June 03, 2011
By: Carrie Van Brunt-Wiley
State Farm paid out nearly $1 billion in auto, business and homeowners insurance claims as the result of a string of severe storms that occurred between April and May.
On the year, the Illinois-based property insurer had paid out $2.5 billion in catastrophe claims, not far from the $3.8 billion the company normally spends on claims in an average year. Tornadoes and storms from April and May accounted for $916 million of that total for 2011, though that's not taking into account the late-May storms in Texas, Oklahoma and Joplin, Missouri, the latter of which killed more than 100 people.
In a statement, the company announced it has processed roughly 300,000 claims in its auto, business and home insurance divisions in the past two months.
"The country has been hit hard with an unprecedented succession of horrible weather and horrific losses. From the claims volume and types and extent of damage, you can easily characterize these storms as a 'Spring Hurricane.' Emergency responders, disaster relief volunteers and homeowner insurers are all contributing to the recovery effort," said Brian Boyden, State Farm executive vice president.
Researchers told the Associated Press many of the storms had more intense implications than they otherwise would have because they occurred in areas of high urban sprawl, increasing the amount of land that could be susceptible to property damage.
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