FEMA has raised its estimated losses for the National Flood Insurance Program (NFIP) due to Hurricane Helene to between $6.4bn and $7.4bn.
As of February 10, 2025, more than 58,400 flood insurance claims linked to Hurricane Helene have been filed, totaling over $4.8bn. This marks an increase from the 55,000 claims reported on November 7, 2024, when FEMA set the loss estimate between $3.5bn and $7bn.
The agency now projects an additional $400mn in total losses, raising the upper estimate to $7.4bn.
Hurricane Milton’s impact is also significant. Based on the same January 31 data, FEMA estimates its NFIP losses at $1.2bn to $2.9bn. The program has received more than 21,100 flood insurance claims related to Milton, totaling over $740mn.
With total losses from these hurricanes surpassing $10bn, FEMA has borrowed $2bn from the U.S. Treasury under the National Flood Insurance Act of 1968 to cover policyholder claims. Typically, NFIP premiums cover claims in years without severe flooding.
However, the storms in 2024, including Helene and Milton, caused extensive damage, leading to tens of thousands of claims that exceeded available funds.
NFIP’s total borrowing authority stands at $30.425bn. Of this, $20.525bn had already been borrowed due to hurricanes Katrina, Sandy, and Harvey between 2005 and 2017.
The total debt now stands at $22.525bn. NFIP provides $1.3tn in coverage to nearly 4.7mn policyholders nationwide.
Elizabeth Asche, NFIP Senior Executive, stated, “The severe flooding from hurricanes Helene and Milton highlights the financial strain flooding places on both survivors and the NFIP. We are using short-term borrowings in 60-day increments, demonstrating careful financial management. Despite these challenges, the NFIP remains fully committed to paying every valid claim and ensuring policyholders receive compensation for eligible losses.”
Less than two weeks after Hurricane Helene made landfall along Florida’s Big Bend as a Category 4 storm, Hurricane Milton came ashore near Sarasota, Fla., on Oct. 9, 2024, as a Category 3. While coastal residents in the Southeastern U.S. are accustomed to major storms during hurricane season, Helene in particular resulted in inland devastation that was significantly different.
In some parts of Western North Carolina and Eastern Tennessee the effects of Helene from damaging winds and flooding are still being assessed weeks after the storm, and some local governments remain unable to quantify both the damage and repairs necessary. Hurricane Milton continued across Florida, leading to flooding and nearly 120 tornadoes that destroyed properties along the state’s east coast.
Hurricane Helene’s projected track across Florida’s panhandle and the South has potential implications for public safety and business continuity.
Nearly 162,000 commercial real estate properties in the state have a greater than 50% probability of being exposed to wind speeds of at least 50 mph
