Insurers Damaged by Spring Storms

May 24, 2002

According to the Insurance Services Office (ISO), U.S. insurers will pay out $700 million for damage from storms that wrecked havoc through 17 states at the end of April. The losses are the largest to hit the country since Tropical Storm Allison last year, which ended up hitting insurers with a $2.5 billion price tag.

Seventeen states, from Arkansas to New York, were impacted by storms and tornadoes between April 27 and May 3, with Tennessee and Virginia the worst-affected states. The number of claims reported to insurers in the five hardest-hit states breaks down as follows: Tennessee—38,000; Virginia—28,000; Maryland—39,000; Kentucky—33,000; and Ohio—22,000.

Insurers’ losses from the tornado that nailed La Plata, Md., devastating the center of the town, will alone total approximately $25 million in claims.

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