FOR RELEASE: May 14, 2002
6-05-02

FOR INFORMATION:
Mary Bonelli/Mitch Wilson, 614-228-1593
After hours: Mary/614-443-0400; Mitch/614-868-0575

Insurance Industry Tallies Initial April 28 Ohio Tornado/Storm Losses

COLUMBUS-The April 28 severe storm front that caused a tornado to touch down in Jackson Township and North Canton, and brought hail, rain and damaging winds to other parts of the state caused at least $38.2 million in insured losses, according to the Ohio Insurance Institute (OII). The 150 mph-winds of the tornado that touched down in the North Canton area, according to the Ohio Emergency Management Agency (EMA), damaged or destroyed 17 businesses, 206 homes and a number of vehicles. The EMA estimates that at least 95% of the tornado-damaged properties were insured.

Hail, rain and damaging winds also caused insured losses around the state, which are included in the OII loss estimates. According to survey results, insurance companies are reporting at least 13,960 insured claims from the storm system. The Institute expects the final tally of insured losses and claims to be higher than its initial estimate.

"Most reported losses are covered by homeowners, renters or commercial insurance," said OII President Dan Kelso. "Those without insurance may find assistance through state or federal means."

Tornadoes, high winds, hail and similar severe weather-related losses are covered under the homeowners insurance "windstorm" peril. Renters insurance also provides coverage to policyholder possessions due to windstorm. Business owners are covered under their commercial policies similar to homeowners. Many insurance companies have issued partial or full payments to policyholders, with the majority of claims expected to be settled within a month. In situations where an insured's residence is uninhabitable, most home and renters insurance policies provide coverage known as "additional living expenses," to cover such expenses as a motel and meals while their homes are being repaired.

"Toll-free numbers for filing claims have been publicized and a number of insurance companies provided catastrophe teams on site in the Canton area to assist in handling claims," added Kelso.

34 property/casualty insurance companies representing 80.6% of Ohio's homeowners insurance market participated in the OII claims loss survey, including Ohio's top ten writers of homeowners and personal auto insurance. The total number of estimated claims ranged from no losses by some regional insurers to 3,200 claims. Insured losses ranged from less than a thousand to several millions of dollars.

Over half (55%) of the claims filed to-date pertain to homeowners or renters insurance. The most common property losses reported include total and partial structural losses, damage to roofs and siding caused by wind and/or hail, and broken windows. Uprooted trees and flying debris also caused damage.

Over 40% of the claims, according to the OII survey, were for damaged or totaled vehicles. Auto insurance protection for windstorms and hail is provided under "other than collision" coverage, which is also known as "comprehensive" coverage. This is an optional coverage that protects insured vehicles in situations other than a collision or overturn.

Other recent storms that produced major tornado or hailstorm damage in Ohio, according to past OII surveys, include:

• April 9, 2001: A rare, but costly hailstorm in the Dayton-Kettering area that caused at least $70 million in insured losses from about 27,575 claims.
• September 20, 2000: A Xenia-area F4 tornado, along with storm damage in several other Ohio counties, caused at least $33.1 million in insured losses from 4,070 claims.
• April 9, 1999: An early morning F4 tornado that ripped through the Cincinnati area caused at least $66 million in insured losses from about 4,815 claims.

The OII is a trade and public information association representing insurance companies and agent groups for the property/casualty insurance industry. Its primary objective is to help Ohioans achieve a better understanding of insurance and safety issues.

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Note: Visit the OII Web site at www.ohioinsurance.org for information on repair tips following storms. Download a copy of "Tornado Safety Tips" brochure from: www.ohioinsurance.org/images/tornado.pdf.