Calif. Storms Spur Over 14,000 Claims
By Michael Ha
NU Online News Service, Jan. 14, 4:02 p.m. EST?The California storm systems that hit the southern parts of the state with flooding, mudslides and snowfalls has been declared a catastrophe?meaning at least $25 million in expected insured losses?by the Insurance Service Office Inc.[@@]
According to the Property Claims Services, a unit of Jersey City, N.J.-based ISO, the eventual insured loss could far exceed the $25 million catastrophe-event threshold, which already excludes flood coverage and National Flood Insurance Program insured by the Federal Emergency Management Administration.
ISO spokesman Chris Guidette said that while his firm doesn't yet have a hard estimate of insured losses, he observed that going back to 1997, similar storm systems in the region produced losses of $45 million and $160 million.
So far, the Insurance Information Institute of California, in Sacramento, Calif., has been checking with major writers in the state and has come up with a total of 14,000 claims thus far, Mr. Guidette said.
The storm systems have primarily affected Los Angeles County, Orange County and Ventura County, as well as parts of Nevada.
The insured losses so far can be separated into four broad categories of claims, according to ISO:
? One major cause of losses involves windstorms knocking down fences and trees and then hitting homes or electrical wires.
? Insurers are finding a large number of claims for flood damage to automobiles. Autos that have comprehensive coverage are covered for flood damage.
? Another major loss cause is "snow-load," involving heavy-falling snow leading to collapsed porches, gazebos and other outdoor structures.
? Insurers are also seeing claims from ice-damning, where water collects on shingles on roofs, freezes, gets under the shingles, and then thaws out when the weather warms up. This can cause leakage through the ceiling and onto the walls, causing damage to homes.
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