Hurricane Harvey: 70% of home damage costs aren’t covered by insurance

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SUGAR LAND, TX - AUGUST 31: Homes are surrounded by floodwater after torrential rains pounded Southeast Texas following Hurricane and Tropical Storm Harvey on August 31, 2017 in Sugar Land, Texas. Harvey, which made landfall north of Corpus Christi August 25, has dumped nearly 50 inches of rain in and around areas Houston. (Photo by Scott Olson/Getty Images)

(CNN Money) — The latest Hurricane Harvey cost estimates show about 70% of home damages caused by flooding won’t be covered by insurance.

New preliminary data from CoreLogic, a property analytics firm, predicts that between $25 billion and $37 billion worth of flood loss has hit homes across southeast Texas and southwest Louisiana. Only about $6.5 billion to $9.5 billion of those costs will be covered by insurers.

The report doesn’t come as a complete surprise. A very small percentage of homes in Harvey’s path were covered by flood insurance from the beleaguered National Flood Insurance Program — a federally-funded program that is virtually the only flood protection available to homeowners.

Standard homeowners insurance policies cover damage from the high winds that are associated with a hurricane, but they don’t cover damage from rain or flood waters. In the case of Harvey, many of the damaged homes weren’t in high risk flood zones.

For Harvey victims who will be forced to recover without assistance from insurance, it’s a daunting challenge. Hundreds of people have turned to online crowdfunding in recent days to make pleas for assistance.

Related: Businesses donate over $113 million to Harvey relief efforts

The total flood loss estimate is basically in line with the $40 billion worst-case scenario prediction CoreLogic made on August 25, hours before Harvey made landfall.

But that model assumed Harvey would hit the Texas coast as a Category 3 hurricane and eviscerate more than 200,000 homes.

Instead, Harvey slammed Rockport, Texas as a Category 4 storm when it came ashore last Friday — but was downgraded to a tropical storm by mid-Saturday. Once it hit Houston, Harvey refused to move. It dumped an unprecedented 50-plus inches of rain on some areas of the city — causing devastating floods — before moving on to the Louisiana coast.

CoreLogic also said Friday that wind damage likely caused another $1 billion to $2 billion — but nearly all of that will be covered by insurer

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