Tornadoes, Storms Wreak $700 Million Loss
NU Online News Service, May 23, 2:31 p.m. EST?Tornadoes and thunderstorms that ripped through 17 states and did their most damage in Midwest and Mid-Atlantic areas from April 27 to May 3 caused an estimated $700 million in insured property losses, ISO said today.
The calculation came from the Property Claim Services unit of the Insurance Services Office, Inc., based in Jersey City, N.J.
Tennessee and Virginia tied as worst-affected states, each sustaining $120 million in insured property damage, followed by Maryland at $115 million, ISO said.
Insurer losses from the tornado that smashed La Plata, Md. and leveled the center of the town of 5,800 people alone totaled nearly $25 million.
Kentucky, at $95 million, and Ohio, at $70 million, followed Tennessee, Virginia and Maryland in insured property losses, ISO said.
Homeowners and businesses reported more than 218,000 claims to insurers in Arkansas, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Missouri, Mississippi, North Carolina, New York, Ohio, Pennsylvania, Tennessee, Texas, Virginia and West Virginia.
ISO gave the claim breakdown for the five hardest-hit states as follows:
? Maryland--39,000.
? Tennessee--38,000.
? Kentucky--33,000.
? Virginia--28,000.
? Ohio--22,000.
ISO's PCS unit defines a catastrophe as an event within a particular territory that causes $25 million or more in insured property losses, and affects a significant number of property-casualty policyholders and insurers.
PCS estimates represent anticipated insured losses on an industrywide basis arising from catastrophes, reflecting the total net insurance payment for personal and commercial property lines covering fixed property, personal property, vehicles, boats, related property items and business-interruption losses. The estimates exclude loss-adjustment expenses.
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