Whether it's hurricanes in the United States or flooding in South Asia, extreme weather events have increased in frequency and severity across the globe.
While 2017 is far from over and the data needed to calculate losses and trends remain incomplete, enough time has passed to reflect on extreme weather in 2016. That's just what LexisNexis Risk Solutions has done for the benefit of homeowners and carriers.
The 2017 LexisNexis Home Trends Report confirms that homeowners in Texas and Colorado suffered the greatest percentage of catastrophic losses due to extreme weather and other peril events in 2016. In 2016, all peril claim frequency increased slightly but was offset by a decline in severity. Catastrophe losses increased in 2016, mostly driven by wind and hail claims in Texas and Colorado.
The good news? All peril loss costs continued to trend downward in aggregate; compared with 2015, frequency remained steady while severity declined, according to the study.
Related: Top 10 ZIP codes for fire loss
|Weather events in Texas, Colorado
Texas saw the highest rate of catastrophe claims frequency and losses, while Colorado ranked third in claims frequency and second for losses. Combined, Texas and Colorado accounted for 48% percent of catastrophe losses in 2016.
Some of the most damaging hailstorms in Texas were recorded in the months of March and April, causing more than $4 billion in damage to thousands of homes. In particular, San Antonio and nearby Bexar County experienced softball-sized hail.
Wind claims made up 26% of overall claims in 2016. After five years of declining loss costs, 2016 saw higher loss costs due to wind claims — many of which were the result of Hurricane Matthew and severe thunderstorms. Tornadoes also contributed to the spike in claims, particularly in the Midwest, which had the top loss costs in aggregate from 2011 to 2016.
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Denny Jacob
Denny Jacob is an associate editor for NU PropertyCasualty360. Contact him at [email protected].
