Fact file: Virginia hurricane insurance

September 2018

  • Virginia was one of over a dozen states impacted by Hurricane Sandy in October 2012. Sandy caused $18.75 billion in U.S. property losses, excluding flood insurance claims covered by the federal flood insurance program, according to estimates from ISO’s PCS unit. This would make Sandy the fourth most costly U.S. hurricane, after hurricanes Katrina, Maria and Andrew.
  • Sandy resulted in $295 million in private insurance claims in Virginia. 
  • Three of the costliest hurricanes to hit the U.S., based on insured property losses, caused damage in Virginia: Hurricane Sandy in 2012, Hurricane Ivan in 2004, and Hurricane Hugo in 1989. (See chart below.)
  • Virginia was one of 14 states affected by August 2011’s Hurricane Irene, the first hurricane to hit the U.S. since Hurricane Ike in 2008. Irene impacted 14 states, causing a total of $4.3 billion in insured property damage, according to ISO, not including flood losses covered under the National Flood Insurance Program (NFIP). The NFIP puts its claims payouts from Irene at $1.3 billion (in all states).
  • There were 103,941 flood insurance policies in Virginia in 2016. Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the National Flood Insurance Program.
  • The Virginia Property Insurance Association was formed in 1968 to provide dwelling and commercial property coverages to individuals and businesses throughout the state who are unable to obtain coverage through the voluntary insurance market. The plan had 31,339 policies with an exposure of $4.4 billion in fiscal year 2017.
  • The insured value of properties in coastal areas of Virginia totaled $199 billion in 2015, according to an analysis by AIR Worldwide, accounting for 10 percent of the state’s total insured property exposure.
  • Between 27,000 and 409,000 single-family homes are at risk of damage from storm surge in Virginia, according to CoreLogic.  In terms of reconstruction costs, storm surge damage would range from $6.9 billion to $95.1 billion.  The ranges reflect the intensity of hurricanes, with the lower range corresponding to a weak hurricane and the highest range reflecting damage from a rare Category 5 hurricane.

Top 10 Writers Of Commercial Insurance In Virginia By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $355,056 6.2%
2 Liberty Mutual 303,907 5.3
3 Chubb Ltd. 295,394 5.1
4 American International Group (AIG) 281,424 4.9
5 Zurich Insurance Group 278,049 4.8
6 Erie Insurance Group 248,733 4.3
7 Nationwide Mutual Group 222,995 3.9
8 Hartford Financial Services 221,292 3.8
9 CNA Financial Corp. 201,052 3.5
10 Cincinnati Financial Corp. 129,913 2.3

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Homeowners Insurance In Virginia By Direct Premiums Written, 2017 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $397,790 17.9%
2 USAA Insurance Group 376,974 17.0
3 Allstate Corp. 200,018 9.0
4 Travelers Companies Inc. 194,064 8.7
5 Nationwide Mutual Group 177,008 8.0
6 Liberty Mutual 127,587 5.7
7 Erie Insurance Group 125,421 5.6
8 American Family Insurance Group 63,029 2.8
9 Farmers Insurance Group of Companies (2) 50,977 2.3
10 VA Farm Bureau Federation 47,029 2.1

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Private Passenger Auto Insurance In Virginia By Direct Premiums Written, 2017 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $979,950 18.0%
2 State Farm  923,989 17.0
3 USAA Insurance Group 717,325 13.2
4 Allstate Corp. 523,325 9.6
5 Progressive  492,052 9.0
6 Nationwide Mutual Group 426,052 7.8
7 Erie Insurance Group 205,964 3.8
8 Liberty Mutual 154,405 2.8
9 Travelers Companies Inc. 120,565 2.2
10 VA Farm Bureau Federation 115,612 2.1

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Costliest Hurricanes In The United States (1)

($ millions)

