It cost a lot more to repair damage property in 2016, according to Xactware's 2016 U.S. Property Report. The company's XactAnalysis network processed almost 5 million property estimates last year, totaling $51.5 billion, a significant increase from the $39.6 billion handled in 2015.
The increases mirrored the catastrophe activity seen in April and May with hail, flooding, and tornado claims, as well as the damage in August, October, November and December from Hurricane Matthew, windstorms and thunderstorms. Property estimates reached a high of $5.5 billion in December.
The average cost of the property estimates reported to Xactware increased 12% from $9,233 in 2015 to $10,347 in 2016, due in large part to increases in construction costs and the frequency of catastrophes. The figures come from several sources including independent adjusters, specialty providers and contractors. The cost of the average property estimate from independent adjusters dropped by $466, while estimates from contractors increased by an average of $575.
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Patricia L. Harman
Patricia L. Harman is the editor-in-chief of Claims magazine, a contributing editor to PropertyCasualty360.com, and chairs the annual America's Claims Event (ACE), which focuses on providing claims professionals with cutting-edge education and networking opportunities. She covers auto, property & casualty, workers' compensation, fraud, risk and cybersecurity, and is a frequent speaker at insurance industry events. Contact her at [email protected]
