Hurricane Haleen, just saying the name,
it's a lot to take in, right?
All the pictures, the stories, it's a lot.
So today we're doing a deep dive on something
we don't always talk about, insurance.
Specifically, the insurance mess left behind
after a storm this big.
And we've got a lot to cover today, by the way.
Articles from Barrens, Wired Time,
even The Washington Post,
and they all kind of agree on one crazy thing.
A lot of people, especially inland,
they just weren't covered for flood damage from Haleen.
Like, at all.
Yeah, it's a big blind spot.
Especially now with the climate changing so fast.
Totally, most people just assume,
I'm not on the coast, flooding is not my problem.
Haleen proved that's not true at all.
So can you maybe break down how we even got here?
Like, why is insurance such a mess
after these storms, especially flooding?
Well, you gotta go back, way back, to after World War II.
See, back then, private insurance companies,
they were having a moment like,
how do we even measure flood risk?
Data was bad, potential payouts were huge,
they weren't into it.
Makes sense. Right.
So basically they were like,
flood insurance, that's the government's problem now.
Passing the buck. Basically.
And that's how the National Flood Insurance Program
was born, the NFIP, they call it.
Totally separate from your regular homeowner's insurance.
Okay, so that's why there's even a separate thing
for flood insurance.
But what about these FEMA flood maps?
The Barrens article said those are totally obsolete now.
Yeah, they're really bad.
And this is where it gets even worse.
Those maps, they're mostly using old data, right?
Like, way old, doesn't factor in climate change at all.
So they're useless.
Basically.
It's like, using a map from the 50s
to drive around today, you can get lost fast.
And it's not even just the big stuff, like hurricanes,
it's those little rivers, creeks,
you know, the ones that really mess things up during Helene.
Oh yeah.
Those almost never show up on FEMA maps.
They slip through the cracks.
And that's where that analysis,
that 2021 from First Street Foundation, that was wild.
They said way more houses were at risk of,
what was it, a hundred year flood?
Way more than FEMA.
Way more.
And keep in mind, a hundred year flood
doesn't actually mean once every hundred years.
It means there's a 1% chance of it happening every year.
That's, yeah, that's a little different.
Right, it's not just a coast thing anymore.
Definitely not.
Like, take Asheville, North Carolina.
Asheville, that's in the mountains.
Exactly.
But First Street, they found something like 15% of properties,
at least, are at risk of flooding in the next 30 years.
But most people there, no clue,
they're looking at these old FEMA maps,
thinking they're safe.
Wow.
So you put it all together, bad info, insurance,
that doesn't make sense.
Yes.
It's a recipe for disaster.
It's kind of scary, right?
This whole outdated system,
trying to deal with climate change,
and it's regular people who get left behind.
But then on top of that,
you've got the whole insurance industry itself.
They're freaking out too,
and not just because of Haleen.
Yeah, it's a mess.
Homeowner's insurance, it's like through the roof.
Even places hurricanes never go.
Like, between 2021, 2023, just those couple of years,
average costs went up almost 20%.
20%, that's insane.
It's wild.
And then there's Florida, right?
They're like the poster child for this whole thing.
Total disaster down there.
Total.
Average homeowner, you're looking at more than $10,000 a year
just for insurance.
No way.
Yeah.
And it's so bad.
Some of the big companies,
just like Peace Out Florida,
canceling policies, refusing to cover anyone.
So what are people supposed to do?
That's like more than a mortgage payment for some people.
Right.
And the thing is, the NFIP, that government program,
it was supposed to be the safety net,
but even they're drowning.
Yeah, what's the deal with that?
I mean, they're the government, right?
They have money.
You'd think so.
But they're billions in debt
from other storms, other disasters.
It's a cycle.
They need to raise prices to match the risk,
which like we said, is way higher now.
And then nobody can afford it.
Exactly.
And then there's the politics, right?
Nobody wants to update the flood maps
because that means telling people,
hey, guess what?
You're in a danger zone now.
Pay up.
It's like a lose, lose situation.
Totally.
NFIP's going broke.
Private companies are bailing.
Homeowners are stuck.
And that Washington Post article,
they had some rough stories about North Carolina.
Like they've had okay rates there, but for how long?
Right?
For the people, they had no flood insurance at all.
I can't even imagine.
Seriously, it's just, like it's people's lives, right?
And that Washington Post article,
there was this one story, Stephanie Buchanan,
she lost like everything.
Creek flooded near her place in Bakersville, North Carolina
and boom, gone.
And she had no clue her insurance wouldn't cover it.
It's heartbreaking.
So many people that go through this awful thing
and then bam, another hit,
who like, oh, by the way, you're on your own.
And even if you do get FEMA money, $42,000,
that's the max usually, right?
It's like, what is that gonna cover?
Seriously, 42,000.
Some of these houses, that's like
the deductible on their insurance.
Exactly.
It's a band aid on a much bigger problem.
And it goes on too, even after the cameras are gone,
the whole economy in these places,
it gets wrecked, houses lose value, businesses close.
The Washington Post, they talked to this one expert,
Landry, I think, and he used this phrase,
collective amnesia.
Collective amnesia, what's that?
It's like, after these big floods,
housing prices go down, obviously, right?
But then five, 10 years later, people forget,
or they convince themselves, oh, it won't happen again,
and the price will go back up.
But with climate change, it will happen again.
Exactly.
It's like building a house on sand, you know?
It's not smart.
So the big question is, like, what now?
What can we even do?
Yeah, that's what I wanna know.
Right, some people, they say we gotta make flood insurance,
mandatory, like, core insurance.
Everyone pays in, everyone's covered.
That makes sense.
Then how do you pay for it?
Right.
How do you make it affordable?
And then some people, they want bigger FEMA payouts,
or four FEMA to cover, like, more stuff.
And that time article we talked about, remember,
they said every dollar we spend on, like, climate-proofing,
it could save us, like, $11 later.
Wow, that's a no-brainer.
Right, but honestly, even just us, like, people,
we can do stuff.
That Wired article they talked about in New Zealand,
they have this all-hazards insurance.
One policy covers basically everything.
Yeah, it's wild.
I don't know if it would work here, but still,
makes you think.
Definitely, so, okay, I think the takeaway here is,
knowledge is power, right?
Check your insurance, make sure you're covered,
don't trust those FEMA maps, and speak up.
Yes.
Tell someone, because this is, like,
way bigger than just one storm, you know?
Yeah.
Anyway, that's our deep dive for today.
Thanks for listening, until next time, stay safe out there.