{"id":22536,"date":"2024-09-29T20:23:23","date_gmt":"2024-09-29T20:23:23","guid":{"rendered":"https:\/\/www.insurancejournal.com\/?p=794789"},"modified":"2024-09-29T20:23:23","modified_gmt":"2024-09-29T20:23:23","slug":"early-lessons-from-helene-show-catastrophes-are-here-to-stay-flood-insurance-vital","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/09\/29\/early-lessons-from-helene-show-catastrophes-are-here-to-stay-flood-insurance-vital\/","title":{"rendered":"Early Lessons From Helene Show Catastrophes Are Here to Stay, Flood Insurance Vital"},"content":{"rendered":"<ul class=\"nav nav-tabs tabs tabs-entry\">\n<li class=\"active\"><a href=\"https:\/\/www.insurancejournal.com\/news\/southeast\/2024\/09\/29\/794789.htm\">Article<\/a><\/li>\n<li><a href=\"https:\/\/www.insurancejournal.com\/news\/southeast\/2024\/09\/29\/794789.htm?comments\" rel=\"nofollow\">0 Comments<\/a><\/li>\n<\/ul>\n<div class=\"article-content clearfix\">\n<p>Hurricane Helene made landfall late Thursday, Sept. 26, in the Florida Big Bend, a sparsely-populated 150-mile coastal stretch from Apalachee Bay, south of Tallahassee, to Waccasassa Bay in the south. All told, the population of the area amounts to less than one percent of Florida\u2019s population. But instead of attenuating after landfall, like most storms do, Helene barreled 100 miles across the panhandle and into Georgia and North Carolina, pelting the more populous Valdosta, Atlanta and Asheville.<\/p>\n<p>Across the destruction path, <a href=\"https:\/\/apnews.com\/article\/hurricane-helene-florida-georgia-north-carolina-south-carolina-92d5caaafe40644e1db687cf6431395f#\">reports<\/a> are that millions are without power and 64 people are dead. In North and South Carolina, more than <a href=\"https:\/\/outagemap.duke-energy.com\/#\/current-outages\/ncsc\">a million<\/a> Duke Energy customers were without power <a href=\"https:\/\/www.newsobserver.com\/news\/weather-news\/article293101829.html\">Friday<\/a> afternoon. Eastern Tennessee and Western North Carolina in particular are <a href=\"https:\/\/www.nytimes.com\/2024\/09\/28\/us\/north-carolina-helene-asheville-shelby.html\">devastated<\/a>. Governor Bill Lee in Tennessee, who <a href=\"https:\/\/www.knoxnews.com\/story\/news\/politics\/2024\/09\/28\/tennessee-gov-bill-lee-officials-survey-helene-flood-damage\/75432096007\/\">surveyed initial damage<\/a> with state and federal officials, said damage assessments will take time.<\/p>\n<div class=\"bzn bzn-sized bzn-intext\">\n<ins data-revive-zoneid=\"79\" data-revive-topics=\"catastrophe,flood\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>In Florida, if Helene bore to the west before making landfall, the destruction to Tallahassee (the population, including the metropolitan area, is approximately 400,000) would have been in the <a href=\"https:\/\/www.insurancebusinessmag.com\/us\/news\/catastrophe\/insurers-brace-for-up-to-15-billion-in-losses-if-helene-hits-tallahassee-507530.aspx\">tens of billions of dollars<\/a>. If Helene had turned east prior to landfall, it could have caused incalculable damage to Tampa, St. Petersburg and Sarasota. After all, the <a href=\"https:\/\/www.weather.gov\/mhx\/HurricaneIan093022\">most destructive<\/a> hurricane to touch down on Florida\u2019s Gulf side struck the middle-sized Fort Myers (population 96,000).<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-768225\" src=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2024\/04\/Guest-commentary-Jerry-Theodorou-300x99.png\" alt width=\"334\" height=\"110\" srcset=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2024\/04\/Guest-commentary-Jerry-Theodorou-300x99.png 300w, https:\/\/www.insurancejournal.com\/app\/uploads\/2024\/04\/Guest-commentary-Jerry-Theodorou-580x191.png 580w, https:\/\/www.insurancejournal.com\/app\/uploads\/2024\/04\/Guest-commentary-Jerry-Theodorou-768x252.png 768w, https:\/\/www.insurancejournal.com\/app\/uploads\/2024\/04\/Guest-commentary-Jerry-Theodorou.png 840w\" sizes=\"(max-width: 334px) 100vw, 334px\">We don\u2019t yet know the extent of the damage in Georgia and the Carolinas. But early pictures and videos show \u201c<a href=\"https:\/\/www.washingtonpost.com\/weather\/2024\/09\/28\/helene-flooding-carolinas-tennessee-destruction\/\">Biblical<\/a>\u201d destruction, according to reports. Some universities in western North Carolina <a href=\"https:\/\/www.newsobserver.com\/news\/state\/north-carolina\/article293188409.html\">will close for at least a week<\/a>, according to local news, and as of Sunday morning, \u201call roads in Western N.C. should be considered closed\u201d according to the <a href=\"https:\/\/www.ncdot.gov\/Pages\/default.aspx\">North Carolina Department of Transportation<\/a>.