Carrabelle, Florida, faces a significant hurricane risk due to its close proximity to the Gulf Coast and its relatively low elevation. Most of the city lies less than 20 feet above sea level, making it highly susceptible to flood risks, including those from storm surges. The storm surge potential is notably high due to its geographic position on the coastline; being situated on the bend of the panhandle can lead to amplified surges as wind and water are funneled into the Apalachicola Bay during a storm event. For example, during Hurricane Dennis in 2005, Carrabelle experienced a surge that was much higher than initially predicted, causing extensive flooding.

Over the past 30 years, Carrabelle has been impacted by several major hurricanes. Hurricane Michael, a Category 5 storm in 2018, devastated the Florida Panhandle and resulted in significant damage in Carrabelle. The most catastrophic flood event in recent history took place in 1993 during the "Storm of the Century", which resulted in severe flood damage across the region. These examples demonstrate Carrabelle's vulnerability to both high wind events and severe flooding caused by hurricanes. Thus, it is crucial for residents to have both wind and flood insurance, and to heed evacuation orders in a timely manner when future hurricanes threaten the area.