Driven by Winter Storm Elliott, freeze claims jumped 428%
December 2022 through January 2023 saw an increase in every type of loss associated with winter storms compared to the previous year, according to a report from Verisk.
December 2022 through January 2023 saw an increase in every type of loss associated with winter storms compared to the previous year, according to a recent Special Weather Report from Verisk. Freeze claims in particular increased by a staggering 428% during this period, followed by flood (+150%), collapse (+40%) and water (+26%) claims.
The biggest jump in freeze claims occurred in states east of the Rockies, and southern, typically warm states saw the highest increases. The RCV of freeze claims was also higher during the December 2022 to January 2023 period than in previous years for both residential and commercial claims.
A catalyst for many of these winter-related claims was Winter Storm Elliott – a “once-in-a-generation” weather event that roared across the eastern United States December 21 through 25, 2022 – which caused an estimated $5.4 billion in insured losses across 42 states, according to Karen Clark & Co.
The human cost of this storm was high as well, with The Weather Channel reporting at least 69 people died due to the storm – 39 of those in Buffalo, New York alone, where over four feet of snow trapped people in vehicles and homes.
Verisk’s report shows the uptick in winter claims from December 2022 to January 2023 came alongside a significant increase in line-item quantities of building materials that were more pronounced than expected, which suggests these claims were impacting more rooms and might be more severe.
The report states: “According to XactAnalysis industry trend data, the 5 line item categories that experienced the biggest increase in usage between Jan 2022 and Jan 2023 experienced an average price increase of 9.25% between that same time (drywall – 12.73%, paint – 10.50%, wood floor – 6.96%, carpeting – 6.85%, water mitigation – 9.19%), compared to an increase of 7.47% for the overall basket of goods material index for that same timeframe. This suggests that these materials commanded a higher than average premium due to their higher demand than other building materials.”
In addition to property damage, Elliott also caused power outages, halted travel services and cancelled major events. An analysis of countrywide CAT density by Verisk shows the highest concentration of loss between December 21 and December 25, 2022 was in the southern U.S., as well as highly populated areas in the north.