State Farm General Insurance Co. and Citizens Property Insurance Corp. are preparing for losses in what could become the most expensive insurance event in US history, as the devastation from Hurricane Helene continues to be tallied.
According to data from AM Best, State Farm was the top provider of home and auto insurance in Georgia and South Carolina, as of the end of 2023. The company also has significant exposure in Florida and North Carolina. On Sept. 30, State Farm reported receiving more than 50,000 auto and homeowner claims related to the storm, with the number expected to grow.
On the other hand, Citizens Property Insurance Corp. received around 10,000 claims in Florida, where it's the largest insurer.
The extent of insurer losses won't be known for months. Helene caused damage from Florida to Ohio, with flooding, over 100 deaths, and millions left without power. AccuWeather Inc. estimates the total economic impact, including lost wages, canceled flights, and supply chain issues, could reach $160 billion, making Helen one of the most costly storms in the country's history.
Insured losses may be lower, as flood damage is typically not covered by standard property insurance policies. Homeowners need additional flood insurance from private companies or through the National Flood Insurance Program. According to American Property Casualty Insurance Association senior vice president Robert Gordon, less than 1% of homeowners in the hardest-hit areas outside Florida had flood insurance. Even in high-risk flood zones in Florida, only 35% of homes are covered, according to FEMA.
For comparison, Georgia and South Carolina homeowners carry less flood insurance than those in Florida. Based on Bloomberg's calculations, Florida holds five times more private flood insurance and nearly 14 times more federal coverage than Georgia.
CoreLogic estimated insured losses could reach $5 billion, with AM Best suggesting that figure could be even higher. For reference, Hurricane Ian, which struck in 2022, caused over $50 billion in insured losses.
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