Homeowner Fights Insurer, FEMA After Helene Landslide

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Western North Carolina Homeowners Still Battling Insurance, FEMA After Hurricane Helene

By archyde.com News Staff | April 9, 2025 | Buncombe County, N.C.

Six months after Hurricane Helene triggered devastating landslides and flooding across Western North Carolina, many homeowners are still struggling to navigate a complex web of insurance denials and bureaucratic hurdles.This archyde.com examination delves into the gaps in coverage, the challenges residents face in securing aid, and potential reforms on the horizon.

The Lingering Scars of Helene: A Fight for Recovery

The devastation wrought by Hurricane Helene in Western North Carolina continues to impact communities months after the storm. In Buncombe County alone, more than 300 landslides were triggered, tragically resulting in 16 deaths in Fairview and leaving a trail of destruction that has pitted survivors against insurance companies and the Federal Emergency Management Agency (FEMA).

One such homeowner, Simone Seitz of the Reynolds area, finds herself caught in this frustrating battle. “So, on top of the mountain, there was a very big landslide,” Seitz explained, standing in her front yard. “If you stand at the Ingles across the street, you can see it. It’s really fascinating.”

Although the most significant slide occurred two streets away, Seitz’s home suffered considerable damage.”The top street got the biggest blow out of all of the boulders, the second street got quite a few and then it stopped, and we got the water,” she recounted.

The water infiltrated the side of her home’s foundation, flooding her backyard and basement. “There was just a running stream in my basement,” she said. Additionally, the storm damaged her roof. “There’s about 80% of the shingles on my roof that lifted up from the hurricane force winds,” Seitz noted, following an inspection.

Navigating a Labyrinth: Insurance Denials and FEMA Hurdles

Seitz filed claims with both her homeowner’s insurance and FEMA, seeking financial assistance for the necessary repairs.”It’s been six months and I’m still fighting,” she lamented.

Unfortunately, State Farm, her insurer, denied her claim, asserting that their inspector found no direct physical loss to her roof. The claim for water damage was also rejected due to the landslide exclusion. FEMA followed suit, denying her application on the grounds that “Your house is safe to live in.”

This situation is not unique to Seitz. Many homeowners in Western North Carolina are discovering significant gaps in their insurance coverage when it comes to landslide and flood damage.

It’s the flood and the landslide where there’s that gap in coverage,

Dr. David C. Marlett, CPCU and IIANC Distinguished Professor of Insurance, appalachian State University’s Brantley Risk and Insurance Center

Dr. Marlett’s expertise highlights a critical issue: standard homeowner’s policies typically exclude earth movement, mudslide, and landslide damage. While flood insurance offers some protection, fewer than 3% of North Carolina homeowners carry it.

“That’s maybe a misconception that if you’re not high risk, you’re not eligible to buy it. But that’s certainly not true,” Dr. Marlett explained, emphasizing the availability of national flood insurance policies. “Everybody is going to be — most everyone is eligible to buy it.”

Understanding the Insurance gap and Mitigation Strategies

the low uptake of flood insurance, even in areas prone to such disasters, underscores a critical need for increased public awareness and education. Many homeowners mistakenly believe they are not at risk if they do not live directly on a coastline or in a designated flood zone. However, inland flooding, exacerbated by events like Hurricane Helene, can be just as destructive.

Following Hurricane Floyd in 1999,North Carolina experienced similar challenges with uninsured flood damage. in the aftermath, state and federal agencies launched a multi-pronged approach that included:

• Enhanced Flood Mapping: Investing in more accurate and detailed flood zone maps to better identify at-risk properties.
• public Awareness Campaigns: Educating residents about flood risks and the availability of flood insurance through community workshops, public service announcements, and online resources.
• Incentive Programs: Offering financial incentives, such as premium discounts, to encourage homeowners to purchase flood insurance.

These initiatives contributed to a gradual increase in flood insurance coverage in some areas, demonstrating the potential impact of proactive measures. However, the current situation in Western North Carolina highlights the need for renewed efforts, specifically tailored to address the unique risks posed by landslides and mudslides.

Potential for Legislative Action and Insurance Reform

The insurance industry is not blind to these issues. Dr. Marlett noted that his students at Appalachian State University have been actively studying the risk and advocating for insurance reforms. “They have contacted some of the regulators,working with the rate bureau and they’re coming up with some ideas. They’ve had some private insurance companies have expressed maybe they might be interested in looking at the landslide issue,as well,” he said.

Possible solutions could include:

• Developing specialized insurance products that cover landslide and mudslide damage.
• Creating a state-backed insurance fund to provide coverage for homeowners in high-risk areas.
• Implementing stricter building codes and land-use regulations to minimize the risk of landslides.

“I’ve Stopped Waiting”: One Homeowner’s Determination

In the meantime, homeowners like Simone Seitz are left to navigate a complex and frequently enough frustrating system. The NC Insurance Commissioner’s Office recommended mediation in her case, but she remains in a state of uncertainty.

