FOR RELEASE: September 27, 2000

Insurance Industry Tallies Initial September 20 Ohio Tornado/Storm Losses

COLUMBUS–The tornado that ripped through Xenia on September 20, along with damage in several other Ohio counties, caused at least $33.1 million in insured losses, according to the Ohio Insurance Institute (OII). The National Weather Service ranked the Xenia tornado as an F4, the second strongest level on the Fujita tornado-damage scale, which mean winds were clocked at least at 207 mph. Of all tornadoes, only 2% reach the F4 or F5 level.
A catastrophe, in insurance terms, is an event that causes more than $25 million in insured property damage and affects multiple insurers.

The National Weather Service confirmed that tornadoes touched down in Delaware, Licking, Huron, Erie, Knox and Greene counties on September 20. Fourteen counties reported damage to the Ohio Emergency Management Agency from the storm system, including Ashland, Ashtabula, Delaware, Erie, Greene, Huron, Jackson, Knox, Licking, Morrow, Scioto, Union, Warren and Vinton counties.

Insurance company adjusters and claims personnel are evaluating claims from several parts of the state, all associated with last Wednesday's storm system. The Institute expects the final tally of insured losses and claims to be higher than its initial estimate. Property Claims Services, a division of Insurance Services Offices, Inc. which provides statistical reports and analysis for the insurance industry, expects to have a comprehensive estimate of insured losses during the first week of October.

"Although our survey does include many of the insurers with policyholders in the Xenia area, there are likely other insurance companies with losses that are not included in our survey," said Kelso. "Also some insurance companies are still evaluating some of their losses so it's difficult to finalize anything at this point."

According to survey results, insurance companies are reporting at least 4,071 insured claims from last Wednesday evening's storm system.

"Most of the losses will be covered by either homeowners, renters or commercial insurance policies," he explained. "Those without insurance will hopefully 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 this peril. 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 report that catastrophe teams and claims specialists are in the Xenia area to assist in handling claims," added Kelso.

A total of 37 property/casualty (P/C) insurance companies participated in the OII claims loss survey, including the majority of Ohio's top ten writers of personal auto and homeowners insurance in Ohio. The total number of estimated claims ranged from no losses by some regional insurers to 1,200 claims, with dollar losses ranging from a few thousand to several million.

Three out of every four claims reported so far pertain to homeowners or renters insurance coverage. Some of the most common types of losses reported by insurers include total and partial structural losses, significant damage to roofs, and power outage-related losses. Uprooted trees and flying debris also caused substantial damage. Insurers also report that commercial policyholders were filing business interruption claims, as well as claims associated with structural and contents damage. 107 of the claims reported were for commercial or business policies.

Nearly one-fourth of the claims, according to the OII survey, were for damaged or totaled vehicles. Auto insurance protection for windstorms 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.

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.

– 30–

Click here for Insurance Company Tornado Claims and Loss Estimates table.

Note: For a copy of Ohio's history of tornadoes, contact the OII at 614-228-1593. Visit our Web site at www.ohioinsurance.org for additional information on Ohio's insurance industry, including a copy of our "Tornado Safety Tips" brochure, which can be found in the "Consumer Information" area of the Web site.