As residents in Florida brace for the impact of the impending Category 5 Hurricane Milton, concerns over inadequate insurance protections are mounting. The memory of Hurricane Helene, a Category 4 storm that ravaged western North Carolina and other southeastern states on September 26, remains fresh for many still rebuilding their lives.
The aftermath of Helene has been particularly challenging, with the majority of affected property owners lacking coverage from private insurers or the National Flood Insurance Program (NFIP). Damage estimates from Helene amount to a staggering $30.5 billion to $47.5 billion, with uninsured flood losses ranging from $20 billion to $30 billion, according to data analytics firm CoreLogic.
Standard homeowners’ insurance policies typically exclude flood damage, requiring homeowners to obtain separate policies or enroll in the NFIP. Alarmingly, as of May 2023, 92 percent of U.S. properties at risk of flooding were not covered by the NFIP, based on a Congressional Budget Office study.
The insurance gap is expected to widen as climate change intensifies the frequency and severity of natural disasters. In 2023 alone, multiple weather and climate records were shattered, including the warmest July on record in the 174-year history of the National Oceanic and Atmospheric Administration. Since 1980, weather and climate-related disasters have resulted in an estimated $2.6 trillion in losses.
The situation is exacerbated by insurance companies raising premiums in response to the heightened demand for coverage against natural disasters. \
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Multiple hurricanes raise grave concerns about U.S. insurance gap
cgtn.com
