### North Carolina Faces Insurance Crisis After Hurricane Helene Devastates Region

Five days after Hurricane Helene ravaged Boone, North Carolina, David Marlett, managing director of Appalachian State University's Brantley Risk & Insurance Center, headed to the campus to assist students and local residents with their insurance claims. Marlett expressed little optimism, anticipating that many affected individuals would find themselves inadequately insured. "I'm dreading it," he said. "So many people are just not going to have coverage."

The hurricane, which initially made landfall near Tallahassee, Florida, with winds reaching 140 miles per hour, caused havoc as it moved inland. By the time it reached North Carolina, it had already brought significant destruction to Georgia. The storm’s most surprising effects, however, were seen in inland North Carolina. Buncombe County alone reported at least 57 fatalities. Communities far from the coastline experienced extraordinary rainfall, resulting in floods, sinkholes, and blocked roads.

Homeowners in North Carolina face a challenging insurance landscape, particularly when it comes to storm-related damages. While standard homeowner policies cover wind damage, they do not cover flooding, which requires a separate policy from the National Flood Insurance Program (NFIP). Marlett noted, "The property insurance market for homes was already a patchwork system that really doesn't make a lot of sense."

The NFIP, established in the late 1960s, remains the primary source of flood insurance but has struggled with debt and low participation rates. According to FEMA, only about 4 percent of homeowners nationwide have flood insurance. In some parts of Appalachia affected by Helene, fewer than 2.5 percent of homeowners are enrolled in the federal program. This low uptake is exacerbated by outdated floodplain maps that have not been updated to reflect current climate science.

Additionally, many homeowners' policies have exclusions for earth movements, such as landslides and sinkholes, adding another layer of complexity for those impacted by the storm. While states like California have mandates for additional insurance to cover such events, North Carolina lacks similar requirements, leaving many homeowners unaware of their vulnerabilities.

The broader insurance industry in the United States is also under strain. A New York Times analysis reported that homeowners' insurers lost money in 18 states in 2023 due to costly natural disasters such as hurricanes and wildfires. Consequently, insurance premiums have surged. In Florida, with some of the highest insurance costs in the country, the average homeowner paid over $10,000 per year in 2023.

Despite these challenges, North Carolina’s insurance market has remained relatively stable, with no insurers leaving the state since 2008, and average annual premiums around $2,100. Yet, as the frequency and severity of natural disasters increase, the need for more resilient insurance models becomes clear.

Experts like Donald Hornstein, a law professor at the University of North Carolina, argue that current flood maps and insurance models are hopelessly outdated, creating significant risks for homeowners. Marlett suggests looking to international examples, like New Zealand's all-encompassing insurance policies, for a more effective response to the challenges posed by climate change.

The immediate future looks grim for many affected by Hurricane Helene, with inadequate insurance coverage exacerbating the disaster's impact. FEMA payouts may only provide minimal relief, and the road to recovery appears long and arduous for the residents of western North Carolina.