Cleaning & Restoration Breaking News

Insurers Face $100 Mln Bill for Tornado

May 9, 2003
/ Print / Reprints /
/ Text Size+
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.



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.


Don't underestimate the value of a good Internet marketing plan. In fact, if you do this right, it's not uncommon to see ROI along the lines of 30-to-1. Here's a look at 27 free and low-cost tips that you can begin implementing within your cleaning business today to drive more business.
More Podcasts

ICS Cleaning Specialist Magazine


2014 August

The August issue of ICS features stories on carpet mold, good training, marketing for cleaners, traffic lane cleaning, and cool products.

Table Of Contents Subscribe

Social Media

Social media is a good way to regularly keep in touch and interact with current clients and reach potential ones. What social mediums do you use in your cleaning/restoration business?
View Results Poll Archive


Get Paid! book cover
Get Paid! (ebook)
Over 30 authors – over 40 articles…from attorneys, contractors, consultants, instructors and others, both inside and outside the restoration industry. R & R, C & R and Cleanfax, opened their archives and gave us the best they had, other chapters were created just for the “Get Paid!” book and its readers. And every one of them has ideas for how to get paid what you are owed.

More Products


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

Click here to view


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

Click here to view


facebook_40.png twitter_40px.png youtube_40px.pngcrc logo