Iowa And Nebraska Storms Lead To 10,000 Claims

An estimated 10,000 claims have been filed with insurance companies for storm damage from the wind, rain and hail storm that passed through Iowa and Nebraska Friday evening and early Saturday.

The estimate is based on State Farm Mutual Insurance's 2,270 claims in the two states so far and the fact that the company has about a one-quarter share of the homeowner insurance market in the region.

The 1,160 claims in Nebraska are clustered around Omaha and Bellevue, nearly all for wind damage to structures, said State Farm spokesman Chris Pilcic. Some homes are not habitable.

Iowa's 1,110 claims are mixed, with about 620 for damage to autos, mostly for hail, and 490 to homes and other structures from wind and hail, he said Monday.

Allstate Insurance spokeswoman Stephanie Howell said the company's national catastrophe team decided Saturday to send people to the area to support local offices as they receive and process claims.

"It seemed to have hit the heartland pretty good," Howell said. Agents from the area reported that the damage seems scattered, with a few homes damaged severely and others nearby spared. She didn't have a count of claims so far.

Six tornadoes touched down in western Iowa and eastern Nebraska, the National Weather Service said, with three causing significant damage. Hail also left damage scattered across Iowa, Pilcic said.

People who lost electrical power in Friday's storm - including an estimated 76,000 Omaha Public Power District customers - may be able to add the cost of spoiled food to their claims, depending on the insurance policy, said State Farm's Pilcic.

But the value of spoiled food alone may be less than a policy's deductible, so filing a claim for that cost may not be economical.

More claims for storm damage may yet come in because some people don't file claims right away, Pilcic said. Some may not notice the damage right away, and others may be talking with repair companies before filing claims, for example.

Des Moines-based Farm Bureau Financial Services expects that it will continue receiving claims this week from clients affected by last week's weather, said company spokeswoman Nancy Wiles. But it's still too early to estimate how many of its policyholders have filed claims, she said.

"We have teams on the ground right now, and we still are getting reports coming in," Wiles said. "We've called in additional reinforcements to help out."

While claims adjusters and other insurance experts pick through the damage of the most recent event, State Farm's Pilcic said it's best for policyholders to report claims "as quickly as possible."

"You certainly don't want to wait. Other rain may cause additional damage. You want to start the repair process as quickly as possible," he said.

USAA, which serves military-related clients, has fielded about 1,700 claims from the storm, spokesman Rich Johnson said, especially for clients in the Bellevue, Nebraska, area connected with Offutt Air Force Base.

Homeowner policies do not cover flooding, which is sold through a separate federal program for flood-prone areas.

Insurance companies have extra claims adjusters in the area so property owners can begin the process of filing claims, having property inspected, receiving settlements, hiring contractors and restoring their property.

Pilcic said that State Farm sets rates to cover expected future claims, not to make up for past losses, and that many other factors besides individual claims influence premium rates. Frequency of tornado and hail damage over a period of years in a certain region would be a factor, for example.

It's up to the policyholder to decide whether to file a claim, he said.

"Although a policyholder's loss history can influence future premiums, our policyholders are entitled to rely upon their insurance policy when a loss occurs," Pilcic said. "We encourage any policyholder questioning whether or not to file a claim to consult a State Farm agent in order to assist them in making an informed decision."

He said people should be wary of door-to-door repair offers from people touring damaged neighborhoods. Working with a contractor you know or who is recommended by people you know is better, insurance companies say.