LARGE SWATH OF U.S. FACES WINTER STORM LOSSES: WHAT INSURANCE COVERS AND HOW TO RECOVER

The following information was released by the Insurance Information Institute:

Winter storms swept through a large swath of the U.S. this weekend, bringing heavy snow, ice, and freezing temperatures, and leaving homeowners, drivers, and businesses to contend with property damage, financial losses, and other disruptions.

Winter storms caused nearly $6 billion in insured losses nationwide in 2022, the second-highest year on record for winter storm insured losses in the last 10 years, according to Aon. The third costliest winter event since 1950 occurred in December 2022, amounting to $3.5 billion in insured losses. Winter storms included snow, ice, freezing, and flooding. In comparison, the 2021 Polar Vortex, which primarily affected the Midwest, Great Plains, and Texas, caused roughly $18.6 billion in insured losses, illustrating how costly winter weather events can be.

For those affected by the storm, understanding how insurance coverage works can help speed recovery and reduce financial stress. Homeowners, drivers, and business owners each have different types of coverage that may apply to damage caused by snow, ice, wind, or freezing temperatures. Knowing what is included in your policy, what is optional, and how to document losses can make the claims process smoother and help ensure you get the support you need.

Homeowners:

If your roof, siding, or pipes are damaged during the storm, your homeowners insurance can help cover the cost to repair your property. Standard policies typically cover:

Structural damage caused by heavy snow, ice, or wind.

Water damage from burst pipes caused by freezing temperatures.

Additional living expenses if your home becomes uninhabitable while repairs are made.

Homeowners should document all damage and notify their insurance provider promptly. Reviewing your policy for coverage gaps, including endorsements for flooding or sewer backup, can help you prepare for future winter storms.

Auto Insurance:

If your car is damaged by ice, snow, or falling branches, your auto insurance can help cover repairs depending on your coverage:

Liability coverage (required in most states) helps pay for damage you cause to others.

Collision coverage (optional) helps pay for repairs to your car after an accident.

Comprehensive coverage (optional) covers damage from non-collision events such as falling branches, hail, flooding, or ice and snow.

Drivers should document all damage and notify their insurance provider promptly. Comprehensive coverage is optional, but about 80 % of insured drivers include it in their policies to protect against weather-related and other non-collision damage.

Businesses:

If your business property, equipment, or inventory is damaged, business interruption insurance can help cover lost income and ongoing expenses while repairs are made. It can include:

Lost profits and ongoing costs such as rent, utilities, and payroll.

Extra expenses to continue operations, such as renting temporary space.

Businesses should document all property damage and notify their insurance provider promptly, keeping receipts for any emergency expenses. However, standard policies do not automatically cover power outages, supply chain disruptions, or government-mandated closures unless additional coverage has been purchased. Reviewing your policy can help identify gaps and guide recovery efforts.

"Winter storms can cause significant losses for homeowners, drivers, and businesses alike," said Loretta Worters, vice president, media relations, Triple-I. "Understanding your insurance coverage, what is included, what is optional, and where gaps might exist, is key to protecting property and finances during these events. Planning ahead, investing in mitigation measures, and building resilience can help reduce the impact of future storms and speed recovery."

About the Insurance Information Institute

Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers serving regional, national and global markets.

About The Institutes

The Institutes are a global not-for-profit comprising diverse affiliates that educate, elevate and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes' nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting and preventing losses to create a more resilient world.