Tornadoes, Storms Wreak $700 Million Loss

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NU Online News Service, May 23, 2:31 p.m.EST?Tornadoes and thunderstorms that ripped through 17states and did their most damage in Midwest and Mid-Atlantic areasfrom April 27 to May 3 caused an estimated $700 million in insuredproperty losses, ISO said today.

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The calculation came from the Property Claim Services unit ofthe Insurance Services Office, Inc., based in Jersey City, N.J.

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Tennessee and Virginia tied as worst-affected states, eachsustaining $120 million in insured property damage, followed byMaryland at $115 million, ISO said.

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Insurer losses from the tornado that smashed La Plata, Md. andleveled the center of the town of 5,800 people alone totaled nearly$25 million.

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Kentucky, at $95 million, and Ohio, at $70 million, followedTennessee, Virginia and Maryland in insured property losses, ISOsaid.

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Homeowners and businesses reported more than 218,000 claims toinsurers in Arkansas, Georgia, Illinois, Indiana, Kansas, Kentucky,Maryland, Missouri, Mississippi, North Carolina, New York, Ohio,Pennsylvania, Tennessee, Texas, Virginia and West Virginia.

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ISO gave the claim breakdown for the five hardest-hit states asfollows:

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? Maryland--39,000.

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? Tennessee--38,000.

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? Kentucky--33,000.

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? Virginia--28,000.

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? Ohio--22,000.

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ISO's PCS unit defines a catastrophe as an event within aparticular territory that causes $25 million or more in insuredproperty losses, and affects a significant number ofproperty-casualty policyholders and insurers.

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PCS estimates represent anticipated insured losses on anindustrywide basis arising from catastrophes, reflecting the totalnet insurance payment for personal and commercial property linescovering fixed property, personal property, vehicles, boats,related property items and business-interruption losses. Theestimates exclude loss-adjustment expenses.

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