Insurance losses from tornado outbreak may hit $6 billion: RMS
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Tornadoes that struck the U.S. Midwest and Southeast last month likely will result in insured losses of $3.5 billion to $6.0 billion, according to catastrophe modeling firm Risk Management Solutions Inc.
The April 25-28 tornado outbreak may be the costliest severe convective storm event ever recorded in the United States, RMS said Tuesday in a statement. An estimated 305 tornadoes touched down during the period, which is nearly double the annual April average of 161 tornadoes, Newark, Calif.-based RMS said.
The insured loss estimate includes losses in Alabama, Georgia and Tennessee, among other states, and coverage affected includes commercial, auto and personal lines.
Alabama hit hardest
The worst-affected state, Alabama, accounted for about 70% of the insured losses, according to RMS.
Earlier this month, catastrophe modelers AIR Worldwide Corp. and EQECAT Inc. both estimated insured losses from the series of tornadoes could range from $5 billion to $7 billion.
RMS said a key contributor to the size of the insured losses was the heavily populated nature of areas that were hit the hardest.
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