June, July Ohio Storm Losses Rise to More than $400M

Insured losses from a round of summer storms in late June and early July have risen to more than $400 million, a state-based insurance information group reported.

Property casualty insurers are reporting losses of at least $433.5 million from the storms, according to the Ohio Insurance Institute (OII).

The OII said the round of storms is the third costliest natural disaster to hit the Buckeye state in recent times, behind the Sept.14, 2008, Hurricane Ike windstorm and the April 3-4, 1974, Xenia tornado super-outbreak.

Statewide preliminary estimates find insured losses totaled $433.5 to $440 million from the six-day period, from June 28 through July 4.

Ohio claims from the summer “derecho” storms are estimated at 96,725 to 107,300.

A derecho, according to the National Oceanic and Atmospheric Administration (NOAA) Storm Prediction Center, is a widespread, long-lived windstorm associated with a band of rapidly moving showers or thunderstorms. A derecho can cause tornado-like damage, but is typically along a relatively straight swath, also described as “straight-line winds.” By definition it includes wind gusts of at least 58 mph along most of its length.

Property Claim Services reports damage due to flood, hail, tornadoes and high wind caused overall losses of $1.125 billion in Midwest and Eastern states during the June 28 – July 2 storm event. PCS reports the July 2 through July 4 storms caused an additional $300 million in losses in five states including Ohio, Michigan, Minnesota, Pennsylvania and Wisconsin. In both of these storm events, PCS ranks Ohio as having the highest dollar loss estimates.

According to OII President Dan Kelso, this is the eighth major natural disaster to hit Ohio since 2011, which includes two winter storms in 2011 and six wind-hail storms.

According to the Ohio Emergency Management Agency situation reports, five Ohio deaths are blamed on the recent summer storms. One was from a barn collapse and the other four were heat-related.

The OII said 27 property/casualty insurance companies participated in the June-July summer storm survey. They represent more than 76 percent of Ohio’s personal auto market, more than 73 percent of the homeowners insurance market and over 30 percent of Ohio’s commercial lines market based on 2011 Ohio market share figures. Initial insurance company claims estimates ranged from one to 17,900. Insured losses reported by companies varied from $20,000 to nearly $61 million.

• Homeowners: 74,606
• Auto: 15,705
• Business: 6,083

• Homeowners: $328.4 million
• Auto: $34.4 million
• Business: $65.6 million

OII survey findings show that the majority of claims reported to-date (about 78 percent) pertain to homeowners or renters insurance. The storms caused wind and hail damage to roofs, gutters, siding, windows and outdoor property. Refrigeration losses and business interruption claims were also notable due to the duration of power outages and high temperatures throughout the state.

“Not all insurance companies are represented by OII’s survey or PCS findings. Final losses will likely be higher than these preliminary estimates,” Kelso noted.

Source: OII