June 2020
- Five of the top 10 most costly hurricanes to hit the United States did damage in North Carolina: Hurricanes Irma and Harvey in 2017, Hurricane Sandy in 2012, Hurricane Michael in 2018 and Hurricane Charley in 2004. (See chart.)
- North Carolina was also battered by Hurricane Floyd, which caused $1.4 billion in insured losses in the state in 1999 (about $2.1 billion in 2019 dollars). These losses do not include flood damage covered under the federal government’s National Flood Insurance Program.
- There were 140,107 flood insurance policies in North Carolina in 2018. Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the National Flood Insurance Program.
- In North Carolina about 268,000 single-family homes were at risk for storm surge damage from hurricanes up to Category 5 strength in 2020, according to CoreLogic, Inc. These homes would cost $59.5 billion to completely rebuild, including labor and materials.
- Of the 11 most hurricane-prone counties in the U.S., five are in Louisiana, three are in Florida and two are in North Carolina, according to a study by the U.S. Census (see chart).
- The number of people living in coastal areas in North Carolina increased by 508,000 people or 114.4 percent, from 1960 to 2010, according to the U.S. Census Bureau.
- North Carolina has two residual market plans that act as a market of last resort for residential and commercial property insurance in the state. The North Carolina Joint Underwriters Association (NCJUA) was created in 1969 to make basic and broad property insurance available to those unable to buy coverage through the standard insurance market. The plan, known as a FAIR Plan, covers the entire state except those barrier islands adjacent to the Atlantic Ocean. The North Carolina Insurance Underwriting Association (the state’s Beach Plan), also created in 1969, provides windstorm and hail coverage as well as homeowners policies for properties located in the state’s beach and coastal area.
- As of fiscal year 2019, North Carolina’s beach and windstorm plan reported a total of 210,903 policies up from 94,612 policies reported at the end of 2004. Total exposure to loss under the plan increased to $75.7 billion in fiscal year 2019 from $31.6 billion in 2004 – an increase of 140 percent.
- The North Carolina JUA/IUA plans have accessed the capital markets four times (2009-2011 and 2013) to provide them with additional reinsurance protection in the event of a hurricane. The NCIUA/NCJUA’s risk financing program provides approximately $3.3 billion in protection for the benefit of North Carolinians.
Other Resources
I.I.I. Facts & Stats: Flood Insurance
I.I.I. Facts & Stats: Hurricanes
I.I.I. Issues Updates: Catastrophes
I.I.I. Issues Updates: Hurricane and Windstorm Deductibles
