Insurance Claims from Recent Tornadoes May Top $1B

March came in like a very large and powerful lion, spawning severe weather across the Midwest, South and southeastern United States.

Insured losses from the tornadoes, hail and high winds that struck in late February and early March likely will climb above $1 billion, catastrophe risk modeling firm EQECAT announced on March 5. As of press time, updated claims estimates had not been released.

It is estimated that more than 150 tornadoes touched down in two distinct systems between Feb. 28 and March 3, with the majority occurring in Alabama, Kentucky, Illinois, Indiana and Tennessee, according to EQECAT.

At least 13 states were affected by the storms. Many of the tornadoes were rated EF3 on the Enhanced Fujita Scale, indicating winds between 136 to 165 mph, according to Risk Management Solutions (RMS).

An estimated EF4 tornado destroyed the town of Marysville, Ind., according to damage reports, and the town of nearby Henryville sustained very heavy damage. The Associated Press reported that two tornadoes hit Henryville, one of them with 170 mph or higher winds. Officials say the F4 tornado was on the ground for 52 miles and spanned some 150 yards. It was followed by a second, smaller tornado, the AP reported.

The National Weather Service received reports of tornadoes as far south as northern Florida.

The severe weather outbreak is associated with at least 37 fatalities, 20 of which were in Kentucky. U.S. tornado activity has resulted 49 fatalities this year, EQECAT said.

The total tornado count in 2012 was already extremely high before Feb. 28. The preliminary tornado count from the early March outbreak is the highest in terms of the number of tornadoes in March to date (from 1950).

According to data provided by NOAA’s Storm Prediction Center (SPC) as of March 5, the National Weather Service received 128 tornado reports, 290 hail reports, and 454 straight-line wind reports on March 2 alone. An additional 10 tornado, two hail, and 29 straight-line wind reports were associated with the storm system as it exited the coast on March 4.

In Kentucky as many as 30 tornadoes may have touched down, and officials have recorded damage in at least 40 counties, according to AIR Worldwide.

Significant damage was also reported in southern Ohio, where preliminary reports indicate that eight tornadoes touched down, with one given a preliminary EF-3 rating.

Illinois officials say they plan to appeal a decision by the Federal Emergency Management Agency to deny disaster aid to southern Illinois counties ravaged by tornadoes, the AP reported. A powerful Feb. 29 tornado left seven people dead in the southern Illinois community of Harrisburg.

Gov. Pat Quinn sought a major disaster declaration for the state and assistance for Gallatin, Randolph, Saline, Union and Williamson counties. In a letter, FEMA said the damage in Illinois was not “beyond the capabilities of the State, affected local governments and voluntary agencies.”

The AP reported that Harrisburg Mayor Eric Gregg questioned the criteria FEMA used to evaluate the damage, which was widespread in his town.

“How was the decision made, who made the decision and why was it made? I think that’s a fair question that needs to be answered, of course, to those that lost everything,” he said.

Clermont County, Ohio, officials say they won’t appeal a federal denial of disaster aid.

A federal disaster declaration was approved for Indiana’s Clark, Jefferson, Ripley, Scott, Warrick and Washington counties, the AP reported.