Iowa Insurance Claims from August Derecho Top $1.6B

November 9, 2020

As of Nov. 2, 2020, more than 200,000 claims arising from the Aug. 10 derecho windstorm have been reported in Iowa, insurance regulators say. Of those, nearly 160,000 claims totaling more than $1.6 billion have been paid already.

Insurance companies are holding more than a billion in reserves to be used for the remaining claims, according to the Iowa Insurance Division.

“As policyholders pursue claims under their insurance contracts, we encourage property owners to continue to work diligently with their insurance company and agent as they obtain the necessary repairs,” Iowa Insurance Commissioner Doug Ommen said in a media release. “Adjustments can take time, but we have seen other challenges, including early cold, snow and some shortages of materials and contractors. Delays in replacement of grain bins have garnered attention. Further weather concerns with winter inching closer places concern on whether to wait until spring to make repairs to the roof, siding, etc.

“If a consumer believes the insurance company is providing less than what is promised in their insurance contract, they can file a complaint with us at the Iowa Insurance Division. We will review the contract and claim details.”

In the release, the insurance division reminded consumers that contractors are prohibited by law from negotiating the insurance claim on behalf of the policyholder. It’s important to keep the lines of communication open with your carrier to continue to work through the differences or the disparate views on the restoration of your property, the division said.

Ommen said his office has received a little more than 90 derecho-related complaints.

Unique complaint areas generated from this derecho are delays in the inspection process, delays in actually getting the repairs made, delays in communication.

Iowans needing to file a complaint with the Iowa Insurance Division can do so at https://iid.iowa.gov/insurance-consumer-complaint.

See claims data as of Nov. 2, 2020 below by category:

Company Number of Claims Reported Amount of Claims Paid ($) Number of Claims Paid
Homeowners multiple peril 103,884 876,803,215.57 81,472
Farmowners multiple peril 40,196 190,997,753.74 19,965
Private Passenger Auto 18,902 71,261,949.20 12,464
Commercial multiple peril 13,213 335,410,281.94 22,122
Auto Physical Damage 9,253 37,367,541.72 9,734
Multiple Crop 6,921 35,214,409.00 505
Private Crop 4,087 25,792,023.00 1,691
Dwelling Fires, RV, Motorcycle, Boat 1,290 6,969,514.41 748
Commercial Auto 1,239 7,866,071.46 8,215
Crop Hail 742 10,490,943.00 433
Inland marine 536 9,516,738.61 300
Other 176 2,739,132.61 134
Business Interruption 78 664,920.83 56
Commercial Property 53 1,212,535.00 10
Ocean Marine 16 27,211.24 7
Liability 9 125,251.53 3
Workers Comp 1 0 0
Cargo 1 0 0
Total 200,597 1,612,459,493 157,859

Source: Iowa Insurance Division

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