Barrage of Tornadoes Cause Damages in the Tens of Millions of Dollars
March 24th, 2006 by Penny Hagerman
Insurers nationwide are bracing themselves for losses in the tens of millions of dollars following the recent barrage of tornadoes in the Midwest.
According to Insurance Newsnet, “Initial reports pegged the number of storms-which hit Arkansas, Illinois, Kansas, Missouri and Oklahoma-at more than 100,” although the actual number of tornadoes involved has not yet been confirmed.
The Arkansas Insurance Department estimates that its state alone suffered a total of $25.5 million in insured losses. Other states have been declared disaster areas, but have not yet estimated total losses.
One insurer alone, American Family, is processing more than 10,000 claims as a result of the storms, as reported in a recent statement by that company.
What’s on tap for the remainder of the spring season? Only time will tell. But I have a feeling insurers will be digging deep in their coffers to cover the losses.
