- Human-caused climate change is intensifying hurricanes, likely including Hurricane Helene, but stronger hurricanes do not necessarily lead to greater losses and damage.
- The estimated property damage and economic disruption caused by Hurricane Helene is at least $20 billion, with total losses projected to surpass $100 billion.
Hurricane Helene’s path through the U.S. in late September 2024 caused devastation, tragic loss of life in the hundreds and a staggering financial toll, with property damage and economic disruptions estimated at a minimum of $20 billion.
Experts now anticipate total losses could soar beyond $100 billion, placing it among the top five costliest hurricanes in U.S. history. While the storm’s intensity was driven in part by human-induced climate change, experts argue that enhanced mitigation efforts can limit damage from future storms, even as climate risks continue to rise.
Climate Change's Role in Supercharging Helene
Hurricane Helene's destructive force wasn’t an anomaly — it fits a troubling pattern.
As global temperatures rise, driven by greenhouse gas emissions, the oceans are absorbing over 90% of this excess heat, fueling more powerful hurricanes. The Caribbean Sea and Gulf of Mexico, where Helene formed and tracked, recorded sea temperatures as high as 31°C, creating an energy-rich environment for the storm to intensify.
However, despite these factors, Helene did not reach the upper echelons of storm strength. While classified as a Category 4 storm at landfall in Florida with winds peaking at 140 mph (225 km/h), Helene did not reach the ferocious 156 mph (252 km/h) speeds required for Category 5 status. This crucial factor helped reduce the storm's potential for catastrophic wind and storm surge damage.
In terms of scale, Helene’s maximum width of 240 miles (675 km) was near-record-breaking size. This hurricane has also become one of the deadliest, with hundreds of deaths in six states left in Helene’s wake.
Although rapid attribution acknowledges that climate change played a significant role in Hurricane Helene, stating that "climate change may have caused up to 50% more rainfall during Hurricane Helene in some parts of Georgia and the Carolinas" increased rainfall does not necessarily translate to greater flood damage — provided asset managers take proactive measures to mitigate flood risk.
Devastation in the Aftermath
Images of Helene’s destruction reveal widespread flooding, toppled power lines, and businesses brought to a halt.
Floodwaters — both from coastal storm surge and inland rainfall — were the primary drivers of the damage. Freshwater floods inundated riverbanks, while debris such as boats and trees, dislodged by the storm, collided with properties, leaving entire neighbourhoods in ruin. The winds from Helene, coupled with tornadoes spawned by the hurricane, shattered windows, tore off roofs, and likely caused entire structures to collapse.
Helene’s indirect economic impact is equally severe.
Business disruptions due to power outages, blocked roads, and flooded supply routes hampered recovery efforts, further inflating the cost. Telecommunications outages, including cell phone and internet blackouts, were widespread, prompting President Joe Biden to deploy Starlink satellite internet equipment to support recovery efforts.
Long-Term Financial Fallout
The financial repercussions of Hurricane Helene will likely resonate for years.
Insurance premiums in affected areas, already surging due to recent storms, are expected to spike further, potentially rendering some properties uninsurable. Communities that saw significant outmigration in the wake of the storm may never fully recover as property values plummet and rebuilding becomes less attractive.
This raises a critical question: why are so many assets still exposed to such vulnerable areas without appropriate mitigation measures in place?
The lack of foresight and preparedness for such events continues to drive the escalating costs of climate-related disasters.
Mitigating Future Losses
While Helene’s damage is substantial, experts emphasise that stronger hurricanes do not necessarily equate to higher losses — if appropriate action is taken. Investors and property owners can take several steps to reduce future risks, especially in hurricane-prone regions from Texas to Maine.
Retrofitting buildings with water-resistant materials, elevating properties, and using stormproof construction techniques can significantly mitigate flood and wind damage.
Strengthening roof-wall and wall-foundation connections, while boarding up windows and doors, can provide critical protection during storms. However, the sheer force of hurricane winds, combined with the risk of airborne debris, makes it clear that some damage is inevitable.
The increasingly intense, though less frequent, hurricanes projected by climate models suggest that portfolio managers need to plan for scenarios ranging from mild tropical storms to catastrophic Category 5 events.
Looking Ahead
While Hurricane Helene may not have rivalled the destruction of Hurricane Katrina in 2005 or the power of Hurricane Michael in 2018, it served as a stark reminder of the evolving risks posed by climate change.
As the U.S. grapples with ever-stronger storms, reducing exposure to these climate risks will be crucial in safeguarding both assets and lives.
Climate X’s technology can help investors navigate these risks, offering insight into whether assets should be protected, retrofitted, or divested. With the frequency of tropical cyclones expected to decline, but their intensity likely to increase, businesses must be prepared for the next storm — whether it be another Helene or something far worse.