Wash. 25-yr. Cold Snap Top-6 In State's Loss Record

NU Online News Service, Dec. 21, 2:04 p.m. EST

The early December cold snap in Washington state was among one of the most severe that state has suffered in the past 25 years in terms of insurance losses, according to Seattle-based insurer PEMCO.

PEMCO said early data from its PEMCO Storm Index suggests last week's cold snap will be among Washington State's top-six severe cold-weather events of the past 25 years, based on PEMCO claims of around $4.3 million projected to be paid.

The frigid temperatures that gripped the state from Dec. 7-13 prompted a rash of claims the insurer said should rank this event behind only five previous cold-weather events: snowstorms of Dec. 26-30, 1996 ($15.2 million); Dec. 18, 1990 ($7.5 million); Dec. 17-Jan. 10, 2009 ($7.1 million); Feb. 1-10, 1985 ($6.7 million); and Feb. 1, 1989 ($4.7 million).

Last week's freeze also could break into Washington's top-10 weather events of any kind, which includes major windstorms, the insurer added.

As of Dec. 15, PEMCO Insurance said it received 244 claims related to the cold weather, mostly for frozen and burst water pipes.

The insurer said cold-weather claims are continuing to trickle in but are expected to return to near normal by the end of the week. However, some claims might not be reported for weeks, with people on vacation and owners of second homes being unaware of damage until they return. Also, boats might have suffered freezing damage that won't be detected until spring.

PEMCO said it is the largest property and casualty insurer headquartered in Washington and insures only Washington residents. According to HighlineData, a subsidiary of Summit Business Media, which also owns National Underwriter, PEMCO is ranked the 7^th largest insurer in the state for all lines of business.

PEMCO said its storm index has tracked data since 1984 for claims related to snow, cold and windstorms, plus events like earthquakes, wildfires and heavy rain. It ranks these events based on the number of claims and gross paid loss amount, which is recalculated into inflation-adjusted dollars. Data for storms before 1984 is less comprehensive, the company noted.