FOR IMMEDIATE RELEASE
NEW YORK, February 12, 2014 —The
National Weather Service (NWS) is reporting a major winter storm will intensify tonight as it leaves the Southeast and moves up the Eastern Seaboard. Reporters with questions about insurance coverage can contact the
Insurance Information Institute (I.I.I.).
“Winter storms accounted for 7 percent of all insured catastrophe losses between 1993 and 2012, placing them third behind hurricanes and tropical storms and tornadoes as the costliest natural disasters,” said Dr. Robert Hartwig, the I.I.I.’s president and an economist. Hurricanes generate around 40 percent of all U.S. catastrophe losses, with tornadoes causing 36 percent, an
I.I.I. analysis of industry data found.
Insurers paid $27.8 billion in winter storm claims to policyholders over this same time period (1993-2012), on an inflation-adjusted basis, according to Property Claim Services (PCS), a division of Verisk Analytics.
The I.I.I. offers the following information on insurance coverage for winter storms, and has detailed
claims filing information, as well.
Auto Insurance Policies
- Property damage liability coverage pays for damage you, or someone driving the car with your permission, may cause to someone else’s property—if, for example, you should skid on an icy road and hit someone’s fence. It includes damage caused to lamp posts, telephone poles, fences, buildings or other structures.
- Collision, an optional coverage, pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes.
- Physical damage to a car caused by heavy wind, flooding, fallen ice, or tree limbs is covered under the optional comprehensive portion of an auto policy.
Homeowners Insurance Policies
- Damage to the house and its contents caused by weight of snow or ice that creates a collapse is covered under standard homeowners insurance policies.
- Melting snow that seeps into a home from the ground up is considered flooding and would be covered by flood insurance, which is provided by FEMA’s National Flood Insurance Program and a few private insurers. Federal flood insurance is available to both homeowners and renters. Flood damage is not covered by standard homeowners or renters insurance policies.
- Wind-related damage to a house, its roof, its contents and other insured structures on the property is covered under standard homeowners insurance policies. Wind-driven snow, sleet or rain that causes an opening in the roof or wall and enters through this opening is also covered.
- Tree limbs that fall on a house or other insured structure on the property would be covered for both the damage the tree inflicts on the house and the cost of removing the tree, generally up to about $500. Ice or other objects that fall on the home are also covered.
- Freezing conditions such as burst pipes or ice dams—a condition where water is unable to drain properly through the gutters and seeps into a house causing damage to ceilings and walls—is covered. There is generally a requirement, however, that the homeowner has taken steps to prevent these losses by keeping the house warm and maintaining pipes, drains and gutters.
RELATED LINKS
The I.I.I.’s free mobile apps can help you create a disaster plan, learn about selecting the right insurance for your needs and budget, and create and maintain a home inventory. Learn more about our suite of apps here.
The I.I.I. has a full library of educational videos on its You Tube Channel. Information about I.I.I. mobile apps can be found here.
THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.
Insurance Information Institute, 110 William Street, New York, NY 10038; (212) 346-5500;
www.iii.org