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As Southeast residents are beginning the arduous process of rebuilding their homes post-Hurricane Helene, a staggering issue has come to light: a significant lack of flood insurance coverage. Hundreds of thousands of households affected by the storm lack this essential protection, primarily because it wasn't thought necessary, was unaffordable, or wasn't mandated.

In flood-hit counties across Georgia, North Carolina, and South Carolina, less than 1 percent of households possess flood insurance through the federal program, which provides the bulk of flood policies nationwide. "People never thought they would have a problem with flooding," remarked Jimmy Isaacs, fire chief of Boone, North Carolina. In Boone's Watauga County, less than 2.5 percent of households are insured. Isaacs noted, "It's going to be a difficult recovery."

Hurricane Helene underscores the vast deficiencies in U.S. flood insurance, bringing to light the ramifications of climate change, which heightens flood risks. Homeowners' insurance typically excludes flood damage, pushing the responsibility onto FEMA's National Flood Insurance Program, which insures 4.6 million homes and businesses nationally. However, many inland homeowners refrain from purchasing insurance, leaving millions vulnerable to the financial devastations of floods.

In the hardest-hit disaster areas of North Carolina, South Carolina, and Georgia, only about 2 percent of households have FEMA flood insurance. South Carolina saw a mere 0.5 percent of its 770,000 disaster-struck households with coverage. In North Carolina, the insurance rate in disaster areas was just 0.8 percent. Georgia saw an 8.5 percent rate, considerably buoyed by Chatham County's policies; excluding Chatham, only 0.7 percent of Georgian households in disaster areas were insured. Comparatively, Florida boasts one of the highest rates, with 24 percent coverage in affected counties.

The insufficient insurance coverage could severely hamper recovery efforts, draining savings, and pushing some residents to abandon their homes. Particularly hard-hit will be low-income communities with fewer resources and limited access to credit.

Flood insurance through FEMA can provide up to $250,000 for building repairs and an additional $100,000 for personal property. However, inaccurate FEMA flood maps, which many criticize for failing to reflect current risks, compound the problem by giving a false sense of security to those outside high-risk zones.

Residents without insurance may receive FEMA's emergency aid, which is limited to a few thousand dollars, or apply for low-interest loans from the SBA, contingent on having an adequate credit score. Previous disasters, such as Hurricane Florence in 2018 and Hurricane Harvey in 2017, have demonstrated the severe financial strain on uninsured households, often forcing them into mortgage defaults or causing significant home value declines.

Andrew Rumbach, a housing researcher at the Urban Institute, warned that issues would only worsen as climate change increases the frequency and severity of major rain events. "These problems are not going to get any better in the future. They're going to get worse," he stated, stressing the need for proactive planning to close the insurance gaps exposed by Hurricane Helene.