Many homeowners in the Southeast, particularly in North Carolina, do not have flood insurance, leaving them vulnerable to devastating losses when disasters like Hurricane Helene strike. Only about 2% of residences in the hardest-hit counties by power outages from the hurricane were protected by flood insurance. Inland counties have even lower rates of flood insurance coverage, with less than 1% in North Carolina and 0.3% in South Carolina. The Federal Emergency Management Agency’s National Flood Insurance Program is the leading provider of flood insurance in the country, but many homeowners do not realize that their homeowners insurance policies do not cover floods.
Trevor Burgess, CEO of Neptune Flood, emphasizes the economic hardship faced by those without flood insurance, as they are left with complete losses in the event of flooding. FEMA does provide some assistance to those without flood insurance, but the payments are a fraction of what is typically covered by federal flood insurance claims. Burgess also points out that misconceptions about flood risk, confusion about insurance coverage, and the cost of flood insurance are the main reasons why many homeowners do not have flood insurance.
Only about 5% of residences in Southeastern states have flood insurance, mainly along the coast. Lack of flood insurance lays bare the disparity between the wealthy and the economically vulnerable, as those without insurance face significant challenges in recovering from flood-related losses. Ultimately, the importance of having flood insurance is highlighted as a crucial measure to protect homeowners from the financial devastation of floods.
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