Helene Should Trigger a National Rethink of Home Insurance

Hurricane Helene has highlighted significant flaws in the U.S. home insurance system, particularly regarding flood coverage. Many affected homeowners lack flood insurance, which is often not included in standard policies. The rising costs of home insurance, which have increased by about 20% over the past two years, are exacerbating the affordable housing crisis, as developers struggle with soaring premiums. The situation is dire in regions like Appalachia, where only a small percentage of homeowners have flood insurance, leaving many without resources to rebuild after the storm. Experts suggest that the current insurance model, which prioritizes profit over protection, needs reform. Proposals include establishing Housing Resilience Agencies to provide public disaster insurance and coordinate risk reduction efforts, shifting the burden of mitigation from individuals to community-level initiatives. This approach contrasts sharply with current practices, particularly in Florida, where the state has incentivized private insurers at the expense of public coverage. The ongoing crisis calls for a reevaluation of how risk is managed and shared, potentially leading to mandatory coverage for all property owners, similar to models in other countries. Without significant changes, the home insurance crisis is likely to worsen, further displacing vulnerable populations and straining public resources.

- Hurricane Helene exposed gaps in flood insurance coverage for homeowners.

- Home insurance costs have risen significantly, impacting affordable housing development.

- Experts advocate for the creation of Housing Resilience Agencies to improve disaster preparedness.

- Current insurance practices prioritize profit, leaving many without adequate coverage.

- A reevaluation of risk management and potential mandatory coverage is necessary to address the crisis.