Cleaning & Restoration Breaking News

Insurers Face $100 Mln Bill for Tornado

NEW YORK (Reuters) - Insurers State Farm, Farmers Insurance and Allstate Corp. will foot most of the $100 million or more industry bill for a tornado that swept through an Oklahoma City suburb on Thursday, according to local officials.

The three insurers cover 60 percent of the state's cars and homes, according to the Oklahoma Insurance Department, followed by smaller state mutuals like Oklahoma Farm Bureau and Shelter Mutual. The same companies also insure about half the private cars in the state.

The tornado, which touched down in Moore, about 15 miles south of Oklahoma City, just after 5 p.m. local time on Thursday, destroyed at least 300 homes and damaged another 1,500. A General Motors Corp. plant was damaged, along with other local businesses.

”My initial guess (of the insured damage) is over $100 million,” David Meuser, public information offiicer with the state insurance department, told Reuters. “I'd be surprised if it was over $200 million.”

General Motors said it was still assessing the damage from the tornado, and that it was too early to estimate the cost.

Insurers paid out $600 million four years ago, when Oklahoma was hit by the strongest U.S. tornado on record. Overall, insurers paid out $1.6 billion in claims for that tornado, which hit 18 states in May 1999.

The most expensive U.S. storm was 1992's Hurricane Andrew, which cost insurers more than $20 billion, adjusted for inflation.

Earlier this week, tornadoes that swept across Arkansas, Kansas, Missouri, Nebraska, South Dakota and Tennessee caused damage that will cost insurers at least $325 million, according to the Insurance Information Institute, an industry-sponsored organization.

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.

Podcasts

Beginning April 21, Google will start judging websites based on their mobile friendliness. What exactly does this mean to you cleaning website? Find out in the latest edition of The Hitman Advertising Show, which will also cover tips and suggestions on getting mobile compliant.
More Podcasts

ICS Cleaning Specialist Magazine

CoverImage

2015 April

The April ICS issue features content on concrete polishing, green cleaning, air duct cleaning, injection sprayers and new products.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive

THE ICS STORE

FinalCover.gif
The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products

ICS DIRECTORY AND BUYING GUIDE

Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view

STAY CONNECTED

facebook_40.png twitter_40px.png youtube_40px.png

TRUCKMOUNT EQUIPMENT AND ACCESSORIES GUIDE

Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view