Over 75% of Homes Damaged by Hurricane Debby May Lack Flood Insurance

More than three-quarters of the homes hardest hit by Hurricane Debby were located outside federal flood zones, meaning they weren’t required to carry flood insurance. Since standard homeowners insurance doesn’t cover flooding, uninsured damages from the storm could reach up to $12.6 billion, according to an analysis by the First Street Foundation.

Hurricane Debby made landfall on August 5 near Steinhatchee in Florida’s Big Bend region, bringing with it severe flooding as it moved inland.

“The storm’s slow movement significantly intensified its impact, particularly through heavy rainfall and storm surge,” noted the First Street report. “As Debby progressed inland, its slow pace allowed it to drop vast amounts of rain over the southeastern U.S., leading to catastrophic flooding, especially in parts of Georgia and South Carolina where several rivers overflowed.”

First Street’s simulation of Debby’s path estimated that around 385,000 properties were affected by the storm, with about 160,000 experiencing flood damage.

The report found that approximately 124,000, or 78%, of these impacted properties were outside the Federal Emergency Management Agency’s (FEMA) Special Flood Hazard Areas (SFHA). Property owners in these areas were not required to purchase coverage through the National Flood Insurance Program (NFIP), leaving them likely uninsured for the damage incurred.

The simulation estimated property damage along Debby’s path could range between $9.5 billion and $15.8 billion. Of this, between $7.6 billion and $12.6 billion may be uninsured if those outside the flood zones did not purchase flood coverage.

While most areas saw what would be classified as 1-in-100-year flood events, a few experienced more extreme events, equivalent to 1-in-200 or 1-in-240-year occurrences, according to the foundation. The damage was particularly severe in Florida, with extensive destruction reported in Hillsborough, Duval, Pasco, and Marion counties. Significant flooding also occurred in Fairfax County, Virginia; Charleston, South Carolina; and Wake County, North Carolina.

“Events like Debby continue to highlight the severe risk posed by water, particularly from storm surge and rain-induced flooding, emphasizing the need for accurate modeling when assessing hurricane risk,” said Jeff Waters, director of North Atlantic hurricane models for Moody’s RMS.

Hurricane Debby serves as a stark reminder for homeowners who may feel secure without flood insurance. Flood maps can change over time, and being outside a designated flood zone does not guarantee safety from such disasters.

Flooding can occur anywhere, even outside of high-risk areas, underscoring the importance of considering adequate insurance coverage.