Hurricane Helene may have bypassed the heavily populated Key Biscayne and Miami regions, but the aftermath could still impact insurance rates for Floridians in the coming year. Though the precise economic damage from the storm is yet to be fully tallied, early estimates indicate it could surpass $100 billion across multiple states, according to Alejandro Perez-Duque, CEO of Key Biscayne’s PVG Insurance Group.
Insurers are bracing for significant payouts, with initial estimates from catastrophe modeling firm Karen Clark & Company placing the insurance losses at around $6.4 billion. This comes on the heels of a record $40 billion in insured losses already reported in the U.S. this year from severe storm activity, much of which was linked to Hurricane Debby in August.
However, despite Helene’s widespread devastation, experts suggest it may not lead to the same insurance market upheaval caused by Hurricane Ian in 2022. Steve Bowen, chief science officer at Gallagher Re, notes that Helene’s impact centered on Florida’s Big Bend, a relatively rural and less densely populated area, which could make it more manageable for Florida’s insurers.
Mark Friedlander of the Insurance Information Institute echoed this sentiment, predicting that the event should be more contained for residential insurers. In contrast, Hurricane Ian’s $21 billion in insured losses forced some insurers to shut down their Florida operations or declare insolvency, contributing to a significant strain on Citizens Property Insurance Corp., the state’s insurer of last resort. That event led to sharp rate increases for policyholders, a trend that may not repeat on the same scale as Helene.
CoreLogic estimates that insured losses in Florida and Georgia from Helene will range between $3 billion and $5 billion, excluding flood damages under the National Flood Insurance Program. Meanwhile, Moody’s Analytics puts total losses between $20 billion and $34 billion, and AccuWeather projects the overall economic loss could reach as high as $160 billion.
The key issue in claims from Helene, according to Perez-Duque, will be distinguishing between wind damage (which saw gusts up to 140 mph) and flood damage (with properties submerged in several feet of water). As of early October, over 60,000 insurance claims had been filed in Florida alone.
While some Florida homeowners were beginning to see slight decreases in their insurance premiums, that trend could reverse depending on how insurers adjust to Helene’s aftermath. Moreover, Perez-Duque warned that for insurance and reinsurance firms, the storm represents a pivotal moment that could affect future rates and coverage availability, particularly as Florida’s insurance market was only beginning to stabilize after Hurricane Ian.
Many residents in other states, especially inland areas like Georgia, South Carolina, and North Carolina, remain vulnerable due to the lack of federal flood insurance coverage. According to Perez-Duque, the heavy rains from Helene drenched areas unprepared for such flooding, leaving most homeowners without insurance for the damage.
The storm’s toll is staggering, with more than 160 fatalities and countless homes, businesses, and crops destroyed. The far-reaching devastation—from power outages and sewage overflows to losses in agriculture and high-tech industries—will likely have lasting effects on communities and the economy alike. Helene’s wide-ranging destruction may serve as a sobering reminder of the evolving challenges insurers face as climate events grow in frequency and intensity.
