FOR IMMEDIATE RELEASE: June 13, 2001

APRIL DAYTON AREA HAILSTORM CAUSES SUBSTANTIAL DAMAGE

COLUMBUS--A rare, but costly hailstorm in the Dayton-Kettering area on April 9, caused at least $70 million in insured losses, according to the Ohio Insurance Institute (OII).  Losses from the golf ball-sized hail that reigned over the Dayton suburb for several minutes caused insurance losses exceeding those of the Xenia tornado of September 20, 2000.  According to Property Claim Services, insured losses from the Xenia tornado were about $45 million.

"These results came as a big surprise," said OII President Dan Kelso.  "The level of losses experienced by insurers, in our estimation, is similar to those you typically see in such hail-prone states as Wyoming and Colorado, not Ohio."

A catastrophe, in insurance terms, is an event that causes more than $25 million in insured property damage and affects multiple insurers.

Some insurance companies report that they are still taking new claims. Some of the more recent ones could stem from a second hailstorm reported in the same area on May 24.  The Institute expects the final tally of insured hailstorm-related losses and claims from the April storm to be higher than its initial findings.

"Although our survey includes the majority of insurers with policyholders in the Dayton-Kettering area, there are likely other companies with policyholders who experienced losses and were not survey participants," said Kelso.  "Also, there are still claims trickling in from policyholders two months after the storm."

The OII survey shows that at least 27,573 claims have been filed from the storm with hail up to two inches in diameter.  Over half of the claims (52%) were filed under homeowners insurance for damages mostly to roofs, siding and broken windows.  Homeowners insurance losses totaled nearly $46 million.  46% of the claims were for vehicle damage, mostly dents in car roofs and hoods.  Vehicle-related claims are expected to reach at least $20 million. Most of the remaining losses were for business-related claims, estimated at close to $3.5 million.  (Click here for a partial list of insurance company hailstorm loss estimates.)

This hailstorm lasted longer than most.  According to Dayton Daily News accounts, the storm lasted 15 to 20 minutes, concentrating on a populous suburb of Dayton.

"When you have an intense storm lasting more than a few minutes in a heavily populated area such as Kettering, you start to see losses well above what you might expect," said Kelso.  "The good news is that no one was hurt."

Damages caused by hail, and related perils such as high winds and tornadoes, are covered by homeowners, renters and commercial insurance policies.  Pot-marked vehicles due to hail damage are covered under the comprehensive portion of auto insurance.  This is an optional coverage that protects insured vehicles in situations other than a collision or overturn.

34 property/casualty insurance companies participated in the OII claims loss survey, including nine of the top ten writers of personal auto insurance and eight of the top writers of homeowners insurance in Ohio.  Insurance company claims ranged from no losses to 7,170 claims.  Losses reported by companies varied from a low of $2,500 to over $20 million.

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.

Insurance Company Hailstorm Claims and Loss Estimates (partial list)