DISASTERSHurricane Helene Could Cost $200 Billion. Nobody Knows Where the Money Will Come From.
Even as the full scale of devastation in the mountainous regions of North Carolina and Tennessee remains unknown, it’s clear that Hurricane Helene is one of the deadliest and most destructive storms in recent U.S. history. Almost none of the storm’s devastation will be paid out by insurance.
Even as the full scale of devastation in the mountainous regions of North Carolina and Tennessee remains unknown, it’s clear that Hurricane Helene is one of the deadliest and most destructive storms in recent U.S. history. As of Friday, the storm had caused at least 180 deaths and destroyed or damaged many thousands of homes and other buildings.
In a preliminary damage estimate released on Thursday, the private forecaster AccuWeather pegged the financial cost of Hurricane Helene’s damages at $225 to $250 billion, more than double what it estimated in the first days after the storm made landfall in Florida last week — and far more than recent major hurricanes like 2012’s Sandy and 2017’s Harvey. That massive number includes the cost of rebuilding homes, businesses, roads, and infrastructure in the storm’s path from Florida to Tennessee, as well as the wages and economic output that will be lost during the yearslong rebuild.
Another fact that makes Helene’s devastation so unprecedented is that almost none of those hundreds of billions of dollars in losses will be paid out by insurance. While the storm caused most of its damage through flooding, which is covered under a government-run flood insurance program, very few residents of the southern Appalachian mountains hold flood policies — even those who live in federally designated flood zones. As of now, these storm victims in North Carolina and Tennessee have no guarantee of comprehensive public or private assistance as they try to piece their lives back together. The situation stands in stark contrast to other recent deadly storms like Hurricane Ian in 2022, where wind damage was paid out by standard homeowner’s insurance and flooding was limited to low-lying coastal areas where residents typically hold government flood insurance.
“A whole bunch of these [mountain] communities don’t have access to any of these things that can help you rebuild,” said Carolyn Kousky, an expert on disaster insurance who is the vice president for economics and policy at the nonprofit Environmental Defense Fund. “It’s going to be really heartbreaking. It’s going to be a very long time before they can rebuild.”