<\/p>\n<p>Reinsurance brokers Gallagher Re and Howden Re have <a href=\"https:\/\/www.artemis.bm\/news\/hurricane-helene-industry-loss-seen-3bn-to-6bn-if-tampa-avoided-gallagher-re\/\">suggested<\/a> that the worst case loss would be $10 billion or $15 billion, respectively. Gallagher has suggested that insured losses to the private market could be in the $3 billion to $6 billion range. BMS Re <a href=\"https:\/\/www.artemis.bm\/news\/hurricane-helene-landfall-at-cat-4-140mph-winds-tampa-bay-sees-historic-surge-flooding\/\">forecasts<\/a> $4 billion to $5.5 billion. A mitigating factor could be the upgrades to building <a href=\"https:\/\/www.npr.org\/2018\/10\/17\/658156093\/after-michael-a-call-for-stricter-building-codes-in-floridas-panhandle\">standards<\/a> after Hurricane Michael in 2018 likely making some structures more capable of withstanding the powerful winds, which were <a href=\"https:\/\/www.tallahassee.com\/story\/news\/hurricane\/2024\/09\/27\/hurricane-helene-damage-updates-friday-flood-wind-impact-tropical-storm\/75399761007\/\">up to 140 miles per hour<\/a> when Helene, the Category 4 hurricane, made landfall<strong>.<\/strong> In Georgia, however, where Helene traveled north after passing through the panhandle, building codes are less stringent.<\/p>\n<p>Another mitigating factor to keep insured losses at the lower end is that much of the damage was caused by flooding\u2013rather than wind. Helene brought in its wake <a href=\"https:\/\/apnews.com\/article\/hurricane-helene-florida-georgia-storm-surge-48bc645cdc70bf40c0b62457e87dd1de\">torrential rain and storm surge<\/a> in many places, including North Carolina and Georgia of 10 feet. Damage from flooding and storm surge is not <a href=\"https:\/\/www.rstreet.org\/commentary\/protecting-your-property-from-flooding-what-you-need-to-know\/\">covered<\/a> by conventional homeowners\u2019 insurance policies, such as the <a href=\"https:\/\/www.businessinsider.com\/personal-finance\/homeowners-insurance\/ho-3-insurance\">HO-3<\/a>. Damage from wind is covered, as is damage from wind-driven rain, but flooding and storm surge, which are likely responsible for most of the damage, are excluded.<\/p>\n<p>One private flood insurance provider in North Carolina <a href=\"https:\/\/abc11.com\/post\/flooded-house-nc-homeowners-insurance-may-not-cover-flood-damage\/15189967\/\">said their data showed under 3 percent of properties<\/a> in the state have flood insurance. The lack of flood insurance could be, in part, because <a href=\"https:\/\/www.scientificamerican.com\/article\/studies-sound-alarm-on-badly-out-of-date-fema-flood-maps\/\">FEMA\u2019s maps<\/a> were out of date for many years (they were just <a href=\"https:\/\/www.insurancejournal.com\/news\/southeast\/2024\/06\/24\/780732.htm\">updated<\/a> in July 2024).<\/p>\n<p>Helene underscores the importance of having flood insurance, and of flood insurance being priced correctly. The National Flood <a href=\"https:\/\/www.cassidy.senate.gov\/newsroom\/press-releases\/cassidy-votes-to-keep-government-open-extend-flood-insurance-program-fund-disaster-relief\/\">Insurance<\/a> Program (NFIP) is in need of <a href=\"https:\/\/www.rstreet.org\/commentary\/protecting-your-property-from-flooding-what-you-need-to-know\/\">reauthorization<\/a> by Congress. Senator Bill Cassidy (R-LA) said on September 25, the day before Helene, that \u201cwe must keep the National Flood insurance Program going [and] put more money into FEMA\u2019s disaster relief fund.\u201d Sources reveal that Cassidy\u2019s bill will include <a href=\"https:\/\/www.fox8live.com\/2024\/09\/25\/sen-cassidy-says-louisiana-getting-206-million-federal-flood-mitigation-projects\/\">requirements<\/a> for mitigation measures, grant programs, and means-tested insurance for those below an income threshold.<\/p>\n<div class=\"bzn bzn-sized bzn-intext-2\">\n<ins data-revive-zoneid=\"162\" data-revive-topics=\"catastrophe,flood\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>The unfortunate truth is that Americans are increasingly unable to avoid these natural <a href=\"https:\/\/www.rstreet.org\/research\/the-truth-about-catastrophes\/\">catastrophes<\/a>. Both the frequency and severity of these weather events have increased. Americans need flood insurance and they need their homes to be more resilient.<\/p>\n<p><em>The R Street Blog on Insurance Journal presents the work and viewpoints of the free market think tank R Street Institute in Washington, D.C. Jerry Theodorou is the director of the Finance, Insurance and Trade Policy Program.