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Weather-related insurance losses skyrocket

Posted On Tue, July 24, 2012

A report from Aon Benfield showed that June experienced several severe weather disasters, which cost approximately $2 billion in insurance losses.

The firm's Global Catastrophe Recap report showed that a major hail storm in Texas and New Mexico caused significant damage. The Insurance Council of Texas estimated that the damage in the Lone Star State will cost approximately $1 billion. In addition, another major hail storm cost $700 million in Colorado and Wyoming.

The derecho storm that affected the eastern part of the country killed several people and produced more than 50,000 claims, the report explained. Colorado dealt with two major wildfires during June, with the Waldo Canyon Fire burning close to 350 homes worth $110.2 million. Another 50 homes also experienced significant damage. The High Park Fire took more than 250 homes, as well.

"The Colorado wildfires proved to be the two most damaging fires in state history, and also two of the costliest," said Steve Jakubowski, Impact Forecasting's president. "Impact Forecasting is the only firm to have developed a brushfire catastrophe model for the western states in the U.S., which allows us to provide detailed feedback to our clients following events such as these, giving them confidence that their exposures are being fully identified and quantified."

Aon Benfield added that Tropical Storm Debby flooded thousands of homes and other properties in Florida, and the total damage is expected to be around $100 million.

If a homeowner is in an area that frequently experiences severe weather, it is important for them to have a home insurance policy that is up-to-date. Comparing the current plan with a group of home insurance quotes may help accomplish this, as there could be other options with stronger terms.

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