Hurricane Helene, which struck the Southeast in September 2024, has been identified as the deadliest mainland U.S. storm since Hurricane Katrina. The storm resulted in economic losses estimated between $80-110 billion, with North Carolina bearing approximately $60 billion of that total.
The Federal Emergency Management Agency (FEMA) faced criticism after the hurricane. A significant issue was that only a small portion of the requested disaster assistance reached affected communities. Additionally, FEMA dismissed an employee accused of instructing workers to overlook homes belonging to Trump supporters during relief efforts. Florida Governor Ron DeSantis announced that the Florida Division of Emergency Management would investigate these allegations, while U.S. Senator Josh Hawley called for potential prosecution if necessary.
Most damage from Hurricane Helene was due to flooding and was either uninsured or covered by FEMA through the National Flood Insurance Program (NFIP). NFIP policies are managed by private insurance carriers under a "Write Your Own" program but follow federal guidelines set by FEMA. Since 2017, NFIP has operated under short-term extensions pending reform and reauthorization by Congress.
Private insured losses from Helene were estimated at $6.4 billion, as flood damage is not typically covered under standard homeowners' policies. In some heavily impacted areas like Buncombe County, North Carolina, less than 1% of homes had flood insurance before the storm.
FEMA requires homeowners to file claims with their insurers before seeking disaster relief and provide proof if their insurance does not cover their losses. This process ensures FEMA does not duplicate payments for insured damages.
In cases where both flood and wind damage occurred, multiple adjusters might be involved in assessing different types of losses even if a single insurer provides both flood and standard homeowners' coverage. A homeowner interviewed by President Trump reported having multiple adjusters assess his property and expressed dissatisfaction with FEMA's assistance.
Private insurers are subject to state regulation across all states, with over 11,600 regulatory staff conducting market examinations and tracking consumer complaints and claims activity.
The American Property Casualty Insurance Association (APCIA), representing home, auto, and business insurers nationwide, continues to advocate for competitive private insurance markets for consumers' benefit.
Information from this article can be found here.