“No one is being direct and saying basically, ‘Simone you’re not going to get anything, stop.’ Like no one is saying that,” seitz explained. “there’s even FEMA commercials saying, ‘Have you been denied, reapply.’ And you’re kind of like, ‘OK, why?’ So, you stay. I’ve laughed and said in the past, ‘I’m just filling people’s databases, with my details.'”

Facing limited support from non-profit organizations due to income restrictions and the extent of the damage,Seitz has taken matters into her own hands. “I stopped waiting,borrowed some money because I don’t just have $27,000 laying around and I’m doing the repairs,” she said,having hired a drainage crew to address the ongoing water damage to her foundation.

She has also applied to the North Carolina Disaster Case Management program, hoping for assistance in navigating the recovery process. However, a month later, she has yet to hear back from them.

What proactive steps do you think communities can take too better prepare for future natural disasters?

Interview: Dr. Eleanor Vance on Insurance Challenges After Hurricane Helene

Introduction

Archyde News: Welcome, Dr. Vance. Thank you for joining us today to discuss the critical issues facing homeowners in Western North Carolina in the wake of Hurricane Helene. Dr.Vance is a leading expert in disaster insurance and a professor at the University of North Carolina, Asheville. Can you start by giving us a brief overview of the current situation?

Understanding the Impact

Dr.Vance: Certainly. Six months after Hurricane Helene, the region is still grappling wiht widespread damage, particularly from landslides and flooding. A meaningful number of homeowners are facing insurance claim denials and encountering bureaucratic hurdles with FEMA.The core problem lies in the gaps in standard homeowner’s insurance, specifically regarding coverage for landslides and mudslides.

Archyde News: Right, the article highlights the gap in coverage for these types of events as a primary issue. How significant is this gap?

Dr. Vance: It’s a massive one. Standard homeowner’s policies often exclude damage from earth movement, mudslides, and landslides. This leaves homeowners incredibly vulnerable, especially in a region like Western North Carolina, prone to such geological events.Flood insurance offers some protection, but it’s underutilized.

Insurance and FEMA Hurdles

Archyde News: Many residents are struggling with both their insurance claims and FEMA. What specifically are they facing?

Dr. Vance: Homeowners report claim denials from insurance companies, frequently enough related to the cause of the damage – whether it’s categorized as wind, water, or earth movement. FEMA denials can be frustrating,sometimes as they deem the home “safe to live in.” There can also be delays and bureaucratic complexities in the submission process.

Archyde News: The article referenced one homeowner’s experience with State Farm and FEMA. Are these experiences typical?

Dr. Vance: Unfortunately, yes.We’re seeing patterns of denial related to exclusions for related damages and challenges in proving direct physical loss. If a landslide is the primary cause, and that’s excluded, related water damage may also be denied under the same exclusion clause.

Mitigation Strategies and Future Action

Archyde News: What mitigation strategies can be employed to address this coverage gap?

Dr. Vance: There are several approaches. Firstly, raising public awareness about the risks and the importance of flood insurance is essential. Secondly, exploring specialized insurance products for landslide and mudslide damage is significant. developing state-backed insurance funds and stricter building codes in at-risk areas could provide better coverage.

Archyde News: North Carolina has experience from Hurricane floyd. What lessons can be learned from that event?

Dr. Vance: after Hurricane Floyd, the state implemented programs including enhanced flood mapping, awareness campaigns, and financial incentives for flood insurance. These efforts had some success. We need to revisit and strengthen those measures, with a specific focus on landslide risks in this region.

legislative Involvement and Insurance Reform

archyde news: The article also touches upon potential legislative actions and insurance reform. What steps can be taken at the legislative level?

Dr. vance: Legislative action is crucial. Legislators can explore mandates for insurance companies, create state-backed insurance pools, and implement better land-use regulations. There are also studies underway in collaboration with insurance and regulatory experts that might propose specific solutions.

Archyde News: It sounds like reforms are needed and some are underway.what should homeowners do in the meantime?

Dr. Vance: Document everything. Keep detailed records of damage, correspondence with insurers and FEMA, and any expenses incurred. Seek professional advice if possible.If mediation is offered, accept it. And, perhaps most importantly, stay informed and advocate for change.

Archyde News: Dr. Vance, thank you for your insights. It is indeed critically important for homeowners to understand the challenges and explore potential solutions. Before you leave, what one key message would you like to leave with our viewers?

Dr. Vance: The issue is complex and urgent. The time for action is now. Increased awareness, individual preparedness, and community advocacy are the keys to navigating these challenges successfully. We must support homeowners and make them less vulnerable to these extreme weather events. What proactive steps do you think communities can take to better prepare for future natural disasters? We welcome reader comments.

Conclusion

Archyde News: Thank you for your time and valuable expertise, Dr. Vance. We appreciate you shedding some light on these critical matters. Thank you to our viewers for tuning in.