April CAT Storm Insured Loss Put At $1.2 Billion

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 10 states with heavy snow, high winds and other severe conditions will cost insurers an estimated $1.2 billion for property-loss claims Insurance Services Office Inc. said.

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

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

Hardest hit was Texas, sustaining $885 million in insured property losses from an estimated 285,000 claims. Wind gusts exceeding 80 miles an hour and baseball-sized hail shelled several Texas 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 $25 million or more in insured property losses and affects a significant number of policyholders and insurers.

PCS estimates represent anticipated insured loss on an industrywide basis arising from catastrophes, reflecting the total net insurance payment for personal and commercial property lines of insurance covering fixed property, personal property, vehicles, boats, related property items, business interruption and additional living expenses. The estimates exclude loss adjustment expenses.