18 September 2018Insurance

Hurricane Florence to expose gaps in flood insurance

Hurricane Florence is likely to expose the flood protection gap of homeowners in the Carolinas and other vulnerable regions, according to the Associated Press.

An analysis of federal flood insurance records by the Associated Press found that that there are large gaps in flood coverage in the US. In North Carolina, where forecasters say the storm might bring the most destructive round of flooding in state history only 35 percent of at-risk properties are insured against floods, according to the research.

Hurricane Florence drenched North Carolina with more downpours on Sunday, Sept. 16, damaging tens of thousands of homes and threatening worse flooding as rivers fill to the bursting point.

Florence is expected to cause $30-60 billion in economic impact and damage, according to estimates. At the same time, insured losses from Hurricane Florence will only be around $2.5 billion, according to KCC estimates.

Federal officials reportedly say there are too many Americans in vulnerable areas who lack flood insurance — even after storms such as Sandy, Matthew and Harvey caused widespread property damage and financial losses with storm surge and rainfall.

The Federal Emergency Management Agency (FEMA) requires most homeowners with mortgages living in certain designated areas to buy flood insurance. However, there are numerous neighbourhoods across the US that are vulnerable to flooding but where insurance isn’t mandatory and many residents choose not to enroll — sometimes with dire consequences, according to the Associated Press.

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news

SCOR rumoured to face new takeover approach by Covéa

Tokio Marine Kiln hires Novae CFO as Dover departs

Hurricane Florence insured loss estimated at $2.5bn

Insurtech Setoo secures €8m funding from AXA

Marsh acquires JLT for $6.4bn

FedNat estimates Hurricane Florence loss at $4m

Chubb appoints new reinsurance officer

Ascot MGA Ethos appoints new CEO

Thomas Miller acquires MGA operations

Don't miss our insurtech email newsletter - sign up today

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
18 September 2018   FedNat currently estimates that its aggregate gross liabilities as a result of Hurricane Florence will be $4 million based on preliminary post-landfall catastrophe model estimates.
Alternative Risk Transfer
13 September 2018   Hurricane Florence could trigger the risk transfer mechanisms put in place by the National Flood Insurance Program (NFIP) – for the second year in a row.