Millions of Carolina Homes Are at Risk of Flooding. Only 335,000 Have Flood Insurance.
In the Carolinas, a quarter to half of the households near the coast are insured, said Ray Lehmann, a member of SmarterSafer, a coalition of taxpayer groups, environmental organizations, insurers and others that has pushed for flood-insurance reform.
Further inland, it’s another story.
“We’re talking about places in North Carolina where the coverage is less than 1 percent,” said Mr. Lehmann, also the director of finance, insurance and trade policy at the R Street Institute, a think tank that promotes free-market policies.
…
Not well. It needs more premium-paying policyholders, said Mr. Lehmann. That would spread the risks over a bigger group. As of now, the program does not bring in enough revenue to cover the cost of payouts to homeowners. On average, it has run a $1.4 billion annual deficit since Hurricane Katrina.
…
Yes. The program can still borrow nearly $10 billion before reaching its borrowing capacity. And it has roughly $6 billion in cash, Mr. Lehmann said. That probably would be enough to pay claims from Hurricane Florence.
“But there are more storms on the way,” he said.
