Most of us look forward to the end of winter and toward spring and summer. While winter often causes a lot of damage to homes and businesses, so does spring. Or so says the Seasonal Smarts Digest released each year by Farmers Insurance.
Looking at five-years worth of claims, Farmers notes spring is particularly hard on homes:
• 38% of claims occur in the spring months are due to hail
• 20% of claims occur in the spring months are due to wind
• 17% of claims occur in the spring months are due to water
Hardest on homes — however — is hail. The PIA Western Alliance state of Montana sees the second largest amount of damage in the nation to this kind of weather and it’s only one percentage point behind the nation’s leader, Nebraska.
1. Nebraska — 80% of home claims were hail damage
2. Montana — 79% of home claims were hail damage
3. Kansas — 69% of home claims were hail damage
4. Texas — 62% of home claims were hail damage
5. Oklahoma — 61% of home claims were hail damage
6. Missouri — 57% of home claims were hail damage
6. Colorado — 57% of home claims were hail damage
7. Iowa — 53% of home claims were hail damage
8. Arkansas — 45% of home claims were hail damage
9. Indiana — 43% of home claims were hail damage
A Google search — here — shows just how serious hail damage is in the Treasure state.
The damage isn’t restricted to homes. Crop damage in Montana because of hail is also serious and costly. Worse, it is growing. Five-years ago — 2013 — saw record hail storms and untold damage from hail. In 2016 the state’s department of agriculture reported 266 reports of hail that was 3/4 of an inch in size.
Montana — fortunately — gives farmers an affordable option to protect them from hail damage. It’s the state’s 101-year old Montana Hail Insurance Program. It was established when private insurers began abandoning this kind of insurance.
Program spokesman Walt Anseth said, “It helps farmers cover their cost of production in the event that they have a bad year, and they can recoup some of their costs even though they don’t have a commodity to take to the elevator to sell. We can’t control the weather, but we can help them minimize the risk to their operation.”
Anseth said the reason Montana’s program is so successful is because it is one that has farmers protecting each other. “It’s their program; we just administer it. The producers pay premiums, and if they have a loss, it’s their money that goes back to them. We have a 100-year history of all claims always being paid,” he said.
Source link: PropertyCasualty360.com, Insurance Journal, Farm Flavor