Industry, Residents Assessing West’s Winter Storm Damage

While it’s too soon to tally insured loss estimates from early winter storms that struck the West in January, residents who fled their homes due to flooding are facing damages, all while the National Weather Service predicts more rain for the area.

On Jan. 4-7, California, Nevada and Washington faced heavy wind and rain. The winter storm — at times producing hurricane-force winds — flooded towns, downed power lines, and dropped extraordinary amounts of snow from Washington to Southern California. The Sierra Mountains near Lake Tahoe were hardest hit, with massive amounts of snow in a 72-hour period. Nearby, at Ward Mountain, the highest winds were recorded on Jan. 4, sustained at 110 mph, gusting up to 163 mph, according to Boston-based risk modeling firm Air Worldwide.

In California, heavy wind and rain cut power to millions of homes and businesses, closing major roads and canceling flights at several airports. About 97,000 homes and businesses in Northern California and the Central Valley were still without power at press time, down from the more than 215,000 who suffered power outages earlier on Sunday, Jan. 6.

Power outages resulted when the storm ripped down nearly 500 miles of power lines and damaged 500 utility poles, and trees fell on powerlines, according to Pacific Gas and Electric. In the snowy Sierra foothills, repair crews will have to employ snowshoes, all-terrain vehicles and helicopters to restore power, the power company said.

In San Francisco, high winds blew scaffolding off buildings in the city and temporarily shut down the main highway. Alcatraz Island, the former prison, was closed to visitors. On the Golden Gate Bridge, winds reached 55 mph, preventing safe passage for trucks. Feared mudslides in areas burned by the Southern California October 2007 fires fortunately did not materialize.

Yet Nevada was not so lucky. A northern Nevada desert town was hard-hit by the storm system that piled up to 11 feet of snow in the Sierra Nevada mountains. On Saturday, Jan. 5, a levee on a rain-swollen canal ruptured in Fernley, Nev. — one of the fastest-growing cities in the state. Eight hundred homes were affected, while 290 suffered severe flood-related damage. Dozens of Fernley residents had to be rescued by helicopter and boat.

Elsewhere in Nevada, hundreds of homes sat in up to 8 feet of floodwater by the end of the weekend.

At least 11 deaths were blamed on the huge storm, and nine people were missing in snow-covered mountains.

According to Air Worldwide, the storm was unlike classic Pacific Northwest winter storms, which tend to concentrate damaging winds along the coasts of Washington and Oregon.

The track of the latest large system was fairly unusual in that some of the strongest winds and heaviest snows were over the northern half of California, the company said.

Winter storms are the third-largest cause of loss, resulting in about $1 billion in insured losses annually, according to the Insurance Information Institute. Melting snow can inflict significant damage to property, the group said. From 1987 to 2006, winter storms resulted in more than $23 billion in insured losses. In March 1993, a 20-state winter storm caused a whopping $1.7 billion in insured losses.

Air Worldwide said its research team was still evaluating the damage at press time, so it could not declare an insured loss estimate.

Nevertheless, claims are starting to roll in. Safeco’s National Property Claims Leader Robert Johnston acknowledged, “These storms have already caused significant damage over a wide area. Our goal is to provide immediate support and assistance to our customers when and where they need it.”

Johnston said company claims professionals had already mobilized to help victims recover from the wind and rain.

Similarly, Farmers Insurance claims personnel, agents and employees are said to be onsite to help victims. Farmers Senior Vice President of State Operations Steve Feely said that as of Saturday, Jan. 5, his company had received 2,925 claims.

Due to the damages caused by the rain, heavy snow and high winds in northern Nevada, Commissioner of Insurance Alice A. Molasky-Arman gave temporary approval for nonresident adjusters to adjust claims in the northern Nevada area for damage caused by the storms. She said the addition of claims personnel will assist insurance companies in expediting claims and assessing the amount of damages.

Under ordinary circumstances, only resident adjusters are permitted to handle claims. Nevada law, however, allows the commissioner to make exceptions during catastrophes.

In addition, Molasky-Arman’s agency has contacted major insurers in the area to make certain enough adjusting teams are available, which will increase the speed of benefit payments for property damage, she said.

“We are available to assist consumers with questions about their insurance policies, or who need assistance dealing with their insurance company,” Molasky-Arman said.

While insurance professionals continue to manage claims, more damage could be coming. National Weather Service meteorologist Angus Barkhuff said some parts of Northern California would get a reprieve from the rain and snow at press time on Monday, Jan. 7. But in the mountains, “there’s a chance of snow and snow showers all the way through Thursday, Jan. 10,” he said.

NWS also indicated that while precipitation had slowed throughout the region, as much as 3 feet of additional snow could hit high elevations of the Sierras.

Reports from the Associated Press contributed to this article.

Topics California Claims Windstorm Flood Washington Nevada