Damage estimates from Hurricane Helene are increasing, tripling initial forecasts

The expected property damage from Hurricane Helene has tripled nearly a week after the powerful storm beaten parts of the southeast.

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

Total insured losses from wind and flooding are estimated to be between $10.5 billion and $17.5 billion, according to CoreLogic’s latest report. Previous estimates put the cost of insured damages at between $3 billion and $5 billion.

Overall, total losses from flooding and winds are estimated at $30.5 billion to $47.5 billion. A significant portion of these total losses comes from uninsured flood damage, estimated to be between $20 billion and $30 billion.

Standard homeowners insurance typically does not cover flood damage, so homeowners must purchase separate coverage through National Flood Insurance Program or private insurers, meaning real-time estimates may be higher, CoreLogic said.

“When intense storm surges and flooding like Hurricane Helene reach regions that are rarely affected by natural hazards, we can expect to see damage to homes without flood insurance coverage,” said Jon Schneyer, Director of Response to catastrophes at CoreLogic, in a written statement. “The fact that so much damage was concentrated outside Special Flood Hazard Areas (SFHAs) makes it difficult to realize the full extent of the impact on uninsured homeowners.”

The NFIP offered by the Federal Emergency Management Agency is expected to provide up to $6.5 billion in insurance for recovery efforts, Schneyer added.

Insured flood losses from NFIP and private insurance are estimated to be between $6 billion and $11 billion, while wind damage is estimated to be between $4.5 billion and $6.5 billion , the CoreLogic report said.

In response to the devastation, mortgage companies and others in the financial services industry stepped in to help affected communities.

Fairway Independent Mortgage announced a $1 million relief fund on September 30. This assistance is available to those who received loans through Fairway as well as its own employees who were adversely affected by damage from Hurricane Helene, according to a news release.

Meanwhile, Fannie Mae, Freddie Mac and the US Department of Housing and Urban Development announced mortgage relief measures to help homeowners in Florida, North Carolina and South Carolina. Late last week, HUD expanded its relief program for distressed borrowers in Georgia.

Hurricane Helene’s devastation on local communities is also causing young adults to rethink their future home buying plans. Nearly a third of US residents between the ages of 18 and 34 say they are reconsidering where they want to live because of the storm, a report commissioned by Redfin found.

“Hundreds of Americans flocked to the Sun Belt during the pandemic as remote work allowed them to take advantage of the region’s relatively low cost of living,” said Daryl Fairweather, chief economist at Redfin, in a statement . “Some thought Appalachia was insulated from hurricane risk, not realizing that the area is prone to flooding and that hurricanes can sometimes cause flash flooding far from the ocean.”

“Americans are starting to realize that nowhere is truly immune to the impacts of climate change, and we’re starting to see that impact where people want to live, even people who haven’t experienced a catastrophic weather event firsthand,” Redfin’s chief economist. added.