Insurance Industry Tallies Initial November 10 Ohio Tornado/Storm Losses

COLUMBUS–According to the Ohio Insurance Institute, the November 10 series of tornadoes and storms across the Buckeye state caused at least $91.6 million in insured losses, making it one of the largest disasters in recent history. The storm front set off multiple tornadoes, including an F-4 tornado packing winds over 200 mph in Van Wert and hail, rain and damaging winds in other parts of the state.

The November storm spawned several tornadoes in northern Ohio, killing five people in Van Wert, Putnam and Seneca counties. At least four tornadoes with winds exceeding 100 mph were reported in Van Wert County. The National Weather Service confirmed a tornado that tracked through Twinsburg, Macedonia and Solon. A twister also hit Ashland and Medina counties, and another was confirmed in Wayne County.

OII loss estimates include the entire storm front that passed through the state on November 10. According to survey results, insurance companies are reporting at least 14,905 insured claims from the storms. The Institute expects the final tally of insured losses and claims to be higher.

Click here for a partial list of insurance claims/loss estimates by company.

The American Red Cross reports residential damage in 17 counties. Its initial findings indicated that 696 dwellings incurred at least minor damage. 120 single-family homes, 10 mobile homes and 22 apartments were destroyed according to the report. One of the hardest hit areas was an industrial park in Van Wert with losses well into the millions.

Governor Bob Taft sent a request to the President on November 15 to declare five northwest Ohio counties federal disaster areas due to extensive damage to home, businesses, and local and state government buildings and infrastructure. If granted, residents of Ottawa, Paulding, Putnam, Seneca and Van Wert counties would be eligible for federal low-interest Small Business Administration loans and cash grants for uninsured and essential needs.

33 property/casualty insurance companies reported their loss information to the OII. Of those companies reporting claims, their totals range from four to 4,500 claims. Insured loss estimates for the same group range from $15,000 to $19 million.

"Survey participants represent about 85% of Ohio's homeowners and personal auto insurance markets and about half of the commercial lines market," said OII President Daniel J. Kelso. "We anticipate the number of claims and amount of losses to increase as insurers update their figures and other companies report in."

A couple of companies participating in the survey were unable to provide specific breakdowns by type of losses (auto, home or commercial) and/or provide comprehensive loss figures at press time.

About 54% of the claims filed to-date pertain to homeowners or renters insurance. The most common property losses reported from the tornadoes, wind and hail include total and partial structural losses, and damage to roofs and siding caused by wind and/or hail. The estimated homeowners losses to-date are about $55.8 million for 8,059 claims.

Uprooted trees and flying debris also caused damage to homes and autos. Broken vehicle and home windows, and vehicles with hail damage were commonly reported losses by a number of companies.

About 42% of the claims, according to the OII survey, were for damaged or totaled vehicles. Losses in the personal auto line currently stand at 6,295 claims for $13.9 million.

Commercial losses, based on 405 claims reported, are estimated at about $22.3 million, equating to 3% of the claims reported to-date.

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.

Losses due to tornadoes, high winds and hail are covered under the homeowners insurance "windstorm" peril. Renters insurance provides coverage to policyholder belongings 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 assembled catastrophe teams to assist with the claims handling process," added Kelso.

Other storms in recent Ohio history that produced major tornado or hailstorm damage in Ohio, according to preliminary findings by the OII, 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.
• April 3-4, 1974: Known as the Superoutbreak, it produced 148 tornadoes within a 24-hour period, the largest number on record. During the height of activity, 15 tornadoes were on the ground simultaneously. 13 states and Canada were affected. Included in this outbreak was the F-5 tornado in Xenia that resulted in 33 deaths and 1,150 injuries. More than 1,000 homes were destroyed. According to Property Claim Services, Ohio sustained $150 million in insured losses, the majority of which was related to the Xenia tornado.

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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11/10 Insurance company tornado/storm loss estimates (partial list)

* Total dollar losses not available on 11/18/02

Additional resources on the Web

Click here for the 11/14/02 News release from the Insurance Information Institute: Tornado losses in Tennessee, Ohio and other eastern states expected to be $290 million

Click here for a list of Ohio's deadly tornadoes 1950-2001, an explanation of the Fujita Tornado Damage Scale and other tornado facts