Auto Claims Surge From May’s Colorado Springs Hail Storms

Just as one insurance agency was hosting special hours on Saturday for hail damage claims, a quick moving hail storm slapped downtown Colorado Springs.

This time, the storm left little damage behind, unlike the May 21 monster that brought golf-ball-sized hail to parts of the area, shattering windows, shredding roofs and denting cars. But it still served as a reminder: It's hail season, and Colorado Springs is at the tail end of what insurance professionals call "hail alley."

"Mother Nature has gotten us off to a bang," said Carole Walker, executive director of the Rocky Mountain Insurance Information Agency.

State Farm customers already have made more than 4,000 auto claims and 1,600 homeowner claims from damaging storms in May, said Angela Thorpe, State Farm spokeswoman. The agency has three 7-day-a- week locations in the state set up for auto claims, including one in Colorado Springs.

This weekend was busy, Thorpe said.

"They are seeing 60 to 70 cars a day at each location," she said. "It's pretty impressive to see them in operation. They get down to business. In almost every circumstance, we are giving check in hand."

Hail is the most damaging insured catastrophe, Walker said.

"Think about hail storms - thousands of cars and roofs are being battered," she said.

In the U.S. in 2012, State Farm alone paid $3.9 billion in damages caused by wind or hail. In Colorado, hail and wind have caused more than $3 billion in damage over the past 10 years with 2009 being the most expensive year at $1.4 billion.

The extent of the damage from the May 21 hail storm that pounded downtown Colorado Springs still is being assessed, Walker said.

Colorado'sFront Range is in "hail alley," which stretches from southeast Wyoming down to the Springs, Walker said. Hail season is considered from mid-April to mid-August.

"We usually count on three to five catastrophic hail storms," she said. Catastrophic is defined as $25 million in insured damages.

While the National Weather Service in Pueblo is forecasting warm sunny days for June. It also is forecasting 10 days of thunderstorms.

Walker said the recent hail events should be a walk-up call to check insurance policies and see what is covered and how much a deductible would be, and find out the limits of coverage.

"What is included and what is excluded?" Walker said. "If you have comprehensive auto coverage, flooding and hail are included. But for the home, flooding is often excluded, and you need separate coverage for that."

Walker also warned that the stormy season means many companies will be vying for business. A Colorado law, effective June 2012, is meant to protect homeowners against heavy-handed roof sales representatives, Walker said. It allows homeowners a grace period to cancel a contract with a roofer and says that the deductible will not be waived.

"You should be financially prepared as we head into peak months of June and July," Walker said.