• FEMA estimates that Hurricane Helene could result in $3.5 billion to $7 billion in flood insurance losses.
• More than 55,000 claims have been reported for flood losses, with $830 million already paid out to policyholders.
• Most of the claims are from Florida, with six states affected.

SEE THE FULL PRESS RELEASE BELOW:
As of November 7, more than 55,000 flood damage claims have been reported to the National Flood Insurance Program (NFIP) from Hurricane Helene and it has paid out approximately $830 million in claim payments to policyholders. FEMA estimated that Hurricane Helene could generate between $3.5 billion and $7 billion in National Flood Insurance Program damage losses (initial estimate), including loss adjustment expenses. The losses include flood insurance claims received from six states, with the majority of claims coming from Florida.

The agency based its initial estimate on more data. These include policy information, daily claims and payout reports, significant historical event patterns of reported claims and payouts, current economic conditions, and claims adjusters’ observations. As NFIP flood insurance claims are submitted for payment, they are paid out of the National Flood Insurance Fund and Reserve Fund. The program also has the authority to borrow an additional $9.9 billion. In addition, FEMA currently has $1.92 billion in reinsurance coverage for fiscal year 2024. If a covered flood event results in NFIP claim payments that equal or exceed an agreed upon amount, then the reinsurers agree to pay a certain percentage of the NFIP flood risk.

The FEMA reinsurance program includes a traditional annual reinsurance program with a trigger of $7 billion or more for a coverage percentage and three capital market placements with coverage starting at $6.52 billion in claims payments received . To recover the full amount of reinsurance coverage, the National Flood Insurance Program would need to bear at least $11.5 billion in flood insurance claims losses from Hurricane Helene. The NFIP Reinsurance Program helps FEMA manage future NFIP exposure by transferring NFIP flood risk to private reinsurance companies and through a transforming reinsurer to private capital market investors. By providing reinsurance at a fair and reasonable cost, FEMA has an additional method to fund flood damage payments after catastrophic flood events.

Insurance providers, such as the NFIP, pay premiums to reinsurers. Instead, reinsurers provide coverage for losses incurred up to a certain amount for covered events, such as Hurricane Helene. While Hurricane Helene is a significant flood insurance event that may trigger reinsurance payments, FEMA will take several months to determine whether NFIP can collect under its reinsurance agreements. Additional information about FEMA’s National Flood Insurance Program can be found at FEMA.gov.