2018 Hailstorm Losses Predicted to Exceed $10B
Insured losses due to hailstorms are predicted to cause more than $10 billion in damages for the 11th consecutive year in 2018, according to Ian Giammanco, lead research meteorologist with the Insurance Institute for Business & Home Safety.
Giammanco, co-organizer of the first North American Workshop on Hail and Hailstorms in Boulder, Colorado, said that 20% of insured property losses from severe storms in the US are caused by straight-line winds and tornados and 10% are caused by lightning, while 70% of losses are attributed to hailstorms.
In Texas, hailstorm losses set a new record in 2016, causing more than $5 billion in damages. In 2017, Texas had the highest number of major hail events compared to any other state at 747, compared to 6,045 total US events.
While some residential and commercial property insurance policies have exclusions for wind and hail damage, standalone policies that protect against these phenomena can be written in the surplus lines market. For consumers that cannot get coverage in the admitted market, the specialty arena may be able to cover against these predicted losses.