Hurricane Florence May Lead To Thousands Seeking Federal Disaster Assistance Due To Lack Of Flood Insurance &

Tracey Johnson

No insurance and a lack of savings may lead to thousands of homeowners seeking federal disaster assistance in the wake of Hurricane Florence, according to a risk management and insurance professor. The Wall Street Journal reports that the latest statistics indicate that there has been a decline in flood coverage policies in North and South Carolina, leaving thousands of people in the lurch should a flooding disaster strike.

"As of July 31, the latest figures available, the 134,306 policies in place in North Carolina from the National Flood Insurance Program represented a 3.6% decline from 2013. In South Carolina, ownership was down 1.2%, to 204,342…"

Professor Robert Hartwig from the University of South Carolina's Darla Moore School of Business points out that residents from North and South Carolina may be less equipped to deal with disaster than in the past. He added that this trend of a lack of flood coverage is widespread in the U.S. and is exacerbated by the low savings balance of people across the country.

"We've seen people who've gotten their mortgages paid off, and even if they are in a high-risk flood zone, they haven't experienced flooding in their neighborhood, so they say, 'I'm not going to pay thousands of dollars for this insurance.'"

The second unusual factor is that it is predicted that she will slow down and gather more power and water, causing storm surges as more seawater is forced inland. This is when many predict that the actual damage will occur as heavy rains will wreak havoc.

"In South Carolina, two of the eight coastal counties have coverage rates above a third of the estimated housing units."