Tag Archives: Hail

Hail Claims Add Up During April

We’re reading about the economic and insurance impact of severe thunderstorms in the United States in April 2015, as reported by Aon Benfield’s latest Global Catastrophe Recap report.

Five separate thunderstorm events in central and eastern parts of the U.S. caused expected insured losses of $2 billion, including more than $750 million from one event alone.

What was the $750 million event?

A widespread multi-day severe weather outbreak that hit central and eastern parts of the U.S. from April 7-10, leaving at least 3 dead and dozens injured.

Major damage was noted across the Plains, Midwest and the Mississippi Valley following 25 confirmed tornado touchdowns, grapefruit-sized hail, damaging straight-line winds, and flooding rains, according to Aon.

The April 9 EF4 tornado that devastated the communities of Fairdale and Rochelle, Illinois, is part of this event.

Total economic losses were estimated at $1 billion, while insurers put losses beyond $750 million.

Interestingly, Aon notes that much of the insured losses in this severe weather event were driven by claims resulting from hail.

The Insurance Information Institute (I.I.I.) has some useful facts and statistics on hail here.

It cites ISO figures that indicate events involving wind, hail or flood accounted for $16.1 billion in insured catastrophe losses in 2013 dollars from 1994 to 2013 (not including payouts from the National Flood Insurance Program).

The I.I.I. also notes that there were 5,536 major hail storms in 2014, per statistics culled from NOAA’s Severe Storm database. Nebraska had the largest number of severe hail events in 2014, followed by Texas, Kansas, Iowa and Missouri.

Over the 14 years from 2000 to 2013, U.S. insurers paid almost 9 million claims for hail losses, totaling more than $54 billion, according to a recent report by Verisk Insurance Solutions. That’s a hail of an impact.

All Hail the Data

A report from the National Insurance Crime Bureau (NICB) has revealed that insurance claims resulting from hailstorm damage in the United States increased by a whopping 84 percent from 2010 to 2012.

In 2010, there were 467,602 hail damage claims filed, but by 2012 that number had  jumped  to 861,597.

All told, over two million hail damage claims were processed from January 1, 2010 to December 31, 2012, the NICB said.

Perhaps not surprisingly the top five states generating hail damage claims during this period were Texas (320,823); Missouri (138,857); Kansas (126,490); Colorado (118,118) and Oklahoma (114,168).

“Personal Property Homeowners† (PPHO) was the policy type most affected by hail loss claims, with 1.3 million, or 64 percent of the total number of hail loss claims between 2010 and 2012.

On average, PPHO policies were represented more than twice as often as the next most popular policy type, personal automobile.

NICB points out that most of the hail loss claims occurred in the spring and summer months, between March and July, likely due to increased numbers of thunderstorms during this period.

So far, large hail reports posted to NOAA’s National Weather Service Storm Prediction Center site in 2013 appear to show that hailstorm activity is down from 2012. See below:

 

While the NICB report focuses just on hail claims, it’s worth adding that severe thunderstorms in the U.S., including tornadoes, resulted in $14.9 billion in insured losses in 2012, more than $25 billion in insured losses in 2011, and $9.5 billion in insured losses in 2010, according to Munich Re.

In the first-half of 2013, insured losses from thunderstorm events exceeded $6 billion, Munich Re said.

Texas Tornadoes and Hail

As well as strong winds and heavy rains, hail – ranging from pea to baseball size – was a feature of the massive tornadoes that touched down in the Dallas Fort Worth area yesterday.

Specifically, the Dallas-Fort Worth international airport reported that more than 100 aircraft were damaged by hail, according to CNN.

Hail causes about $1 billion in damage to crops and property each year, according to the National Oceanic Atmospheric Administration (NOAA).

Pea size hail measures an estimated  ¼ inch in diameter, while baseball size hail would measure about 2  ¾ inches.

The Insurance Information Institute (I.I.I.) reminds us that hail damage is covered under standard homeowners insurance. It is also covered under your auto policy provided you have comprehensive coverage.

Some insurers may have special deductibles in hail prone areas, to help keep insurance premiums at affordable levels.

Physical damage to aircraft as a result of hail would be covered under a hull insurance policy.

The I.I.I. reports there were over 9,000 major hail storms in 2010, according to statistics from NOAA’s Severe Storms database. Texas had the largest number of severe hail events in 2010, followed by Kansas, Missouri, Nebraska and Oklahoma.

Learn  how  to protect your home from hail in this I.I.I. video: