NU Online News Service, July 5, 3:06 p.m. EDT
Insurance companies have paid more than $509 million on nearly 15,000 residential, personal and commercial claims filed after the Joplin, Mo. tornado May 22.
John M. Huff, director of the Missouri Department of Insurance, says the EF-5 twister “will be the largest insurance event in Missouri history.”
“This is half a billion dollars already reinvested into the local economy, and we expect it to be three to four times that amount by the times all claims are settled,” he adds.
Though Huff’s office has received a “steady stream of consumer complaints,” the industry’s response “has been commendable,” says a statement.
About $311.7 million has been paid on more than 7,000 homeowners’ claims. A thousand more claims are expected, according to reports to the insurance department from insurers. About $157.8 million has been paid to settle about 1,530 commercial property claims. Insurers also doled out $34.2 million for personal auto claims and $1.8 million for commercial auto claims, the department says.
Catastrophe risk modeler AIR Worldwide says thunderstorms in the U.S. from May 20 to May 27 are expected to cause between $4 billion and $7 billion in insured losses.
Though Missouri was the hardest hit by storms during this period, 20 states were impacted from Texas to the East Coast.
Modeler Eqecat says insured losses for the Joplin, Mo. tornado—the deadliest twister in more than 60 years—could be between $1 billion and $3 billion. City officials say more than 150 people died from the tornado.
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