The Federal Emergency Administration Company stated it must borrow $2 billion from the U.S. Treasury to cowl claims from Nationwide Flood Insurance coverage Program policyholders.
FEMA, administrator of NFIP, stated it expects to pay out greater than $10 billion in flood claims associated to hurricanes Helene and Milton in 2024 – in addition to claims for different flooding occasions final 12 months.
“The NFIP shouldn’t be designed to pay for a number of catastrophic occasions in a single 12 months with out further monetary help,” FEMA stated. “The mixed losses from 2024 have depleted the NFIP’s funds generated from premiums to pay claims.”
Greater than 57,400 flood claims associated to Hurricane Helene have been dealt with by this system, which has paid out greater than $4.5 billion as of Feb. 6. It expects to pay losses from Helene of between $6.4 billion and $7.4 billion.
For Milton, the NFIP has thus far paid out over $740 million as of Feb. 6 on over 21,100 claims. The vary of ultimate losses from Milton is estimated to be $1.2 billion to $2.9 billion, FEMA stated.
Milton was a fourth quarter 2024 hurricane, hanging Florida on Oct. 9. For the personal insurance coverage business, Milton will go down as the most expensive hurricane of the historic 2024 season, and the storm will doubtless be one of many costliest of all time. However Milton was extra of a wind occasion than Helene, which made landfall at what is named Florida’s Huge Bend as a Class 4 in late-September earlier than dumping document rainfall in Southeast states together with Georgia, North Carolina, and South Carolina.
FEMA’s debt is now about $22.5 billion. It has the authority to borrow as much as about $30.4 billion and already had borrowed $20.5 billion following hurricanes Katrina, Sandy and Harvey, FEMA stated.
Elizabeth Asche, senior govt of the NFIP, stated it’s “strategically using short-term borrowings in 60-day increments, demonstrating our cautious and accountable administration of the borrowing authority.”
“The widespread, devastating flooding following hurricanes Helene and Milton reemphasizes the monetary results flooding can haven’t simply to survivors but in addition the Nationwide Flood Insurance coverage Program,” she stated.
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