As Hurricane Milton remains in the Gulf of MexicoDamage from Tropical Cyclone Helene is being estimated – and the news is sobering for homeowners.
Helen caused $30.5 billion to $47.5 billion in property damage across 16 states after striking the Florida Panhandle late last month and carving a path of destruction across the Southeast, according to new estimates from real estate analytics firm CoreLogic.
However, CoreLogic estimates that only $10.5 billion to $17.5 billion of wind and flood damage will be covered by insurance.
Insured losses include private policies as well as damages covered by the National Flood Insurance Program (NFIP), the federal program that accounts for 95% of flood insurance policies in the US.
In addition to the storm surge that Helene brought to a large portion of Florida’s Gulf Coast, the storm also brought historic rainfall to several states.
In Asheville, NC, and surrounding communities, the French Broad River flooded to a height of more than 24 feet, breaking the previous record set more than 100 years ago. US Geological Survey,
“We’re seeing essentially the entire city flooded down to the first story,” says John Schneier, director of disaster response for CoreLogic. “So we’re talking about a total loss on properties in entire towns.”
Most of Helen’s property damage is likely not insured
Flood damage is typically not covered by homeowners insurance, and mortgage lenders do not require it unless the home is located in a designated flood hazard area. Schneier says, as a result, Helene’s torrential rains won’t cover most inland flooding.
In Buncombe County, where Asheville is located, less than 1% of homes are covered for flood damage under the NFIP, according to federal data. In the 100 counties of Florida, Georgia, the Carolinas and Virginia that were hardest hit by Helene, only 2% of homes are protected by flood insurance, and nbc news The analysis found.
CoreLogic estimates that the NFIP will pay $4.5 billion to $6.5 billion in flood damage claims related to Helene. But most of the losses covered will be concentrated in coastal areas affected by storm surge, Schneier says, where mortgage lenders typically require flood protection.
CoreLogic estimates that private insurers will pay an additional $4.5 billion to $6.5 billion for losses covered by wind damage, with the majority of those losses occurring in Florida and Georgia.
Many homeowners may underestimate their risk of flood damage if they are not in a special flood hazard area, also known as a 100-year flood zone, where mortgage lenders require flood insurance. Schneier says.
“Given things like a changing climate, rainfall will be more intense and storms will be wetter,” he says. “The risk of flooding to your home may be higher than you expect. “So being informed about risk is an important way to prevent future losses, whether through mitigation or insurance.”
Realtor.com includes flood risk ratings on listings, and our dynamic map layers include one flood risk exposure It shows the 1% risk flood water level for an area in one year, 15 years and 30 years.
Flood risk increases again in Florida due to new storm
Meanwhile, Hurricane Milton in the Gulf of Mexico was upgraded to a Category 4 hurricane on Monday. Milton is expected to reach Florida’s Gulf Coast by midweek, increasing the risk of flooding in the state again.
The National Weather Service said in an advisory that winds peaked at 155 mph Monday morning in Milton and were expected to reach Category 5 later in the day.
The storm is expected to make landfall near Tampa Bay on Wednesday, causing storm surges of up to 12 feet. Rainfall amounts of 5 to 10 inches are expected across the Florida Peninsula, with local totals up to 15 inches.
“This rainfall brings the risk of fairly sudden, urban and regional flooding, as well as the potential for moderate to major river flooding,” the NWS said in a flash bulletin.
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