When Hurricane Helene brought severe flooding to western North Carolina, many homeowners faced devastating losses—only 3 percent had flood insurance.
Among those affected was Sharon Herring of Yancey County, whose home was washed away by the Cane River. With no flood insurance, she relied on a $55,070 FEMA payout to purchase a wilderness-grade trailer, where she now plans to live permanently.
North Carolina Insurance Commissioner Mike Causey is urging more homeowners to consider flood coverage, pointing out that while only 20% of homes nationwide carry flood insurance, 90 percent of natural disasters involve flooding. FEMA provides an online tool to help residents assess their flood risk, but the cost of coverage remains a major barrier.
The National Flood Insurance Program (NFIP), the primary flood insurer, is $20.5 billion in debt due to a high concentration of policyholders in flood-prone areas. With limited premiums coming in and large payouts required after disasters, the program faces financial strain. Private flood insurance options may offer lower rates, but affordability remains a challenge.
Herring was quoted a $5,000 annual premium for coverage—an expense she wasn’t willing to take on. For many homeowners in flood-prone areas, this leaves them with difficult choices: pay steep premiums, risk financial devastation, or find alternative living arrangements after disaster strikes.
As extreme weather events become more frequent, the gap in flood insurance coverage raises concerns about long-term recovery options for uninsured homeowners. Experts recommend that all homeowners assess their flood risk and explore available insurance options before disaster strikes.