Devastating Hurricane Helene Leaves Trail of Destruction Across Southeastern US, Estimated Damage Reaches $34 Billion
The southeastern United States is reeling from the catastrophic impact of Hurricane Helene, with early estimates suggesting the storm’s damage could reach a staggering $34 billion. The private insurance industry’s limited presence in affected areas may leave Congress to foot a significant portion of the bill.
Mark Zandi, chief economist at Moody’s Analytics, warned that Helene could further disrupt the already fragile insurance market. “I wouldn’t be surprised if [Helene] sends another monkey wrench into the insurance market,” Zandi stated.
The storm’s fury, which included 140-mile-per-hour winds and widespread flooding, has left a trail of devastation across Florida, Georgia, North Carolina, South Carolina, Virginia, and Tennessee. As of Thursday, the death toll had surpassed 200, with hundreds more reported missing. Nearly 1 million people remained without power.
Moody’s initial report estimated property damage could range from $15 billion to $26 billion, with an additional $5 billion to $8 billion in productivity losses due to the economic slowdown. Zandi cautioned that these estimates are likely to be revised upward as the full extent of the damage becomes clear.
A significant challenge lies in the fact that flood insurance, rather than standard property insurance, is responsible for covering storm surges and river flooding. However, many affected areas have low flood insurance take-up rates, leaving a significant gap in coverage.
The Federal Emergency Management Agency (FEMA) has been coordinating the recovery response, but its budget constraints have raised concerns. A recent $20 billion cash infusion has provided some relief, but lawmakers are calling for a supplemental disaster relief funding package to address the full scale of the damage.
President Joe Biden has hinted that he may request Congress to end its recess early to pass the necessary funding, a move supported by several lawmakers from affected states. However, others argue that FEMA should provide a firm dollar amount for what is needed before Congress returns to vote on the funding.
As the region struggles to recover, federal leaders are working to provide support where possible. Federal Reserve Chair Jerome Powell has pledged to ensure that banks in affected areas have sufficient cash to facilitate transactions, even in the event of extended power outages.
The full extent of Hurricane Helene’s damage remains to be seen, but one thing is clear: the road to recovery will be long and arduous, requiring a concerted effort from government agencies, lawmakers, and the private sector.
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