Hurricane Helene Reveals Federal Assistance Gap in Appalachian Regions

By Andy Sullivan, Grant Smith, and Simon Jessop

In the aftermath of Hurricane Helene, residents of western North Carolina face significant challenges as they look to rebuild their lives, with many lacking access to federal flood insurance for assistance.

According to a Reuters analysis of government data, approximately 1 in 200 single-family homes in the area is covered by the National Flood Insurance Program (NFIP). This is a stark contrast to the higher coverage levels typically found in coastal and riverfront regions that the program was designed to protect.

The NFIP specifically addresses risks from rising seas and river flooding but does not account for extreme rainfall events like those caused by Hurricane Helene. The storm resulted in over 35 centimeters (14 inches) of rain over just three days, triggering mudslides and overwhelming creeks.

"It’s horrendous," lamented Aaron Smith, a resident of Bat Cave, as he surveyed the destruction of his home. "I don’t see anything to go back to."

Despite its growing reputation as a safe locale for those fleeing storm-prone areas, Asheville, the largest city in the affected region, was not spared. In fact, it became a temporary host to a national data center for environmental records, which was also impacted by the storm.

Interestingly, private insurance companies view the area as relatively low-risk; they proposed a significant rate increase for coastal regions while only seeking a modest hike for some mountain counties affected by Helene.

As climate change intensifies, experts like Jesse Keenan from Tulane University warn that no area can claim immunity from climate impacts, emphasizing that "there’s no such place as a climate haven."

Typically, private insurers do not provide flood coverage, leaving homeowners in at-risk areas reliant on the NFIP. However, as climate conditions evolve, the frequency and severity of heavy rainfall events are likely to rise due to warmer air holding more moisture. Historical data shows an increase in intense precipitation events across the United States since 1900, leading to more frequent flooding incidents.

Mountainous regions, particularly vulnerable to rainfall-induced flooding, exemplify this increased risk. For instance, a 2022 storm in eastern Kentucky resulted in catastrophic flooding that claimed 39 lives.

Despite the evident dangers posed by heavy rainfall, the Federal Emergency Management Agency (FEMA) does not factor in the risk of rain-induced flooding when updating flood insurance maps, which are used to determine where insurance is mandatory for federally backed home loans. This oversight has left many residents in mountainous and non-coastal areas unaware of their flooding risks.

FEMA maintains that its maps, which focus on river floods and coastal surges, are dictated by law and should not be interpreted as definitive predictions of flood occurrences. However, the disconnect between the actual risks and the coverage requirements is glaring, especially in areas like Appalachia where rainfall presents a significant threat.

An analysis of data revealed that 16% of residential and commercial properties in the 25 North Carolina counties most affected by Helene have a one in four chance of flooding within 30 years, the same criteria FEMA uses to classify flood zones. In comparison, 41% of properties along North Carolina’s coast share a similar risk.

Coverage levels also vary widely across regions. In coastal Dare County, 43% of single-family homes are insured under NFIP, whereas only 0.5% of homes in the western counties impacted by Helene have coverage, illustrating the risks communities face due to FEMA’s outdated flood risk assessments.

A survey from 2022 by Fannie Mae indicated that just 37% of residents in flood-prone areas were aware of their high flood risks. For those impacted by Helene who lack flood insurance, financial assistance options include up to $30,000 in federal disaster aid and loans from the Small Business Administration, which fall short of the $250,000 maximum coverage available through the federal flood program.

As community leaders begin to confront the costs of rebuilding, Asheville Mayor Esther Manheimer expressed concern over the financial and time demands this recovery process will entail. "What I worry about is the cost and the time that’s going to be needed to restore this community," she noted.