also reduce the impact of future storms while making flood insurance more accessible.