The recent storm outbreak spanning from December 26 to 29, 2024 has led State Farm to process over 2,700 insurance claims across 10 states, from Texas to the Carolinas. These storms, characterized by high winds and a series of tornadoes, could see industry losses totaling hundreds of millions of dollars, according to Aon.
The global professional services firm highlighted that the storms caused tornado damage in multiple towns, affecting suburbs around Houston. Over 300 buildings in Montgomery County were damaged. Central Mississippi also saw approximately 300 houses affected in 23 counties.
Although Alabama and Mississippi filed the most claims, State Farm spokesperson Justin Tomczak emphasized that the damage did not warrant classification as a significant catastrophe.
The National Oceanic and Atmospheric Administration (NOAA) reported 133 tornadoes during this period, with an additional 400 incidents mainly involving strong winds and some hail. This surge in tornado activity contributes to a year that has seen a 35.5% increase in tornadoes compared to the same period last year, with 1,762 tornadoes recorded through November.
This trend of severe weather does not appear to be slowing, as NOAA predicts a major winter storm to impact the Plains, Midwest, and Mid-Atlantic in early 2025, likely leading to power outages and hazardous conditions. Furthermore, an Arctic polar vortex is expected to cause a temperature drop across the country.
Tomczak advises that with the expected continuation of severe weather, policyholders should prepare for more challenges ahead. State Farm's records from last winter indicated over 240,000 claims filed due to catastrophic storms, underscoring the increasing frequency and intensity of such weather events.
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