2008: Worst Catastrophe Losses in Nearly 10 Years

The PCS (Property Claim Services) unit of ISO (Insurance Services Office) has confirmed that the first quarter of 2008 was the worst for catastrophic losses in nearly 10 years. Between January and March 2008 over 615,000 claims were filed in 22 states.

There were nine catastrophes that have resulted in an estimated $3.35 billion in property losses. Of these catastrophes, one occurred at a Georgia sugar refinery, another was a winter storm, and the remaining were severe weather (wind, hail, flooding, and tornadoes.)

Of the total losses, personal property accounted for 56% or $1.9 billion of the $3.35 billion in losses. Commercial property was another 31% or over $1 billion, and finally, 13% or $500 million were from vehicle damage.

States with the Top Property Losses Between January and March, 2008:* Georgia $610 million, Tennessee $535 million, California $360 million, Texas $270 million, and Arkansas $223 million.

First Quarter Losses, 1999 until 2008*

The Worst Tornado Season in a Decade

This memorial weekend, people in Minnesota and Iowa were at risk due to storms and tornadoes that left behind many injuries and much destruction.

Hugo, Minnesota was the hardest hit with reports of large hail, high winds, and torrential rains. The storms killed one child and left another in critical condition. Eight others were hospitalized with injuries. The Hugo City Administrator, Mike Ericson, said at least a dozen homes were destroyed, and three dozen damaged.

Chris Petree, Hugo’s Public Works Director, saw the effects firsthand, as his house was lifted off the ground, and the second floor was completely destroyed. Luckily, he and his wife and 2 year old daughter took shelter against the foundation in their basement. “All you hear is glass breaking and wood tearing and breaking in half,” Petree said.

In Iowa, six people were killed in Parkersburg and New Hartford with another 70 people sustaining injuries. Twenty-one businesses in Parkersburg were destroyed, as well as their local high school, city hall, and the town’s only grocery store and gas station. Overall in Iowa, over 400 homes were damaged, 200 completely destroyed.

Experts have called this tornado season one of the worst in a decade, having left over 100 people dead.

Suspect Charged with Arson in Florida

Earlier this week about 50 homes and 120 other structures in Palm Bay, Florida were destroyed by wildfires. The Assistant Fire Chief, John Stables, was very concerned with the wildfire’s potential damages, saying “We’ve exhausted all local resources, and we’re utilizing several resources from around the state… We’re at limited water as well.” By Thursday morning, the wildfires were 60% contained with the help of 250 to 300 firefighters.

A $10,000 reward was posted for information leading to an arrest of an arsonist who they profiled as “a trophy person” who would brag about their work. On Wednesday May 14th, 31 year old Brian Crowder was seen nearby the location of a suspicious fire in Palm Bay. When police attempted to apprehend the man, he ran and during the chase ignited several small fires. Crowder is also a suspect in other arson cases in Brevard County. Police will also question another 25 juveniles and adults with histories of arson in the Palm Bay area.

These fires burned about 10,000 acres (over 15 square miles) in Brevard County. There were two reasons that these fires were able to destroy so much: rampant development in the area, and year-round growing seasons. Unfortunately the state hasn’t been able to cut back vegetation by overseeing controlled fires because of the nearby development.

Weekend Tornadoes Leave Many Dead and Injured

Very strong weekend storms left 22 dead; 15 in Missouri, 6 in Oklahoma, and 1 in Georgia. The tornado travelled 63 miles from Oklahoma to Missouri and had 175 mile per hour winds. Five twisters caused by the storm travelled through Oklahoma, and two more in Arkansas.

The governor of Oklahoma, Brad Henry, said “It’s just horrific, it’s devastating to all of us. It appears the search and rescue part of the mission is over and now we’re in the cleanup phase.” Henry declared a state of emergency in Ottawa County.

Michael Chertoff, Homeland Security Secretary, and David Paulison, FEMA chief, plan on touring the affected areas on Tuesday. Paulison said, “We will partner with our state counterparts to ensure that we bring the full complement of federal resources to their aid as needed.”

A spokeswoman from the Oklahoma Department of Emergency Management said, “It looks like a war zone. Some homes have fallen in, some homes have lost roofs, and some are now just slabs.”

National Flood Insurance Program (NFIP) Renewal

The Senate agreed (90-1) to proceed to reauthorize NFIP, and final action on the legislation is expected by the end of the week. Through this bill the NFIP would continue through 2013. The current debt of $17 billion, which was caused after FEMA’s handling of Hurricane Katrina, would be forgiven.

Congress has been working for months on renewal of the National Flood Insurance Program, which is set to expire this coming September. The House passed a similar bill last year, but also called for a federal program that includes wind coverage in addition to the flood coverage.

