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Rocky Mountain Insurance Information
NEWS
6565 South Dayton St. #2400, Greenwood Village, Colorado 80111
Serving Colorado, New Mexico, Utah & Wyoming
Contact: Carole Walker, Executive Director
(303) 790-0216 or 1-800-355-9524
Release Date: Immediately
Topic: Catastrophes
BLIZZARD OF 2003 LEAVES BEHIND AN AVALANCHE OF INSURANCE CLAIMS—THE INSURANCE PRICE TAG IS NOW ESTIMATED AT MORE THAN $93 MILLION.
April 7, 2003 – As expected, the early insurance estimates from Colorado’s spring blizzard have piled up in the weeks of digging out and settling up claims—the early estimates of $33.6 million have now almost tripled to an estimated $93.3 million in insured losses as the result of the historic March snow storm. The insurance industry estimates that the Blizzard of 2003 is the most expensive winter storm in Colorado history. Claims are still expected to come in as people observe damage and the settlement process continues, but the pace has slowed significantly from the days following the storm. The insured damages are based on the approximately 28,257 claims filed so far. More than 90% of the storm damage is based on homeowners insurance claims. Less than 10% of the insured damage is due to auto insurance claims, with the bulk of that from vehicles being crushed rather than weather-related accidents.
The majority of the damage is the result of wet, heavy snow causing collapses to roofs, porches, awnings, carports and outbuildings. There is also significant amount of damage from downed trees and limbs, along with claims for wind, snow melt leakage, food spoilage and out-of-pocket living expenses for people forced out of their home due to storm damage. This estimate is for damage to homes and automobiles and excludes the large commercial building losses resulting from the blizzard.
“One of the biggest factors that has impacted the high insurance price tag of this storm is the rising cost to fix and rebuild homes in this current building market,” says Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association. “The average cost per homeowner insurance claim is more than $3,500 and many homes were completely destroyed due to roof collapses and structural damage.”
Colorado doesn’t generally experience large losses from winter-related storms:
- $93.3 million in insured damage resulting from heavy snow and ice on March 18-19, 2003.
- $10.5 million in insured damage resulting from heavy snow and ice on Oct. 24-26, 1997.
- $6.4 million in insured damage occurred from Sept. 20, 1995.
- $4.9 million in insured damage occurred on Dec. 22-26, 1982.
Colorado’s most costly catastrophe in state history was a $625 million hailstorm that battered the Denver-metro area on July 11, 1990.
As Colorado moves into severe weather season consider the surprise blizzard an insurance wakeup call! RMIIA recommends that you take these preventative steps:
DO AN ANNUAL INSURANCE CHECK UP
- Insurance is something most people don’t even want to think about until they need it the most. But, understanding what is and isn’t covered in your homeowners’ insurance policy can mean the difference of being able to rebuild your home and replace your personal belongings. Homeowners need to do annual insurance policy "check ups" to make sure they keep up with local building costs and have adjusted their coverage to include home remodeling and additions.
- If you don’t have replacement coverage, consider spending a few extra dollars for coverage that pays for the cost of replacing the damaged property without deduction for depreciation.
KNOW WHAT IS & ISN’T COVERED
- The typical homeowners insurance policy covers damage resulting from fire, windstorm, hail, water damage (excluding flooding), riots and explosion as well as other causes of loss, such as theft and the extra cost of living elsewhere while the structure is being repaired or rebuilt.
- Your policy also covers your legal liability (up to policy limits) if you, members of your family or even your pets hurt other people or their property, not just in your house, but away from it, as well. If you have a lot of assets to protect, you may want to consider an umbrella policy that offers increased protection against lawsuits.
- The standard policy does not cover flooding, so you may want to look into flood insurance coverage if you’re concerned that you’re at risk for rising floodwaters.
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Rocky Mountain Insurance Information Association is a non-profit consumer information organization. Affiliated with the Insurance Information Institute, RMIIA has been serving consumers and the media since 1952.
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