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Reconstruction value of storm damage in homes is estimated at $ 3.7 billion



CoreLogic Inc. said late Tuesday that the rebuilding value of home damage from this week's outbreak of severe convective storms on the U.S. plains will approach $ 3.7 billion.

Separately, in a note on Wednesday, financial analyst DBS Morningstar said The damage is estimated at $ 2 billion to $ 5 billion, within insurance companies' tolerances. the $ 1,801 structures at $ 455 million; in Arkansas, 667 $ 120 million structures; and in Illinois, 470 $ 163 million structures. Missouri and Mississippi also suffered minor damage.

Kentucky was the hardest hit state when on Friday night, December 10, a fatal series of tornadoes hit six states: Arkansas, Illinois, Kentucky, Mississippi, Missouri and Tennessee, according to CoreLogic. [1

9659002] The largest cities affected by these tornadoes included Mayfield and Bowling Green, Kentucky. The Mayfield tornado was preliminarily classified as EF3 but will likely be upgraded to at least one EF4 when structural engineers and meteorologists examine the damage via ground surveys, CoreLogic said.

"While serious, this incident is expected to result in insured losses within historical levels of the US real estate and non-life insurance industry, which is sufficiently prepared to cover these claims without significant capital impact," DBS Morningstar said in a Wednesday briefing. [19659002] Property / non-life insurance companies with significant operations in the affected states will suffer a "moderate" impact on earnings, said DBS Morningstar, adding that although tornado damage can be serious, it is "exacerbated" by damage from hurricanes and other disasters. [19659000] ] While tornado damage is usually covered by property insurance contracts, "it can be a challenge to provide coverage in Tornado Alley in the Central Plains of the United States for insurance companies, which must charge higher premiums," said DBS Morningstar.

CoreLogic was acquired in June. of the private equity firms Stone Point Capital LLC and Insight Venture Management LLC, which do business as Insight Partners, for $ 80 per share in cash.


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