Edmonds: The top claims related to winter storms include: water due to water leaks; fire typically caused by fireplaces or space heaters; wind such as damage to roofs and siding; and freeze often due to frozen pipes. We know that claims from January 2014 were 3% higher than in July 2013 and that freeze claims increased off the charts and water-related losses were up 23% in January.

PC360: Why do property claims outweigh auto claims in these events?

Edmonds: First, what you typically see is property claims increasing in numbers during a winter storm ahead of auto claims because government officials advise or mandate that motorists stay off the road until the weather passes. In this case, you’ll have expensive claims and damage from fire or roof damage. Later, when drivers are back on the roads impacted by black ice or frozen roads from melting and refreezing you see an increase in auto claims.

PC360: How can carriers prepare to receive these claims?

Edmonds: First is about rate. U.S. insurers have spent more time preparing than ever before, taking rate over the last several years to turn their profitability around. In 2013, they reached combined ratios of 98, which was only one of approximately four years since 1990 the industry had been under 100. Second, they need to ensure the rates they’ve chosen are proper for each customer, that their portfolios are adequately priced and that they’ve expanded peril models in order to make sure the correct premium is in place. In this case, it appears that they are asking how can their claims departments be ready to handle all the additional claims.

PC360: What steps can policyholders take to avoid winter storm damage?

Edmonds: Policyholders can do things like making sure the trees around their homes are trimmed and healthy. They can wrap exterior pipes and drip faucets ahead of freezing weather and take extra precautions to ensure safety around their space heaters and fireplaces. If possible, park their vehicle away from the street. They can prepare to work from home if possible and stay off the road during a winter storm.

PC360: How can agents help their clients prepare for winter storms? What tips should agents pass on?

Edmonds: Agents should have annual policy reviews with their clients in order to review coverages and deductibles. Agents can also give their customers a homeowner’s checklist for making homes winter ready and recommend sites like Ready.gov, which has a list of what should be assembled in an emergency car kit.