Windstorm Loss Estimates Released

Numerous insurers reported substantial losses stemming from Ohio's Feb. 11-12, 2009 windstorm as well as the Ike-related gusts, and some preliminary figures are now in.

According to initial estimates from the Ohio Insurance Institute (OII), the Feb. windstorm caused at least $88.9 million in damages. Unseasonably warm air combined with an approaching cold front across the Ohio Valley set the stage for 50- to 60-mph wind gusts in various swaths of the state. Darke County, Ohio registered the fiercest gust at 76 mph, according to the National Weather Service, and a series of complex storms near Cincinnati produced marginally severe hail.

OII's loss survey indicated that although February's losses were substantial, they paled in comparison to Ohio's damage caused by Ike six months ago. Losses reported by the 22 P&C insurers that participated in the Feb. windstorm study varied from a low of $35,000 to over $17.3 million, with estimates ranging from 5 to over 6,958 claims. The most commonly reported homeowners' losses were damage to roofs, siding, windows, and walls from fallen trees and limbs.

Even though Texas sustained the brunt of Ike's fury, eight other states -- Ohio included -- were visibly affected by the hurricane's aftermath. OII also resurveyed insured losses from the Sept. 14, 2008 Ike-related windstorm, and the "dry hurricane" was deemed largest Ohio natural disaster in recent times from an insured loss standpoint.

Based on the OII resurvey of the Sept. windstorm, insured losses rose from $553.1 million to over $721.4 million from figures reported by the 28 participating insurers. This is a 30-percent increase from the initial losses reported in October 2008.

"The number of claims grew 70 percent from 135,317 to 230, 163," said OII President Daniel J. Kelso. "We recognized early on that this event had the potential to rival the Xenia tornado outbreak of 1974 in terms of losses because of widespread damage."

According to Property Claim Services (PCS), about 270,000 Ohio claims totaling $1.135 billion are expected from Ike, which represents a new state record. Comprising this total are 220,000 homeowners', 30,000 commercial, and 20,000 auto insurance claims. OII said it expects the total statewide damage figures to rise. The $1.135 billion figure doesn't include state and federal government damage assessments. The Ohio EMA and Federal Emergency Management Agency are responsible for county assessments that include costs incurred by local government for protection and clean up. These total $36 million to date.

Texas losses are currently estimated at $9 billion. OII resurvey figures represent 85 percent of Property Claim Services' Ohio claims and about 64 percent of the total insured loss picture. OII reports that an average of 95 percent of the Ike windstorm claims in Ohio have been closed, most within 10 to 90 days, and well before March 14, the six-month anniversary of this costly natural disaster.

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