Insurance adjusters are already on their way to an area near Waco, Texas affected by an enormous blast at a fertilizer plant Wednesday night that sent a mushroom cloud into the sky.
According to the Insurance Council of Texas, as many as 75 homes, a middle school, a retirement center and an apartment complex were heavily damaged by the force of the explosion at the plant that left as many as 15 people dead and more than 150 injured in West, Texas, a small farming community.
ICT says insurance adjusters who live in the area are working with emergency responders to get into the affected area. Claims are beginning to mount, although there is no preliminary count or estimation of claims.
Joe Woods, vice president of state government relations for the Property Casualty Insurers Association of America (PCI) says insurers are, "committed to helping the families and business owners that have been affected and will be there to support the recovery every step of the way."
He says claims can be expected in the life, health and P&C sectors, but since authorities are still actively investigating and searching for survivors, "it is still too early know the full insurance implications of this event."
"Based on what we know at this point, there appears to be extensive property damage to homes, businesses and automobiles," Woods says. "Building owners may have property insurance to cover their damage and loss of rental income. They may also have business interruption coverage for lost income."
Injuries and property damage caused by plant explosion will be covered by P&C insurance, says the Insurance Information Institute. Workers injured by falling debris or burned as a result of the explosion will be covered by workers compensation for medical costs, rehabilitation and lost wages.
Residents living in area apartments will be covered by renters or condo/co-op insurance policies for damage to personal property. They will be covered for the cost of additional living expenses if their home is now unsafe to live in because of the disaster.
Damage to buildings and business property will be covered by commercial insurance. The comprehensive portion of an auto insurance policy will cover damages to vehicles.
Boutique litigation firm Powers Taylor released a statement saying this type of accident is "usually attributable to negligence on the part of plant workers or the failure to comply with safety procedures."
"If such negligence occurred, persons who have been injured or who have suffered property damage will have legal claims against West Fertilizer Company or against contractors or suppliers who contributed to causing the accident," says Powers Taylor.
Officials have not determined the cause of the explosion, but they do not believe that foul play was involved. It will take time for authorities to properly assess the full scope and severity of damage.
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