Insurers Respond to Texas Tornadoes; Insurance Claims Process Underway

FOR IMMEDIATE RELEASE
New York Press Office: (212) 346-5500; media@iii.org
Florida Press Office: (813) 480-6446; lynnem@iii.org

 NEW YORK, December 28, 2015 — The Insurance Information Institute (I.I.I.) has subject matter experts available to discuss the insurance claims process and economic impact of the series of tornadoes that struck Texas over the weekend. The I.I.I. can help Texans affected by the storms understand what to expect and how to expedite their insurance claims to get on the path to rebuilding their homes.

The I.I.I.’s Catastrophe Response Director, Lynne McChristian, will be available in the Dallas area beginning Tuesday afternoon, December 29. She can be interviewed onsite, via telephone (813-480-6446), in-studio and by phone or Skype. Her email address is lynnem@iii.org.

The I.I.I.’s Elianne González is also available for Spanish-language media interviews. She is based in Miami and can be reached at 954-389-9517; her email address is elianneg@iii.org.

Homeowners, renters and business owners with storm damage should immediately contact their insurance professional to report the damage and find out the terms under which it is covered.

“After a homeowner offers an initial description of the damage to their insurer, an important first question to ask is the amount of the deductible,” said Lynne McChristian. The deductible is the amount of the loss a property owner agrees to pay before insurance kicks in; this amount is typically subtracted from the claims payment. “You will also want to ask how long it will take to process your claim and whether you’ll need to obtain estimates for repairs,” said McChristian.

Standard homeowners policies cover damage caused by tornadoes, including wind damage to the structure itself and its contents. Homeowners policies also provide for additional living expenses to pay the costs of living away from home if a house is uninhabitable due to damage from an insured disaster.

If you own a business that has been damaged, property insurance will provide coverage for equipment and inventory. Business income (also known as business interruption) insurance replaces lost revenue in the event that your business has to shut down due to wind damage. This includes additional operating expenses that may result, such as operating out of a temporary location until repairs are made.

Damage to cars from a tornado, including trees and limbs, is covered under the optional comprehensive portion of a standard auto insurance policy.

The United States experiences more tornadoes than any other country, according to a 2013 report by Lloyd’s of London. Tornadoes accounted for 39.1 percent of insured catastrophe losses from 1995 to 2014, according to Verisk’s Property Claim Services (PCS). In 2014 insured losses from U.S. tornadoes/thunderstorms totaled $12.3 billion, up from $10.3 billion in 2013. 2014 losses were the fourth highest annual total on record, according to Munich Re.

The National Oceanic and Atmospheric Administration notes that tornadoes can happen any time of year. The costliest U.S. catastrophe involving tornadoes, based on insured losses, occurred in April 2011. It hit Tuscaloosa, Alabama, and other areas, and cost $7.7 billion in insured damages (in 2014 dollars).

RELATED LINKS

Facts and Statistics: Tornadoes and Thunderstorms

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