Weather-Related Property Claims Mount in Texas
Severe weather in all regions of the state this year has resulted in high numbers of insurance claims from property and auto losses in Texas, according to an insurance company trade group.
The Insurance Council of Texas reported that paid residential property losses in April and May were close to $900 million from 114,000 claims. These losses did not include business or auto claims. Last year, both months accounted for only 72,000 claims and $650 million in paid losses.
“Windstorm losses in both April and May were much higher than 2013 and 2014,” said Mark Hanna, a spokesman for the Insurance Council of Texas. “There wasn’t one catastrophic storm that caused all of the damage. It was a non-stop pattern of severe storms that literally blanketed the entire state.”
Texas homeowners and businesses reported almost 8,000 flood claims to the National Flood Insurance Program from spring storms. In comparison, the total number of flood claims from all of Louisiana, Arkansas and Oklahoma for the same time period was 579.
With 95 percent of the claims settled, Texas flood losses to homes and businesses amounted to more than $400 million for the period. Texas auto insurers say the losses from vehicles submerged in flood waters amounted to an additional $300 million.
The wet spring was followed by a dry summer resulting in wildfires in North and Central Texas. The Bastrop County area got hit the worst with the loss of nearly 60 homes, the ICT said.
Record fall rainfall amounts also caused severe flooding in Central and Southeast Texas.
“Record rainfall flooded homes and submerged vehicles in the Austin and Houston areas,” Hanna said. “Total auto insurance losses for 2015 could reach $1 billion.”
Source: Insurance Council of Texas
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