As residents of western North Carolina begin recovering from the destruction caused by Hurricane Helene, many will find themselves without federal flood insurance to help with rebuilding efforts.
According to a Reuters analysis of government data, only about 1 in 200 single-family homes in the region are covered by the National Flood Insurance Program NFIP, a much lower rate compared to coastal and riverside areas, which the program was primarily designed to protect.
The NFIP focuses on the risks of rising seas and swelling rivers, but it doesn’t account for the extreme rainfall that came with Hurricane Helene. The storm dropped over 14 inches of rain in just three days, causing mudslides and transforming creeks into raging torrents.
It’s horrendous, said Aaron Smith, whose home in Bat Cave was destroyed by the storm. “I don’t see anything to go back to.
Increasing Rainfall Risks
Asheville, the largest city in the region, had been seen as a safe haven from climate risks, attracting new residents from more storm-prone areas. Even the federal government relocated its national environmental data center to Asheville in 2015, only for the facility to be knocked offline by Helene.
Private insurers have historically viewed the region as relatively low-risk. This year, the industry requested a 99% rate increase for coastal areas but only a 4% hike for some of the mountain counties affected by Helene. The storm, however, demonstrated that no place is entirely safe from the impacts of climate change, according to Jesse Keenan, a professor at Tulane University who studies climate migration. “There’s no such thing as a climate haven,” Keenan said.
Flood coverage from private insurers is rare, so most homeowners and businesses in flood-prone areas turn to the NFIP, which covers 4.7 million properties nationwide. However, heavy rainfall events are expected to worsen as climate change progresses, with warmer air capable of holding more moisture. The Environmental Protection Agency notes that precipitation in the U.S. has increased alongside rising temperatures since 1900, with rain and snow falling in more intense bursts.
Mountain regions are particularly vulnerable to rainfall-driven floods. In 2022, a summer storm in eastern Kentucky dumped as much as 4 inches of rain per hour, leading to floods that destroyed homes and killed 39 people.
Mismatch in Coverage
Despite the rising risks from rainfall, the Federal Emergency Management Agency (FEMA) does not account for rain-induced flooding when creating flood maps that determine where people are required to buy flood insurance. FEMA’s maps primarily focus on river flooding and coastal storm surges.
This leaves many homeowners outside coastal or riverside areas unaware of their flood risk and without the required insurance. “Where it can rain, it can flood,” said FEMA spokesperson Daniel Llargues, explaining that FEMA’s maps should not be viewed as predictions of future flooding.
The disparity is especially notable in Appalachia, where steep mountains funnel rainwater into narrow valleys, leading to flash floods. Climate scientist Jeremy Porter points out that this region exemplifies the gap in flood risk awareness across the country.
A Reuters analysis of data from the First Street Foundation found that 16% of properties in the 25 North Carolina counties hardest hit by the storm face a 1-in-4 chance of flooding within the next 30 years, a key threshold used by FEMA to designate flood zones. Meanwhile, 41% of coastal properties in North Carolina face the same risk.
Flood insurance coverage also varies dramatically by region. While 43% of single-family homes in coastal Dare County are covered by the NFIP, only 0.5% of homes in the western counties impacted by Helene have coverage, according to federal and census data.
Economist Carolyn Kousky from the Environmental Defense Fund suggests that FEMA should update its maps to reflect the rainfall risks, as many residents in mountainous areas remain unaware of the dangers. A 2022 survey by Fannie Mae found that only 37% of residents in flood-prone areas knew they faced a high risk of flooding.
Those affected by Helene who lack flood insurance can apply for up to $30,000 in federal disaster aid and loans from the Small Business Administration. However, this is only a fraction of the $250,000 worth of coverage available through the federal flood program.
Community leaders are already facing the daunting challenge of rebuilding. What I worry about is the cost and the time it’s going to take to restore this community, Asheville Mayor Esther Manheimer told Reuters.