Ebene News – CA – Winter storm Uri will generate billions in insured losses: Moody’s

The huge winter storm that hit the middle of the United States and the south in mid-February, particularly hitting Texas hard, will generate billions in insured losses, according to a comment from Moody’s Investors Services

The storm, which has been dubbed Winter Storm Uri, has brought “snow, ice and some of the coldest temperatures in decades, particularly to Texas and southern UriS ”During the weekend of Valentine’s Day, extending until the President’s Day on February 15 and all the following week Millions of people were deprived of electricity and, in many cases, water , because of the storm which was also attributed to dozens of deaths

“We expect insured losses for US insurers P&C to be in the billions of dollars, with claims from homeowners, commercial property and automotive industries,” Moody’s said in its report

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The Texas Insurance Board has said the storm “could be the costliest winter weather event in state history,” and independent insurance agents in Texas said in a statement on her website that she “should be the biggest insurance claim event in Texas history”

“The last winter storm to exceed $ 1 billion was Winter Storm Quinn, which hit the northeastern states of the United States in March 2018” – Moody’s Investor Services

Property damage inside and outside of homes and commercial structures will result from snow and ice outside buildings, and “flooding and other water damage from pipes frozen and broken ”inside affected properties, Moody’s said

Homeowners and commercial property cover water loss caused by frozen and broken pipes inside insured buildings

Business insurance claims can also include downtime coverage, “which is optional in many commercial property policies,” Moody’s said

“There is a rider for business income policies that covers loss of business income due to loss of utility service However, loss of business income due solely to inclement weather is unlikely to be covered, ”explained Patrick Wraight, director of the Insurance Journal’s Academy of Insurance.

Coverage in the event of loss of public service “generally has a specific interruption period, for example 24 or 48 hours before the coverage is triggered With stretches of Texas running out of power and / or water for more than 24 hours, losses from service interruptions could accumulate for commercial property insurers depending on the length of the interruptions, ”according to Moody’s

Auto insurers will also face significant claims in states where icy roads have resulted in a high number of accidents, especially in states where drivers are not used to driving in snowy conditions.

According to the Texas Department of Insurance’s 2020 annual report, home insurers underwrite over $ 10 billion in home insurance in the state, while the personal auto insurance market exceeds $ 23 billion

In a media advisory, Air Worldwide reported that in mid-February, 39 US states fell under “some type of winter weather advisory or storm warning – the largest region under a winter storm warning since 2005 “

The disaster modeling company reported that more than “2000 records for cold temperatures were set, from New Orleans (25 ° F, record 29 ° in 1993) to Dallas (-1 ° F, record high from 12 ° in 1903) to – 31 ° F in Lincoln, Nebraska Wind chills in the Dallas area reached as low as -15 ° F and between 3 and 6 inches of snow blanketed the area “

More than 100 million in the US have been affected by the storm According to Air Worldwide, on February 16 “the country set a new record for the largest area of ​​the United States ever covered with snow, 73% of the nation (since 2003 satellite records have been kept) “

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Winter Storm Uri

Ebene News – CA – Winter Storm Uri to generate billions in insured losses: Moody’s

Source: https://www.insurancejournal.com/news/southcentral/2021/02/18/601795.htm