NFIP paid out nearly $4B in Hurricane Ian flood claims

National Flood Insurance Program claims related to Hurricane Ian have totaled $3.9 billion, according to the Federal Emergency Management Agency, which reported that around 95% of the approximately 48,000 claims in Florida and the Carolinas have been closed as of May 2, 2023.

Of that total, $445 million went to replace damaged contents, according to FEMA. The average payment was more than $104,000.

“Flooding is the most common and most reoccurring natural disaster. Yet, damage caused by flooding is rarely covered by most homeowners and renters’ insurance,” David Maurstad, assistant administrator for the Federal Insurance Directorate and senior executive of the NFIP, said in a release. “Flood insurance remains the best defense against this threat, enabling policyholders to protect their property and more quickly jumpstart their road to recovery.”

Within a week after Hurricane Ian made landfall, FEMA began making payments. Policyholders were able to receive between $5,000-$20,000 prior to an adjuster’s inspection, according to the agency.

FEMA estimated NFIP losses would reach as high as $5 billion in November of last year.

In a document laying out its disaster relief funding requirements for fiscal year 2024, FEMA estimated it would need $3.7 billion to cover its obligations for damages from hurricanes Fiona and Ian. Through the 2027 fiscal year, the agency projects that Ian will cost more than $7 billion and Fiona losses could reach as high as $5.5 billion.

A majority of the NFIP claims come from Florida, which accounts for around 35% of policies in the federal government’s insurance program. The Carolinas combined account for slightly more than 7% of NFIP policies.

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