almost670K Property Insurance Claims in Texas from Hurricane Harvey: TDI



Hurricane Harvey ended in almost670,000 in combined non-publicand commercial property insurance claims to privateinsurers, the Texas WindtyphoonInsurance Association (TWIA) and the Texas Fair Access to Insurance Requirements Plan (FAIR Plan), insurance regulators said in a giftatidirectly to state lawmakers in late January.

The Texas Department of Insurance said that number features about 354,000 residential property claims — including homeowners, residential and mobile owners— and about 203,000 carclaims. Around 37,000 commercial property claims, 66,000 flood claims and 12,000 “other” insurance claims even were filed because of wear from Harvey.

 

The numbers are derived from knowledgecollected by TDI through a knowledge decision to insurers issued on Sept. 21, 2017, and reflect datareceived through late October.

All property insurers in Texas, including admitted and surplus lines companies, TWIA, and the FAIR Plan were required to report on claims due to Hurricane Harvey, which made landfall at the Texas coast several times beginning on Aug. 2fiveof los angelesst year.

TDI said insurers reported $4.fivebillion in paid losses as of the datacall reporting date. at the same time asthe numbers are expected to switch as more claims are reported, settled, and shutd, insurers estimate that Harvey’s paid claims would total $15.7 billion.

versus 2008’s Hurricane Ike, which was largely a wind event, the majority of Harvey’s damage was due to flooding. nearly all of Harvey claims and dadid losses — about 90 %— generated from Houston and Southeast Texas (collectively Houston Area), and the Coastal Bend.

a few850 companies, or about 98 %of the entire property and carinsurance market in Texas, responded to the datacall, with 54fivecompanies submitting knowledgeon the top of September. the remainder of the companiessubmitted knowledgein mid- to late October.

at the same time asthe odds differ by line of insurance, TDI noted s of the reporting date, about 27 %of claims for every form of insurance were paid, or closed with a loss payment, 28 %were closed and not using a loss payment, 44 %were still open, and seven %were reopened.

 

The agency said a toppercentage of house owners insurance claims were closed without payment because, especially in Houston and Southeast Texas, much of the wear to residential property was due to flooding and residentialowners policies typically don’t cover flooding. ownerswill have filed claims under their ownerspolicy “to get a denial to use for FEMA assistance,” TDI said.

the typical claim quantityfor damage due to Hurricane Harvey to residential properties, excluding flood, is set $7,600. For flood insurance the typical claims quantityis around $80,000. For commercial property claims the typical is set $95,000 and the typical for carclaims is set $16,000, in line with TDI.

Auto Losses

About 6five%of vehiclemobile claims involved total losses, particularly within the Houston area. As of the reporting date 47 %of vehiclemobile claims were paid — closed with a loss payment. Around five%of the automobile says were reopened. On average, it has taken thirteendays for insurers to close toan carclaim.

greater than 90 %of the car losses generated within the Houston area region, which also saw the top average loss per policy, in line with TDI.

For all regions in Texas, the typical paid auto loss from Harvey is $19,943. the typical paid auto loss within the Houston area is $20,544 at the same time asthe typical paid auto loss within the Coastal Bfinisharea is $10,251.

TDI presented the result of its Hurricane Harvey data decision to the Senate Business and Commerce Committee on Jan. 23.