Flood Insurance In The Wake of Hurricane Florence

The good news is that South Carolina is the second-highest insured state in regards to flood insurance with 65% of properties in a flood zone having insurance. The bad news North Carolina, the state the suffered the most flooding, only 35% of the homes in a flood zone have insurance.

Hurricane Florance parked itself on North Carolina bringing 90mph winds, storm surges, and flash floods.

The one thing that Hurricane Harvey taught residents of the United States is that flood insurance is important. Since the devastation in Midland and Odessa, Texas and Louisianna, over 145,000 new policies were written. But federal officials state that there are too many Americans that do not have flood insurance simply because most property insurance doesn’t offer it. Floor insurance is run by the Federal Emergency Management Agency aka FEMA.

The issue is that many Americans who should have flood insurance aren’t in a flood zone and aren’t mandated to have it. And who would opt for extra insurance when they aren’t mandated by FEMA, especially when the area they lived in hasn’t been flooded in several years.

Data has shown in the past 5 years that North Carolina and South Carolina that residents with insurance have dropped 3% and 6% respectively.

Fortunately for FEMA, when Hurricane Florence hit it was downgraded to a Category 1 Hurricane the amount of damage is less severe than originally thought. Since Hurricane Katrina, FEMA has been shelling out billions of above what they collect in premiums. In fact, Hurricane Harvey and Irma caused FEMA to reach it’s max borrowing limit at $30.5 billion. In order to renew the flood insurance program, Congress forgave FEMA’s $16 billion in debt.