A quiet year for major catastrophes did not translate into fewerlosses for insurers, according to the Xactware 2014 PropertyReport.

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“Although 2014 was a quiet year for catastrophes overall, severeweather damage from wind, hail, lightning and tornadoes was at thefourth-highest level in history,” said Greg Pyne, Xactware’sassistant vice president of Pricing Data Services in a statement.“The trend of high damage from severe weather continued to troublethe industry in 2014.” Total insured losses due to thunderstormssaw the fourth highest number on record with $12.3 billion.

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The report tracks claims from events such as fires, waterdamage, hail and wind and highlights trends so insurers can seeareas of risk.

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According to the study, Xactware’s XactAnalysis networkprocessed 4,218,586 claims estimates valued at $38,569,780,316.Year-over-year, the January 2014 total of $3.02 billion forproperty estimates was over $270 million higher than the January2013 figure of $2.76 billion. The month seeing the most claimsactivity was June with a reported $4.44 billion in estimates. Julycame in second with 3.96 billion in property estimates, followed byOctober with $3.39 billion. The two months with the lowest estimatetotals were November with $2.28 billion and December with $2.46billion.

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The cost of the average fire loss continued its downward trend,dropping almost 9% from $45,268 in 2013 to $41,256 in 2014. Theaverage cost of a fire loss in 2012 was $46,374.

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The number of water losses increased from 865,043 in 2013 to1,208,297 and were the most common types of losses reported in2014. The average cost of a water loss claim dropped 4% from $6,360in 2013 to $6,089 in 2014.

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Hail damage estimates also continued to increase, growing byalmost 15.5% from 986,010 in 2013 to 1,173,099 in 2014, but theaverage cost of the estimates remained basically the same from yearto year.

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Xactimate tracks the losses from five primary sources:contractors, independent adjusters, mitigation providers, specialtyproviders and staff adjusters. The majority of the claims (65%)were compiled by staff adjusters (2,768,753), followed byindependent adjusters with 958,447 claims (22%). Contractors(255,077) and mitigation providers (235, 301) each only compiled 6%of the claims, and specialty providers (32,239) only 1%. Accordingto the study, the claims estimates did not include any reassignedestimates.

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The average price of the estimates for all of theseprofessionals dropped from 2014 to 2013. Specialty providers sawthe biggest drop in estimate costs going from $6,635 to $3,871, adrop of $2,764. Independent adjusters saw a $1,390 decrease intheir average estimates. Contractors and mitigation specialists sawminimal decreases.

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Fire losses uploaded by staff adjusters were the highestestimates with an average value of $46,363, but the number wasstill 10% lower than the 2013 figure of $52,012. Fire estimatesfrom independent adjusters averaged $41,565 per estimate, andcontractors submitted the lowest estimates at $22,713.

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Hail losses from specialty providers were the next highestestimates, running just over $20,000, almost twice as high as theestimates submitted by staff adjusters, independent adjusters andmitigation providers.

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Texas reported the highest number of personal property claimsvalued at $322.3 million, but California actually reported thehighest total value at $411.3 million. Colorado reported the mostpersonal property claims with five claims per 1,000 residents.Nebraska reported 4.36 per 1,000 residents; Washington, D.C. had3.62 and Maryland came in fourth with 3.35 per 1,000 residents.Florida residents were the least likely to file property claimswith only .53 per 1,000 residents.

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Jim Loveland, Xactware’s president and CEO said, “The propertyindustry continues to face rapidly changing conditions” and thereport “offers property professionals an edge by helping themidentify and respond to trends in 2014 that are likely to continueinto 2015 and subsequent years.”

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