Texas Weather Catastrophes Cause $2.3 Billion Losses in 2012

Texas recorded seven catastrophic weather events in 2012 that resulted in $2.3 billion in insured losses.

The Dallas/Fort Worth area received the brunt of the damage from tornadoes and hail storms that occurred in April and June.

The multiple tornadoes and hail that pounded the Dallas/Fort Worth area on April 3 totaled an estimated $775 million in insured losses, while the June 13 storm caused an estimated $890 million in insured losses in the area.

The third costliest storm in Texas last year occurred in south Texas in McAllen, where estimated insured losses from wind and hail damage totaled $260 million.

ISO Services, which compiled the data, reported 26 weather catastrophes striking the country last year. ISO defines a catastrophe as a weather or man-made event that causes $25 million or more in insured property losses and affects a significant number of people.

The insured losses from Hurricane Sandy are currently estimated to be $11 billion of the country’s $27 billion total catastrophic losses in 2012.

Gary Kerney, assistant VP for property claims services with Verisk Insurance Solutions, said Texas had a quarter of the nation’s catastrophic weather events and recorded about 10 percent of the total insured losses.

“The number of weather catastrophes for the country was about average last year including the total insured losses,” said Kerney. “With the exception of Hurricane Sandy, Texas led all other states in insured weather losses.”

All seven of the weather catastrophes in Texas occurred between March 18 and June 13.

ISO’s estimated insured losses include storm damage to homes, cars and businesses, but exclude flood damage that would be provided by coverage from the National Flood Insurance Program.

Source: The Insurance Council of Texas