The wind coverage is supported by lawmakers in coastal areas, but is opposed by others including insurers. This coverage would increase challenges for FEMA and potentially increase taxpayer costs. Others who oppose the wind coverage portion include environmentalists, state floodplain managers, fiscal policy conservatives, and taxpayer and consumer activists.

Tornado Destruction in Virginia

Monday April 28th, three tornadoes caused major damage across Virginia, and left over 200 people injured.

The first tornado began at 4pm in Suffolk, and moved eastward to Norfolk. Many homes, businesses and cars sustained damage. Sentara Obici Hospital, which contains 138 beds, was hit by the tornado, but continued operating. This tornado left 200 injured in Suffolk.

Closer to Richmond, Colonial Heights saw a second tornado, which injured at least 18 people. Seventy miles south of Richmond, near Lawrenceville, a third tornado left several homes damaged.

A tornado warning was in effect for the remainder of Monday, and the hazardous weather caused Governor Tim Kaine to declare a state-wide state of emergency.

SOS to Assist Senior Citizen Policy Holders

A senior citizens’ assisted living apartment complex in West Bloomfield, MI caught fire on Wednesday, April 9th affecting two of the complex’s buildings. The first tower was completely burnt; the second with severe smoke damage. SOS arrived with 3 specialists on Tuesday, April 15th to meet the estimated 19 policyholders affected, to capture their inventories and values.

18th Earthquake in Illinois Since Friday

"The big concern is... is this just the beginning of the 'big one?'"
- Keith Potter of Santa Claus, Indiana

At 12:38am on Monday April 21st, another earthquake was recorded in Illinois. This 4.5 magnitude quake was the 18th recorded in the region since last Friday. Monday's earthquake was centered six miles below ground and 37 miles NNW of Evansville, Indiana.

Last Friday at 4:36am an earthquake centered six miles northwest of Mount Carmel, Illinois woke people from their sleep. This was a magnitude 5.2 earthquake, just below the regional record of 5.4 which occurred in 1968.

The tremors were felt from areas as far as southern Michigan and Des Moines, Iowa. At least 30 people in Clarksville, Tennessee, which is 227 miles south of the epicenter, reported feeling the earthquake.

Earthquakes are rare in this area. David Behm, and Illinois resident told the Associated Press: "It shook our house where it woke me up. Windows were rattling, and you could hear it. The house was shaking inches. For people in central Illinois, this is a big deal. It's not like California."

Arkansas Flood Damages

For the past two weeks areas of Arkansas have been continually dealing with flooding. Unfortunately forecasts of rain have prevented any receding of flood waters, and in some cases have increased water levels.

FEMA administrator R. David Paulison believes it is too soon to evaluate damages; “Once the water dies down, we can start seeing what kind of infrastructure’s been damaged, whether it’s the roads or the sewage system, water system, police station, fire station. And we don’t know that yet.”

High waters have closed many roads across multiple counties. Still, recent rains have led to more predictions of flooding. In Black Rock, the Black River, with a flood stage of 14 feet, was expected to reach 25 feet on Tuesday. In Patterson, the Cache River, where the flood stage is 8 feet, was expected to reach 11 feet on Wednesday.

Department of Workforce Services has said that residents in the following counties may be eligible for disaster-unemployment assistance: Baxter, Benton, Independence, Jackson, Lawrence, Logan, Madison, Marion, Randolph, Stone, and Woodruff.

Central U.S. Faces Storms and Flooding

Heavy rain, which began on Monday March 17th, has cancelled flights, forced evacuations, and killed two people in the central United States. The National Weather Service warned of floods and flash floods from Texas to Ohio, and tornadoes in Texas, Louisiana, and Arkansas.

In Missouri, where forecasters predicted 10 or more inches of rain by Wednesday, the Governor (Matt Blunt) activated the National Guard to help with hundreds of closed roads. In Piedmont, one third of the homes were evacuated after a creek overflow caused 2 to 3 foot floods in the town. Other towns such as Winona and Ellington also had many homes and businesses evacuated.

These floods were the cause of two deaths in Missouri. In Ellington, the body of an 81 year old man was found in the water. A Department of Transportation worker was killed as he was helping a flooded area and his dump truck was hit by a tractor-trailer rig; He was 21 years old.

American Airlines cancelled 700 flights at Dallas-Fort Worth International Airport because of the weather, as winds were near 70 miles per hour. The west tower at the airport was evacuated after a funnel cloud (which becomes a tornado if it touches the ground) was reported. Ken Capps, an airport spokesman, said, “This is one of the most vicious thunderstorms DFW has seen in quite some time, especially its ongoing intensity. Add in two snow storms in the past two weeks, and this has been one of the most unusual early spring weather patterns in years.”

To read previous news stories, click here.