Early estimates from catastrophe modeling firm Karen Clark & Company (KCC) suggest that Hurricane Helene could cost insurers roughly $6.4 billion in damages. The figure includes losses from wind, storm surge, and inland flooding across nine states. Helene made landfall in Florida’s Big Bend region last week as a Category 4 hurricane, with sustained winds of 140 miles per hour, before wreaking havoc as far north as Ohio.
KCC reported that, contrary to typical Category 4 hurricanes, Helene’s most severe wind damage occurred in Georgia, rather than Florida, while the most devastating inland flooding happened in North Carolina. The insured losses cover privately insured automobiles, residential, commercial, and industrial properties, as well as business interruption impacts.
Among the hardest hit are State Farm General Insurance Co. and Citizens Property Insurance Corp., two leading insurers in the Southeast, who have already processed more than 60,000 claims combined. While the insured losses are significant, they fall far short of the total economic impact of the storm.
Flood damage, typically excluded from standard property insurance policies, will not be covered unless homeowners have supplemental policies or are insured through the National Flood Insurance Program. KCC noted that property owners in Georgia and South Carolina have lower levels of flood coverage compared to Florida, where residents are more accustomed to severe storms.
The total economic damage from Hurricane Helene could reach a staggering $160 billion, according to AccuWeather Inc. This figure includes the broader impact of the storm, such as lost wages, supply chain disruptions, and canceled flights, potentially making Helene one of the five costliest storms in U.S. history.
