As hurricanes Milton and Helene batter communities across the Southeast, experts estimate damages will exceed a staggering $50 billion each, placing these storms alongside Katrina, Sandy, and Harvey as some of the most financially destructive hurricanes in history. While death tolls from hurricanes have decreased due to improved preparedness, the economic toll continues to rise. This is largely because the hurricanes of today are far more intense and costly, amplified by a combination of climate change, soaring rebuilding expenses, and a striking lack of insurance coverage.
In Helene’s case, it’s estimated that only 5% of affected residents had insurance for flood damages, meaning that the overwhelming majority of losses are uninsured, leaving homeowners and local governments in financial jeopardy. This gap in coverage is particularly alarming given that many of the hardest-hit areas—such as Georgia, South Carolina, and North Carolina—report some of the nation’s lowest rates of federal flood insurance enrollment, with many counties showing rates of less than 10%.
“We are building more infrastructure and homes in vulnerable areas, even as storms grow more powerful,” said Susan Cutter, co-director of the Hazards Vulnerability and Resilience Institute at the University of South Carolina. She highlighted that more frequent and severe hurricanes mean that communities need to rethink rebuilding strategies. “We’re putting ourselves in harm’s way, and climate change is only making these events more costly and complex.”
The intensifying storms aren’t a fluke. Experts from the National Oceanic and Atmospheric Administration (NOAA) point to how climate change is transforming storm dynamics. “Today’s events are vastly different from yesterday’s,” noted John Dickson, president of Aon Edge Insurance Agency. Rising global temperatures mean that hurricanes can carry more moisture, leading to record-breaking rains and subsequent flooding. Physics dictates that for every one degree Fahrenheit increase in temperature, the atmosphere holds about 4% more moisture, which ultimately falls as torrential rain.
The astronomical damages from Milton and Helene serve as an urgent wake-up call to reconsider where and how we build. “It’s a societal issue, not just an insurance problem,” said Karen Clark, founder of disaster modeling firm Karen Clark & Co. “There’s scientific consensus that hurricanes and related flooding are becoming more frequent and severe. How we respond to this reality—whether through relocating homes, enforcing stricter building codes, or investing in resilience measures—will define how well we weather future storms.”
Meanwhile, federal relief funds are expected to provide some recovery aid, but many experts argue this approach has created a cycle of dependence that doesn’t address the underlying problem. Instead of encouraging residents to invest in costly flood insurance, communities often rely on federal disaster funds, which end up being funded by taxpayers. Clark described the scenario as “taxpayers essentially footing the bill for people to live in risky areas.”
The growing cost of flood insurance is also creating disparities in who can afford protection, leaving middle- and lower-income homeowners without adequate coverage in high-risk areas. As the climate crisis continues to unfold, experts like Cutter suggest that “managed retreat,” or relocating communities away from highly vulnerable areas, may need to become part of the conversation.
“Residents are facing a painful question,” Cutter explained. “At what point do you stop rebuilding in the same place, knowing that these storms will only keep coming?” The trend toward managed retreat is already happening in some areas, but experts suggest it may need to become a widespread approach as extreme weather events become the norm.
Looking ahead, the mounting toll of hurricanes like Milton and Helene underscore an urgent need for policy reform, climate action, and a shift in insurance practices. As experts warn of more “super-costly” hurricanes on the horizon, the message is clear: without structural changes in where and how we build, the financial and human costs of extreme weather will only escalate, challenging communities, insurers, and governments alike.