<\/em><\/p>\n<p class=\"tagtag\"> <span class=\"tagtag\">Topics<\/span> <a href=\"https:\/\/www.insurancejournal.com\/catastrophe\/\" class=\"btn btn-sm btn-primary tagtag\">Catastrophe<\/a> <a href=\"https:\/\/www.insurancejournal.com\/flood\/\" class=\"btn btn-sm btn-primary tagtag\">Flood<\/a> <\/p>\n<\/p><\/div>\n<div class=\"article-poll\" data-post=\"794789\">\n<div class=\"article-poll-vote\">\n<p>Was this article valuable?<\/p>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-no\">\n<form class=\"feedback-form\">\n<p>Thank you! Please tell us what we can do to improve this article.<\/p>\n<p> <textarea placeholder=\"Enter your feedback...\"><\/textarea> <button type=\"submit\" class=\"submit\" disabled>Submit<\/button> <button class=\"cancel\">No Thanks<\/button> <\/form>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-yes\">\n<form class=\"feedback-form\">\n<p>Thank you! <span class=\"percent\"><\/span>% of people found this article valuable. Please tell us what you liked about it.<\/p>\n<p> <textarea placeholder=\"Enter your feedback...\"><\/textarea> <button type=\"submit\" class=\"submit\" disabled>Submit<\/button> <button class=\"cancel\">No Thanks<\/button> <\/form>\n<\/p><\/div>\n<div class=\"article-poll-more-articles\">\n<p class=\"thank-you-text\">Here are more articles you may enjoy.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"author-byline clearfix\">\n<div class=\"author-byline-img\"> <img width=\"133\" height=\"200\" src=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2021\/03\/Jerry-Theodorou-4-1.jpeg\" class=\"attachment-200x200 size-200x200 wp-post-image\" alt decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2021\/03\/Jerry-Theodorou-4-1.jpeg 427w, https:\/\/www.insurancejournal.com\/app\/uploads\/2021\/03\/Jerry-Theodorou-4-1-200x300.jpeg 200w, https:\/\/www.insurancejournal.com\/app\/uploads\/2021\/03\/Jerry-Theodorou-4-1-387x580.jpeg 387w\" sizes=\"(max-width: 133px) 100vw, 133px\"> <\/div>\n<div class=\"author-byline-content\">\n<h4 class=\"author-byline-name\"> <small>Written By<\/small> Jerry Theodorou <\/h4>\n<p class=\"author-byline-bio\"> The R Street Blog on Insurance Journal presents the work and viewpoints of the free market think tank R Street Institute in Washington, D.C. Jerry Theodorou is the director of the Finance, Insurance and Trade Policy Program. He develops and advances effective free market public policy solutions to complex issues where federal and state governments have intervened. Prior to R Street, Theodorou was a Director of insurance research at Conning in Hartford, Conn. In his 12 years at Conning, a leading insurance asset management and research firm, he was highly sought after for his insights and publications on a broad range of matters impacting property and casualty insurers, and was in strong demand as keynote speaker at conferences. Prior to Conning, Theodorou worked for the global insurance giant American International Group (AIG) in a variety of global underwriting, operations and strategy roles, including close to a decade of expatriate managerial assignments in Europe and the Middle East. <\/p>\n<p> <a href=\"https:\/\/www.insurancejournal.com\/author\/jerry-theodorou\/\" class=\"author-byline-more\"> More From Author <i class=\"fas fa-caret-right\"><\/i> <\/a> <\/div>\n<\/p><\/div>\n<div class=\"subscribe-banner subscribe-banner-in-content-2\">\n<div class=\"content\">\n<h4>Interested in <em>Catastrophe<\/em>?<\/h4>\n<p>Get automatic alerts for this topic.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Article 0 Comments Hurricane Helene made landfall late Thursday, Sept. 26, in the Florida Big Bend, a sparsely-populated 150-mile coastal stretch from Apalachee Bay, south of Tallahassee, to Waccasassa Bay in the south. All&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":22537,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[88,1070,1071,1072,1,1073,45],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/09\/early-lessons-from-helene-show-catastrophes-are-here-to-stay-flood-insurance-vital.png","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22536"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=22536"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22536\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/22537"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=22536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=22536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=22536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}