Nov 12, 2024
More than 80% of Floridians don’t have flood insurance and FEMA was unprepared for the deluge of assistance calls after Hurricane Milton made landfall near Siesta Key, Florida on October 9, according to agency data.
CBS News reported that at least 24 people died in the wake of the hurricane. Following an October 11 emergency declaration, Floridians made over 135,000 calls to FEMA that required inspection. However, only 46% of those calls were answered, leaving more than 68,000 disaster response inspections pending.
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The volume of calls in Florida was so overwhelming that FEMA could respond to only 39 out of 106 emergency calls for a separate disaster in Alaska on October 16. The agency’s slow response to Hurricane Milton stands in stark contrast to its response to Hurricane Helene.
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Just over two weeks earlier, FEMA responded to 76% of Floridians’ calls during Hurricane Helene and answered 67% of calls in North Carolina and 78% in South Carolina. Over 230 people across six states died in the storm, ABC News reported. While FEMA left 54,000 inspections pending across three states following the September 28 emergency declaration, its overall response rate during Hurricane Helene was markedly better than for Hurricane Milton. FEMA responses have ranged between 85% and 99% for half of all disasters in 2024.
So why was Hurricane Milton different?
Hurricane funding shortfalls
On October 2, days after the Hurricane Helene disaster declaration, Homeland Security Secretary Alejandro Mayorkas announced that FEMA had exhausted its funds to handle hurricanes.
“FEMA does not have the funds to make it through the season,” Secretary Mayorkas told reporters aboard Air Force One.
The hurricane season, which typically lasts until November 30, was predicted to be above-average in activity, according to the National Oceanic and Atmospheric Administration. FEMA was already short on hurricane response funds when Hurricane Milton hit.
On October 11, President Biden said that Congress needed to pass increased funding for FEMA, but it was not scheduled to sit again until November 12. Neither Mayorkas nor Biden specified the exact funding amount FEMA required.
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The financial toll
As of October 31, FEMA has spent a total of $1 billion helping Florida recover from Hurricanes Helene, Milton, and Debby. Insurance firms have estimated hurricane damage costs between $20 and $200 billion.
Hurricane Helene was largely a water damage event, and because most Americans don’t have flood insurance, that means damage from the storm will largely go uninsured.
Hurricane Milton was largely a wind damage event, however, meaning insurers will indemnify more of the devastation.
Homeowners insurance and flood damage
Standard homeowners insurance typically doesn’t cover flood damage resulting from bad weather. While it will pay for issues like burst pipes, it won't pay out anything for flood damage caused by storms like Hurricane Helene.
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Homeowners in flood zones can buy separate flood insurance, often required by mortgage lenders. Most of these policies come from FEMA’s National Flood Insurance Program (NFIP) and cover the building, foundation, electrical system, HVAC, flooring, appliances and debris removal.
Options for insured homeowners
If FEMA declares a disaster in your region, you may be eligible for individual disaster assistance. Currently, FEMA has declared 30 counties in Florida as disasters areas.
FEMA grants a maximum of $43,600 home replacement and repairs to Hurricane Milton victims, according to disaster recovery charity SPB USA.
Additionally, the U.S. Small Business Administration (SBA) offers loans for personal property losses, even for non-business owners.
Floridians selling damaged homes ‘as is’
Following the back-to-back impacts of hurricanes Helene and Milton, many Florida homeowners are selling their flood-damaged properties under terms like "as is," "cash only" and “for investors.”
The Tampa Bay market has seen a surge in such listings from homeowners desperate to get rid of houses that have become financial liabilities.
One homeowner, Linville, decided to “cut her losses.” After purchasing her home in 2021 for $575,000, it has flooded three times in two years and it has been stripped down to the studs again.The home is now listed for $425,000, reflecting the estimated cost of remaining flood repairs.
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William Koblensky Varela is a Staff Reporter at Wise who has worked as a journalist for seven years covering finance, local news, politics, legal issues and the environment.
