What Florida's post-hurricane landscape means for insurers

October 9, 2024 2:08 PM

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Storm-Helene-Causes-Massive-Flooding-Across-Swath-Of-Western-North-Carolina.jpg — A destroyed building is seen near Mill Creek in the aftermath of Hurricane Helene on Sept. 30 in Old Fort, North Carolina.

In the wake of Hurricane Helene's destruction, more than 200 people have been confirmed killed across Florida, North Carolina, South Carolina, Georgia and other areas — making it one of the deadliest hurricanes since Katrina in 2005. As total loss estimates continue to skyrocket, and the impending Hurricane Milton is set to wreak further havoc, insurers and consumers alike are left wondering what a post-storm landscape will hold.

Data released on Oct. 4 by CoreLogic, a global property data and analytics provider, estimates that total flood and wind losses caused by Helene land somewhere between $30.5 billion and $47.5 billion. Of those predicted totals, wind losses make up $4.5 billion to $6.5 billion, insured flood loss is $6 billion to $11 billion and uninsured flood loss is between $20 billion and $30 billion.

"The fact that so much damage was concentrated outside the Special Flood Hazard Areas (SFHAs) makes it challenging to realize the full extent of impact to uninsured homeowners," Jon Schneyer, director of catastrophe response at CoreLogic, said in a press release. "Thankfully FEMA's [National Flood Insurance Program] is expected to provide up to $6.5 billion of insurance for the recovery efforts, which will help bring much needed recovery aid to the affected areas."

Residents already underway with rebuilding are hunkering down once again as Hurricane Milton is expected to hit landfall on Oct. 9 around 8:00 p.m. EDT.

In situations like these, with two devastating storms sequentially making landfall, the appropriate deployment of resources and "on-the-ground" personnel like adjusters and third-party administrators to impacted areas can be challenging for insurers, said Robert Guinn, partner at the Floridian law firm Cole, Scott & Kissane, who specializes in property insurance.

"There is an incredible burden placed on companies, staff and vendors to have the necessary people in place for both Helene claims and Milton claims," Guinn said.

Measurements from the National Hurricane Center clock maximum sustained winds from Milton in excess of 150 mph, ranking the event as a high-end Category Four storm.

Added challenges following hurricanes go beyond allocating recovery experts to include increased risk of injuries during cleanup, mental health tolls from witnessing the destruction firsthand and more.

Woody Dwyer, director of loss control AmTrust Financial, said businesses can be exposed to a heightened risk of fraudulent workers' compensation claims by those who "attempt to take advantage of the situation by filing false claims for injuries that did not occur or were not work-related," he said.

From an insurance perspective, coverage can become a contentious battleground between providers and policy holders.

Californian residents dropped by their insurance providers pleaded with the California Assembly Insurance Committee last month after losing coverage due to increased wildfire risks.

Ricardo Lara, insurance commissioner for the state, issued a moratorium that prevents home insurers from cancelling policies for more than 750,000 residents affected by the Line, Airport and Bridge fires.

Michael "Fitz" Fitzgerald, insurance industry advisor for SAS, highlighted how everything from the classification of the event, to the nature of the damages incurred and even the nuances of policy coverage can further complicate recovery efforts.

"As a consumer, you're like 'I just want my stuff covered.' ... The part where it gets into the weeds is that you can buy a policy that will cover all of what might happen, but it'll just be extremely expensive," Fitzgerald said.

Read on to learn more about the storms and how consumers and insurers alike can start preparing to rebuild.

Florida faces new storm threat as region reels from Helene

Bloomberg News article by Alicia Diaz and Brian K. Sullivan

Florida is bracing for another potentially dangerous and costly hurricane less than two weeks after Hurricane Helene devastated a wide swath of the US Southeast.

Tropical Storm Milton, with winds of 40 miles per hour, is forecast to build into at least a Category 3 hurricane with winds of 115 mph when it makes landfall in western Florida on Oct. 9, the US National Hurricane Center said. Many areas across the state, including Tampa and Orlando, may get as much as 8 inches of rain. Some places might see as much as 12 inches, leading to a risk of flash flooding and rivers overflowing their banks.