        Estimated insured losses (2)
Rank Date Location Hurricane Dollars when
occurred
In 2017
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $50,751
2 Sep.19-22, 2017 PR, UV Hurrican Maria (3) (3)
3 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 24,852
4 Sep. 6-12, 2017 AL, FL, GA, NC, PR, SC, UV Hurricane Irma (3) (3)
5 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH, NJ, NY, OH, PA, RI, VA, VT, WV Hurricane Sandy 18,750 20,240
6 Aug. 25-Sep. 1, 2017 AL, LA, MS, NC, TN, TX Hurricane Harvey (3) (3)
7 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 14,311
8 Oct. 24, 2005 FL Hurricane Wilma 10,300 12,719
9 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,518
10 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ, NY, OH, PA, TN, VA, WV Hurricane Ivan 7,110 9,053
8 Sep. 17-22, 1989 GA, NC, PR, SC, UV, VA Hurricane Hugo 4,195 7,378
9 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Hurricane Rita 5,627 6,949
10 Sep. 3-9, 2004 FL, GA, NC, NY, SC Hurricane Frances 4,595 5,851

(1) Property coverage only. Does not include flood damage covered by the federally administered National Flood Insurance Program.
(2) Adjusted for inflation through 2017 by the Insurance Information Institute using the GDP implicit price deflator.
(3) Loss estimate not yet available from PCS, but a relative ranking is provided.

Source: The Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company, U.S. Bureau of Economic Analysis.

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Top 10 States, By Population Change In Coastal Counties, 1960-2010

  By number change    By percent change 
Rank State Number change Rank State Percent change
1 California 13,130,000 1 Florida 270.1%
2 Florida 10,360,000 2 Alaska 239.8
3 Texas 3,732,000 3 New Hampshire 198.0
4 Washington 2,578,000 4 Texas 161.9
5 Virginia 1,903,000 5 Virginia 150.8
6 New York 1,400,000 6 Washington 144.4
7 New Jersey 1,275,000 7 South Carolina 125.1
8 Maryland 938,000 8 Hawaii 115.2
9 Massachusetts 826,000 9 North Carolina 114.4
10 Hawaii 728,000 10 California 107.2

Source: U.S. Department of Commerce, Census Bureau (www.census.gov/dataviz/visualizations/039/508.php).

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Estimated Value Of Insured Coastal Properties Vulnerable To Hurricanes By State, 2015 (1)

($ billions)

Rank State Commercial Residential Total Coastal Total exposure (2) Coastal as a percent of total
1 New York  $2,093 $1,272 $3,365 $5,571 68%
2 Florida  1,483 1,718 3,200 4,058 79
3 Virginia  92 106 1,993 2,078 10
4 Texas  725 638 1,363 5,358 28
5 Massachusetts  441 511 953 1,765 54
6 New Jersey  373 422 795 2,453 32
7 Connecticut  290 385 675 1,025 64
8 Louisiana  182 147 329 896 38
9 South Carolina  112 126 239 931 26
10 Maine  73 111 184 321 53
11 North Carolina  69 109 178 2,014 8
12 Alabama  63 65 128 1,014 13
13 Georgia  53 56 109 2,171 5
14 Delaware  34 59 93 241 29
15 New Hampshire  32 42 74 328 23
16 Mississippi  36 35 71 527 14
17 Rhode Island  25 46 71 241 22
18 Maryland  8 10 18 1,476 1
  All states above  $6,184 $5,858 $13,838 $32,468 38%
  Total, United States $6,184 $5,858 $13,838 NA 16%

(1) Includes residential and commercial Gulf and East Coast properties, as of December 31, 2015. Ranked by value of total insured coastal property.
(2) Total exposure is an estimate of the actual total value of all property in the state that is insured or can be insured, including the full replacement value of structures and their contents, additional living expenses and the time value of business interruption coverage.

NA=Data not available.

Source: AIR Worldwide.

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Other Resources

I.I.I. Facts & Stats: Flood Insurance

I.I.I. Facts & Stats: Hurricanes

I.I.I. Issues Updates: Catastrophes

I.I.I. Issues Updates: Hurricane and Windstorm Deductibles

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