Winter Storm Fern Expected to Result in $6.7 Million in Insured Losses

The late January winter storm has resulted in staggering insured losses amounting to $6.7 billion, marking it as one of the most expensive winter storms since 1950. This estimate, provided by catastrophe modeler KCC, led by the renowned modeling pioneer Karen Clark, encompasses privately insured losses stemming from damage to residential, commercial, and industrial properties. The storm, characterized by snow, ice, wind, and extreme cold, impacted over half of the U.S. states, affecting approximately 200 million people from January 23 to January 27.

If KCC’s assessment holds true, Winter Storm Fern will rank as the third costliest winter event for insurers. The financial toll underscores the severity of the storm’s impact across the nation.

Fern’s freezing temperatures were the primary cause of damage, followed closely by the accumulation of snow and ice. The storm led to fallen trees and downed power lines, resulting in widespread outages across southern New Mexico and Texas, extending up to Kentucky. Major cities like Austin, San Antonio, and Houston recorded unprecedented low temperatures during this period.

According to KCC, the highest losses were reported in Texas and Tennessee. The most significant outages occurred in Louisiana, extending through northern Mississippi and into Tennessee. Prolonged outages can exacerbate damage, particularly from frozen pipes, a concern that is especially relevant in southern and southeastern states where properties are not typically built to withstand such extreme cold.

Interestingly, commercial properties experienced more significant damage compared to residential homes. KCC noted that commercial claims tend to be, on average, much higher than those for residential properties, reflecting the broader economic impact of the storm.

Photo: A man walks past a car damaged by a tree that fell during an ice storm in Oxford, Miss., on January 26. (AP Photo/Bruce Newman)

Topics
Profit Loss
Windstorm

The late January winter storm has resulted in staggering insured losses amounting to $6.7 billion, marking it as one of the most expensive winter storms since 1950. This estimate, provided by catastrophe modeler KCC, led by the renowned modeling pioneer Karen Clark, encompasses privately insured losses stemming from damage to residential, commercial, and industrial properties. The storm, characterized by snow, ice, wind, and extreme cold, impacted over half of the U.S. states, affecting approximately 200 million people from January 23 to January 27.

If KCC’s assessment holds true, Winter Storm Fern will rank as the third costliest winter event for insurers. The financial toll underscores the severity of the storm’s impact across the nation.

Fern’s freezing temperatures were the primary cause of damage, followed closely by the accumulation of snow and ice. The storm led to fallen trees and downed power lines, resulting in widespread outages across southern New Mexico and Texas, extending up to Kentucky. Major cities like Austin, San Antonio, and Houston recorded unprecedented low temperatures during this period.

According to KCC, the highest losses were reported in Texas and Tennessee. The most significant outages occurred in Louisiana, extending through northern Mississippi and into Tennessee. Prolonged outages can exacerbate damage, particularly from frozen pipes, a concern that is especially relevant in southern and southeastern states where properties are not typically built to withstand such extreme cold.

Interestingly, commercial properties experienced more significant damage compared to residential homes. KCC noted that commercial claims tend to be, on average, much higher than those for residential properties, reflecting the broader economic impact of the storm.

Photo: A man walks past a car damaged by a tree that fell during an ice storm in Oxford, Miss., on January 26. (AP Photo/Bruce Newman)

Topics
Profit Loss
Windstorm