Yahoo News Explains: Who pays the bill after hurricane devastation?

Yahoo News VideoOctober 11, 2018


Yahoo News Explains: Who pays the bill after hurricane devastation?

By Kayla Jardine

Hurricane Michael slammed the northwest coast of Florida, leaving at least 2 dead.


The Category 4 storm caused extensive damage to coastal areas of the state’s Panhandle, but many didn’t evacuate because Michael was only upgraded to a Category 4 hours before it hit.


“As Hurricane Michael continues its destructive path through the panhandle and leaves our state, we’re turning 100 percent of our focus on search and rescue and recovery,” said Florida Gov. Rick Scott.


But after the hurricane is long gone, who’s responsible for the bill? Yahoo News explains.


The National Flood Insurance Program, which is managed by FEMA, helps bail out people in disaster areas, and as a result, it’s $20.5 billion dollars in debt.


While the damage following Hurricane Florence has yet to be officially calculated, the U.S. can borrow only $9.9 billion more from the NFIP for all future disasters, before the cap is reached, according to FEMA.


Only 42% of Florida’s 2.5 million homes in disaster areas are covered by flood insurance, so many will likely turn to federal assistance.


Those who don’t have insurance should be prepared to receive much smaller amounts.


When Hurricane Harvey hit southeast Texas in 2017, those with flood insurance received an average of $120,000 from their insurers, while those who relied on FEMA for monetary assistance got an average of $5,500.


For perspective, just five inches of water can cause at least $11,000 worth of damage.


Most of the money the NFIP doles out for relief is in the form of a low-interest disaster loan and needs to be repaid.


FEMA acknowledges
, “Any grants that may be provided are not enough to cover all losses.”


Which is why it encourages people to purchase flood insurance, whether or not they’re in a high-risk zone.


Those outside these zones still file more than 20% of all NFIP claims because flooding is the #1 natural disaster in the U.S.

https://www.yahoo.com/news/yahoo-new...202229592.html