"There is an increasing risk of life-threatening storm surge and wind impacts for portions of the west coast of the Florida Peninsula beginning late Tuesday or Wednesday," said Dan Brown, a branch chief at the US center. "Areas of heavy rainfall will impact portions of Florida Sunday and Monday well ahead of Milton."

Click here to read the full story.

Melissa Sue Gerrits/Photographer: Melissa Sue Gerrit

Hurricane Helene's damage estimate soars, tripling initial projections

Article by

Maria Volkova

Expected property damage from Hurricane Helene has more than tripled nearly one week after the powerful storm battered parts of the Southeast.

Helene is the deadliest hurricane to hit the mainland U.S. since Katrina in 2005, with at least 227 people confirmed dead, the Associated Press reports.

Total insured wind and flood losses are predicted to be between $10.5 billion and $17.5 billion, according to CoreLogic's most recent report. Earlier estimates had placed the cost of insured damages between $3 billion and $5 billion.

Click here to read the full story.

Hurricane Helene Hits Gulf Coast Of Florida

Joe Raedle/Getty Images

Hurricane Helene insurance losses expected to reach $6.4B

Bloomberg News article by Alexandre Rajbhandari

The destruction from Hurricane Helene is expected to cost insurers roughly $6.4 billion, according to an early estimate from catastrophe modeling firm Karen Clark & Company.

The insured losses in the estimate would cover wind, storm surge and inland flooding damage across nine states, KCC said in a statement on Oct. 2.

Helene made landfall in Florida's Big Bend region last week as a Category 4 hurricane, with winds reaching 140 miles per hour. The storm wreaked havoc inland as far north as Ohio, bringing catastrophic flooding and leaving more than 100 people dead and millions without power.

Click here to read the full story.

Aerial imagery of damage to a building as a result of Hurricane Helene, EagleView

EaglieView

Flooded farms, fouled rivers, dozens dead: Helene's rising toll

Bloomberg News article by Ilena Peng, Gerson Freitas Jr, Ari Natter and Josh Saul

As historic floodwaters unleashed by Hurricane Helene recede across the US Southeast, the region faces a humanitarian, economic and ecological crisis of staggering scope, with effects likely to last years.

Cotton crops on the verge of harvest have been flattened. Sewage and industrial chemicals have poured into swollen rivers. Key pieces of the power grid have been destroyed. Chicken flocks in some of the country's largest poultry-producing states have drowned. Mines that produce high-quality quartz for computer chips remain closed.

And the toll in human lives keeps rising, with at least 166 confirmed dead across six states and countless others displaced. The federal government reported 29 shelters open, with more than 1,000 occupants.

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Storm Helene Causes Massive Flooding Across Swath Of Western North Carolina

Sean Rayford/Getty Images

N.C. insurance commissioner talks about Helene relief and claims efforts

Article by

Michael Shashoua

After the devastation of Hurricane Helene in the western part of North Carolina, the state has been acting to rescue survivors and provide emergency food, water and supplies. Also, the state's Department of Insurance has begun deploying staff to help residents file insurance claims.

Digital Insurance spoke with insurance commissioner Mike Causey on Oct. 1 about his department's efforts. He described challenges with getting relief from FEMA. The following excerpts have been edited for clarity.

Click here to read the full story.

Hurricane Helene Causes Massive Flooding Across Swath Of Western North Carolina

Melissa Sue Gerrits

Homebuyers drawn to Asheville are hit by Hurricane Helene

Bloomberg News article by Michael Smith and Ari Natter

Nestled in North Carolina's bucolic Blue Ridge mountains far from the coast, Asheville was supposed to be a refuge from extreme weather supercharged by climate change. Waves of tourists, retirees and affluent home buyers were drawn to the city's arts scene, with the mild weather and altitude making it feel like a haven.

That illusion was ruined. The destruction wrought by Hurricane Helene has been catastrophic — expansive flooding, wrecked roads, bridges, power lines and drinking water systems. At least 40 people are dead.

