June Produces Nearly $2 Billion in Insurance Losses Due To Severe Storms
Severe weather across the United States in June led to insured losses of almost $2 billion according to estimates from Aon Benfield. The weather events ranged from fires and hailstorms to flooding and a freak derecho that stretched a thousand miles and left over 1,113 reports of damaging winds and millions without power during a significant heat wave.
Aon Benfield, a global reinsurance intermediary, produced the report. Reinsurance is the business of insuring other insurance companies. It is standard practice for insurance companies to “reinsure,” that obtain insurance for their potential claims, to protect them from having all of their assets wiped out by a single, large-scale disaster.
The biggest Damage Claim? Hail
While much news coverage followed the destructive fires in Colorado Springs and High Park, and damage was estimated at over $350 million, the events that caused the greatest insurance loss were hailstorms.
One set of storms struck Colorado and Wyoming with strong winds, tornadoes and hail. In Colorado, snowplows were called out to clear up to eight inches of hail from roads. Hail up to golf-ball size contributed to more than 100,000 insurance claims and insured losses exceeding $700 million.
A few days later, a second thunderstorm complex hit the Dallas-Fort Worth area with golf-ball sized hail. Over 100,000 claims were reported and the damage was estimated at more than $1 billion.
Florida Hit by Debby
Near the end of the month, Florida was struck by Tropical Storm Debby, bringing days of monsoon-like rain, which caused widespread flooding and combined with a storm surge, killing seven people.
Insurers estimated more than 7,500 homes and businesses were damaged. Flooding occurred in Tallahassee, Jacksonville and Tampa, caused by rainfall of up to 26 inches during a four-day period. Damage estimates were in the $100 million range, but was expect to increase.
For Florida residents, this means your insurance premiums could very well rise, as these massive payouts force everyone to pay more. If you home has been damaged by the elements and your insurance company is refusing to pay, contact an experienced insurance claims attorney who can ensure that the insurer meets its obligations under the policy.