April CAT Storm Insured Loss Put At $1.2 Billion

NU Online News Service, April 25, 11:53 a.m.EST--The early April weather catastrophe that clouted 10states with heavy snow, high winds and other severe conditions willcost insurers an estimated $1.2 billion for property-loss claimsInsurance Services Office Inc. said.

ISO in Jersey City, N.J. said the figure is based on preliminaryestimates from its Property Claim Services unit.

According to PCS, insurers will receive more than 386,000 claimsfrom auto, residential and commercial policyholders who wereaffected by ice, snow, freezing rain, wind, hail, tornadoes andflooding from April 4-8.

Hardest hit was Texas, sustaining $885 million in insuredproperty losses from an estimated 285,000 claims. Wind gustsexceeding 80 miles an hour and baseball-sized hail shelled severalTexas counties along the path of the thunderstorm, PCS said.

Missouri insured losses were the second highest at $110 million,according to PCS.

A catastrophe is defined by PCS as an event that causes $25million or more in insured property losses and affects asignificant number of policyholders and insurers.

PCS estimates represent anticipated insured loss on anindustrywide basis arising from catastrophes, reflecting the totalnet insurance payment for personal and commercial property lines ofinsurance covering fixed property, personal property, vehicles,boats, related property items, business interruption and additionalliving expenses. The estimates exclude loss adjustmentexpenses.