Quick Response

Insurers Moving Quickly in Response to Violent Midwest Weather

May 24, 2011

Auto, home and business insurers have launched a broad response to the recent tornadoes that caused severe loss of life and extensive property damage in Joplin, Mo., Reading, Kan., and Minneapolis, Minn., insurance industry sources say.

More than 68 tornadoes were reported across the Midwest over the weekend.

Jim Whittle, assistant general counsel and chief claims counsel of the American Insurance Association (AIA), said property and casualty insurers are already actively engaged in helping policyholders recover from these natural catastrophes.

The mobilization comes only weeks after insurers traveled to multiple states, most notably Alabama, which were struck by tornadoes in late April, the Insurance Information Institute said.

“The spring of 2011’s tornadoes have been some of the costliest, and deadliest, in U.S. history,” Dr. Robert Hartwig, an economist and president of the I.I.I.

The U.S. generally sees about 1,200 tornadoes in any given year but a preliminary count indicates 1,076 have already touched down nationwide as of May 17, 2011, with 875 of them occurring in April 2011, the National Oceanic and Atmospheric Administration’s (NOAA) National Weather Service reported.

This is already the second deadliest year ever for tornado-related deaths in the U.S. – with about 450 fatalities so far, according to the I.I.I.
Tornadoes killed 747 people in the U.S. in 1925. Tornadoes caused $97.8 billion in insured losses in the U.S. between 1990 and 2009, making these weather events second only to hurricanes ($152.4 billion) over this same time period as the costliest natural disasters.
In the past three years (2008-2010), severe thunderstorms, and the tornadoes they spawned, have caused about $30 billion of that $97.8 billion total, the I.I.I. said.
The April 22-28, 2011 southern state tornadoes caused anywhere from $3.7 billion to $5.5 billion in insured losses, AIR Worldwide, a risk modeling firm, estimated. Risk Management Solutions, another risk modeling company, said the total insured loss figure could climb as high as $6 billion, with the damage so severe in Alabama that the tornadoes could surpass 2004’s Hurricane Ivan as the costliest natural disaster in that state’s history.
In response to the most recent round of storms, insurance companies “are already at work reaching out to policyholders,” AIA’s Whittle said. “Our members are actively communicating with policyholders, even using Facebook and Twitter to post information that will help their customers quickly file claims.”

Policyholders are urged to immediately contact their insurer to report damage and begin the claim filing process.
A list of AIA member companies’ claims hotline numbers may be accessed on AIA’s Web site at: http://www.aiadc.org/AIAdotNET/docHandler.aspx?DocID=285568.

from the Insurance Journal: http://www.insurancejournal.com/news/midwest/2011/05/24/199840.htm?print

Good Friday Twister Spins 7000 Claims Here

Jefferson City, Mo. - The major homeowners and auto insurance companies in Missouri have received nearly 7,000 claims from St. Louis residents with damage from the Good Friday tornado. The companies reported their claims to the Missouri Department of Insurance, which released these noteworthy findings today:

•Total claims: 6,975

•Homeowners insurance claims: 4,490

•Auto insurance claims: 2,245

•Commercial property claims: 240

•Buildings with large or total losses: 137

One insurer reported nearly 2,500 claims, while another reported nearly 1,800. The data comes from insurance companies in Missouri that make up more than 85 percent of the homeowners insurance market.

"Missouri consumers and insurers have acted quickly to assess property damage and get claims filed," said John M. Huff, director of the Missouri Department of Insurance. "Our department will continue to monitor developments to make sure that consumers are receiving their benefits they're due under their insurance policies."

On Saturday, the department posted resources for storm victims on its website, including consumer tips and toll-free claims numbers for 18 of the major insurance companies in Missouri. The site also lists the addresses of mobile claims command units of five companies, which welcome walk-ins. Other companies have command units, but request that policyholders call to set up an appointment at the command center.
Huff says his biggest concern now is unscrupulous contractors who often prey on homeowners during a time of dire need. Advice for dealing with repair companies is also available from the department's online resources page and includes:
•Don't let contractors inspect your home if you're not watching. Some unscrupulous workers will cause damage to drive up the repair cost, and your insurance company will likely not cover the additional damage.

•Once your claim is processed, get estimates from contractors or auto repair shops known to you or recommended by someone you trust. Be suspicious of solicitors who offer to do repairs for you. You can also check a company's complaint history with the Attorney General's Office or Better Business Bureau.

•Don't pay the whole repair bill in advance. Pay in full only when the work is completed according to your agreement.

Consumers can file complaints or ask general questions about insurance by contacting the Missouri Department of Insurance at insurance.mo.gov or calling the Insurance Consumer Hotline at 800-726-7390.

from the MO Dept of Insurance