Hurricane Helene struck the U.S. in September 2024, leaving widespread destruction in its wake. By early October, over 200 people were confirmed dead, and thousands of homes were damaged.

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To make matters worse, many flood victims are now discovering they lack insurance coverage for the damage. Here's why.

Homeowners insurance policies exclude flood damage

Standard homeowners insurance typically doesn’t cover flood damage resulting from bad weather. While it will pay for issues like burst pipes, it won't pay out anything for flood damage caused by storms like Hurricane Helene.

Homeowners in flood zones can buy separate flood insurance, often required by mortgage lenders. Most of these policies come from FEMA’s National Flood Insurance Program​ (NFIP) and cover the building, foundation, electrical system, HVAC, flooring, appliances and debris removal. It also pays for personal belongings, but only at their actual cash value, which is usually less than the replacement cost. However, it doesn't cover cars, septic systems or additional living expenses.

FEMA policies have strict limits: up to $250,000 in protection for the building and $100,000 for its contents, and you'll have to pay a deductible.

The problem? Few homes in inland areas hit by Helene had flood insurance. The Washington Post estimated only 0.8% of homes in affected inland counties had coverage, leaving most homeowners without insurance to help with flood-related losses.

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What can you do if your insurance won't cover you?

If your insurance won't cover storm damage, you may qualify for FEMA’s Individual Assistance Program, which provides up to $42,500 for housing and $42,500 for other costs. Be advised many people receive less. FEMA has listed 108 counties affected by Helene where victims can apply for aid online. File your claim, and be ready to appeal since many are denied or offered less than needed.

Also, contact your insurer. If wind caused some damage, you might be eligible for partial coverage. Doing this ASAP is important, as well, so you can have the damage documented.

If you have the funds, start cleaning up your home as soon as possible to mitigate damages and avoid issues like mold, which insurers won’t cover if it’s preventable. Keep detailed records of all expenses in case reimbursement is possible.

Rebuilding will be tough, but with hard work, you'll be able to come out stronger in the end.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.