"You can't escape climate change, you know, it's everywhere," said Jesse Keenan, a professor of sustainable real estate at Tulane University in New Orleans, who has long included Asheville on a list of top US cities for people seeking resilience to global warming. "There are places that are just better off than others, but even the places with comparatively lower risk still have risk."

Click here to read the full story.

White pick-up truck suspended hood first in creek with back end leaning on a tree

BELFOR Property Restoration

N.C., Florida regulators step up after Hurricane Helene

Article by

Michael Shashoua

FEMA and state authorities are on the ground in areas hit by Hurricane Helene late last month, with Florida acting to protect insurance policyholders from being dropped and North Carolina assisting those affected with making insurance claims.

President Biden declared disaster areas in Florida and North Carolina on Sept. 28, making FEMA assistance funds available. FEMA's National Flood Insurance Program (NFIP) was up for renewal on Sept. 30, but Biden signed a temporary funding bill on Sept. 26 that will last through Dec. 20, which will keep NFIP funded for that time.

In North Carolina, the state's department of insurance has dispatched consumer assistance staff to help with insurance claims and "other needs." There are less than 6,000 NFIP policies in areas of North Carolina affected by Helene, according to North Carolina state senator Natasha Marcus, who is running against incumbent insurance commissioner Mike Causey in the upcoming election.

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Joe Raedle/Photographer: Joe Raedle/Getty I

Helene leaves US South reeling from flooding and power outages

Bloomberg News article by Lauren Rosenthal

Rescue missions are underway across the US South as the region reels from historic flooding caused by Hurricane Helene, which has killed at least 52 people and knocked out power to millions, putting stress on aging dams and leaving behind potential losses of more than $100 billion.

Water rescues were reported on Sept. 28 in northern Tennessee and in North Carolina, which saw nearly 31 inches (79 cm) of rainfall from Helene in some places, according to the Weather Prediction Center — the current maximum recorded anywhere. Search and rescue teams from 19 other states have deployed to North Carolina, so far helping to rescue more than 200 people from Helene's floodwaters.

"This is a historic and catastrophic storm for Western North Carolina and I'm grateful to first responders working right now to save lives and evacuate residents," Governor Roy Cooper said in a statement. "Efforts are also underway to get power and communications restored, and we're bringing in needed supplies by air."

Click here to read the full story.

AI-generated illustration showing aerial view of a flood-ravaged village with submerged houses.

Virtual Art Studio - stock.adobe.com

Extreme weather is disrupting the claims and repair industry

Article by

Grace Crane

Severe weather events such as hurricanes, floods, hailstorms and wildfires are increasing in frequency and intensity on a global scale. Earlier this year, experts predicted an overactive hurricane season, urging communities to prepare for potential loss and insurers across lines to take a more proactive approach to catastrophic weather impacts through data-driven insights and technology. In the face of climate change, some carriers are adopting tools like IoT tech, satellite aerial imagery and parametric insurance.

Risk Management Partners, a unit of Munich Re, recently announced a partnership with IT consulting firm CGI to help insurers reduce claims and increase profitability. Munich Re will combine its Intelligence Platform with CGI's climate risk mitigation offerings to provide insurers with a platform that enables data-driven decision-making.

"We are delighted to join forces with CGI in helping insurers address increasing climate risks," said Christof Reinert, head of Risk Management Partners at Munich Re, in a press release. "Climate change and the need to drive forward sustainability actions will continue to grow in importance, and insurers are looking for proven expertise and innovative solutions to respond to these trends. Our combined offering will deliver the comprehensive climate risk mitigation capabilities insurers need."

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behindlens - stock.adobe.com

Insights on climate change risk and tools insurers are using

Article by Digital Insurance staff

Climate technology, like predictive analytics, is essential for insurers as they manage the risks associated with climate change.

Recent reports from The Geneva Association including a survey of insurance C-level executives finds that early engagement of re/insurers in climate tech projects is critical to improving project risk assessment and securing financing.

The National Association of Insurance Commissioners (NAIC) issued a call for property market data from insurers to gather information on the impact of climate change on insurance.

Digital Insurance gathered several stories to highlight what technology tools insurers are using to better understand the risks associated with the climate crisis.

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