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Moore, Oklahoma Property Damage Could Top $3.5 Billion

The disaster modeling company Risk Management Solutions Inc. (RMS) estimates that the tornado that struck Moore, Oklahoma, on May 20 caused between $2 billion and $3.5 billion in insured losses...
May 29, 2013

Moore, OK picThe disaster modeling company Risk Management Solutions Inc. (RMS) estimates that the tornado that struck Moore, Oklahoma, on May 20 caused between $2 billion and $3.5 billion in insured losses. Matthew Nielsen, director of model product management at RMS, said that as many as 20,000 buildings were damaged and between 4,000 to 5,000 were completely destroyed by the storm. About 95 percent of the affected structures were residential. Many victims will receive insurance payouts that cover less of the damage than payouts from after previous storms have provided. Insurance executives, agents, regulators and consumer advocates say that the sharp increase in insured damage from tornadoes and thunderstorms has resulted in more policies with higher deductibles and stricter limits on payouts for roof damage and for total rebuilding.

“Serving our customers at their time of loss is our most important job, one that every Professional Insurance Agent takes very seriously,” said PIA National President Andy Harris. “It is the bond that seals the relationship with our clients so strongly. No virtual icon or voice from across the sea can substitute for the face to face compassionate attention that your local agent can provide at the time of your greatest need.”

Tornado damage in Oklahoma hasn’t been limited to just one city. “While most of the nation is focused on Moore, that was our 3rd straight day of tornadoes in Oklahoma, with the communities of Edmond, Shawnee, Little Axe, Bethel Acres and Carney suffering major tornado damage as well as loss of life,” said Claudia Montgomery of PIA of Oklahoma. “The Oklahoma Insurance Department has been excellent in this crisis and most of the insurance companies licensed in the state knew what was expected of them, as directed by our commissioner. The companies have been very proactive in assisting victims with their claims.”

Oklahoma Insurance Commissioner John Doak placed a moratorium on all insurance non-renewals, cancellations, and terminations for areas impacted by the tornado and other weather events that occurred in central Oklahoma, May 19-20. Additionally, any rate hikes for insurance policies in affected counties dated on or after May 19, 2013 are to be deferred for the duration of this moratorium, with coverage remaining in effect at the previously set rate.