Bridging the Inland Flood Protection Gap: Lessons from Hurricane Helene

The Devastation of Hurricane Helene

Hurricane Helene's trail of destruction across the southeastern United States has underscored the critical need for improved inland flood resilience planning and insurance uptake. The hurricane, which spanned over 500 miles, caused catastrophic flooding, landslides, and extreme rainfall, resulting in hundreds of deaths and billions in insured losses. Most of these losses were concentrated in western North Carolina, particularly in Buncombe County, where Asheville and its historic arts district were submerged under nearly 25 feet of water.

The Inland Flood Protection Gap

Less than 1 percent of residents in Buncombe County had federal flood insurance when Helene struck, highlighting a persistent protection gap. This gap is not unique to North Carolina; similar scenarios have played out in New York City during Hurricane Ida and in eastern Kentucky in 2023. According to FEMA, only a few dozen federal flood insurance policies were in effect in the affected areas before these recent storms. This lack of insurance coverage forces most victims to rely on federal grants and loans, significantly slowing recovery efforts.

Addressing the Gap Through Education and Innovation

Low inland take-up rates largely reflect consumer misunderstandings about flood insurance. Many homeowners are unaware that a standard homeowners policy does not cover flood damage. Additionally, misconceptions about the necessity of flood coverage and the tendency to drop coverage once a mortgage is paid off contribute to this gap. To address this, there is a need for public education and awareness campaigns. New tools such as parametric insurance and community-based catastrophe insurance offer innovative ways to improve flood resilience. These tools can provide liquidity and support post-catastrophe resilience, making insurance more available and affordable.

For readers, it is crucial to understand the importance of flood insurance and to consider purchasing it, especially if living in high-risk areas. Stay informed about local flood risks and insurance options, and consider consulting with insurance professionals to tailor coverage to individual needs.