NEWS BRIEF

Pinching Insurance Pennies Can Help Consumers Tighten Their Belts in Bad Economy

July 31, 2008 — It’s estimated that most consumers could save more than 20% on insurance if they took simple steps such as raising deductibles, comparison shopping and taking advantage of discounts. More...

Home Inventory - Learn More

Winter Storms

Damage Estimates
Insurance Claims
Advice for Homeowners
Winter Driving

Damage Estimates

The insurance industry estimates the Blizzard of March 2003 was the most expensive winter storm from snow and ice damage in Colorado history.   The estimated price tag was at least $93.3 million from more than 28,000 claims filed ($104.1 million in 2007 dollars). Most of the larger carriers activated their emergency catastrophe teams who specialize in handling disaster claims. This estimate is for damage to homes and automobiles and excludes the large commercial building losses resulting from the blizzard. 

The lion's share of the damage was the result of wet, heavy snow causing collapses to roofs, porches, awnings, carports and outbuildings. There was also significant damage from downed trees and limbs, along with claims for wind, snow melt leakage, food spoilage and out-of-pocket living expenses for people forced out of their home due to storm damage. Most of the vehicle damage was due to being crushed rather than weather-related accidents.

"One of the biggest factors that has impacted the high insurance price tag of this storm is the rising cost to fix and rebuild homes in this current building market," says Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association. "The average cost per homeowner insurance claim is more than $3,500 and many homes were completely destroyed due to roof collapses and structural damage."

Colorado's losses due to winter-related storms:

1. $ 93.3 million in insured damages resulting from heavy snow and ice on March 18-19, 2003
2. $ 10.5 million in insured damage resulting from heavy snow and ice on Oct. 24-26, 1997.
3. $6.4 million in insured damage occurred from Sept. 20, 1995.
4. $4.9 million in insured damage occurred on Dec. 22-26, 1982.

In comparison: Colorado's most costly catastrophe in state history was a $625 million hailstorm that battered the Denver-metro area on July 11, 1990.

Back to Top

Insurance Claims

RMIIA offers the following advice to speed the insurance claims settlement: 

• Call your insurance agent or insurance company's 800#. Be prepared to give your agent or insurance representative a description of your damage. Your agent will report the loss immediately to your insurance company or to a qualified adjuster who will contact you as soon as possible to inspect the damage. Be sure to give your agent a telephone number where you can be reached.

• Take photos of the damaged areas. These will help with your claims process and will assist the adjuster in the investigation.

• Prepare a detailed inventory of all damaged or destroyed personal property. Be sure to make two copies - one for yourself and one for the adjuster. Your list should be as complete as possible, including a description of the items, dates of purchase or approximate age, cost at time of purchase and estimated replacement cost.

• Collect canceled checks, invoices, receipts or other papers that will assist the adjuster in obtaining the value of the destroyed property.

• Make whatever temporary repairs you can. Cover broken windows, damaged roofs and walls to prevent further destruction. Save receipts for supplies and materials you purchase. Your insurance company will reimburse you for reasonable expenses in making temporary repairs.

• Secure a detailed estimate for permanent repairs to your property and give it to the adjuster. The estimate should contain the proposed repairs, repair costs and replacement prices.

Serious Losses Will Be Given Priority. Even with many additional adjusters, it will take time to process the many damage claims being filed. If your home has been seriously damaged, your agent will do everything possible to assure you are given priority.

Back to Top

Advice for Homeowners

Standard homeowners or business insurance policies cover a wide range of winter-related disasters such as burst pipes, ice dams, wind damage, leaky roofs, and building collapse caused by the weight of ice or snow. Coverage for backup of sewers and drains also is available. Flood damage is excluded from most standard policies.

To prevent damage from the melting snow and from future storms:

• Keep your home warm. The temperature in the home should be at least 65 degrees to prevent the pipes from freezing.
• Watch for snow accumulation on the leeward (downwind) side of a higher-level roof, where blowing snow will collect. For safe removal that won't damage your roof, consult a roofing contractor for a referral.
• Snow or rain that freezes in gutters can cause an "ice dam," damaging ceilings as melting ice spreads under roof shingles. Keep gutters clean of leaves and debris to prevent this condition.
• Remove branches that become heavy with snow and icicles hanging from gutters and over walkways.
• As snow melts, water can back-up sewers and drains resulting in flooding. Local government officials should be notified if street drains are clogged.
• Stock up on fuel in case of a power outage, such as firewood or propane if you have a back up heat source.

Cold weather and frozen pipes

Back to Top

Winter Driving

Knowing what to do if you are involved in an accident can save lives and also make the claims process easier. During a winter storm a local jurisdiction may likely be on accident alert. That means if no one is injured and there is no alcohol or drugs involved, you need to move the vehicles to a safe location and exchange contact and insurance information.

At the Scene of an Accident

Follow these tips if no one is injured and the jurisdiction is under accident alert:

Make notes. Keep a pad and pencil in your glove compartment. Write down:

• the names and addresses of all drivers and passengers involved in the accident.
• license plate numbers
• make and model of each car
• driver's license numbers
• insurance identifications
• names and addresses of witnesses

Follow these tips if someone is injured:

1. Stop your car and find out if anyone is injured.

2. Call the police or highway patrol. Tell them how many people were hurt and the types of injuries. The police will notify the nearest medical unit.

3. Cover injured people with a blanket to keep them warm.

4. Try to protect the accident scene. Take reasonable steps to protect your car from further damage, such as setting up flares, getting the car off the road and calling a tow truck.

5. Ask the investigating officer where you can obtain a copy of the police report. You will probably need it when you submit your claim to your insurance company.

6. If necessary, have the car towed to a repair shop. But remember, your insurance company probably will want to have an adjuster inspect it and appraise the damage before you order repair work done.

7. Make notes. Keep a pad and pencil in your glove compartment. Write down:

   • the names and addresses of all drivers and passengers involved in the accident.
   • license plate numbers
   • make and model of each car
   • driver's license numbers
   • insurance identifications
   • names and addresses of witnesses
   • names and badge numbers of police officers or other emergency personnel.

If you run into an unattended vehicle or object, try to find the owner. If you can't, leave a note containing your name, address and phone number. Record the details of the accident.

Download brochures on winter driving and facts about liquid de-icer, provided by the Colorado Department of Transportation:

• Slick Tips: Colorado Winter Driving Handbook (1.33 MB) Acrobat PDF
• Liquid De-Icer Fact Sheet (931 KB) Acrobat PDF

How Medical Bills are Paid After an Auto Accident

When you buy auto insurance you need to think about what actually happens when you're in an accident and need to use it...

[more]

Back to top

Updated: February 28, 2007 1:52 PM
© Copyright Rocky Mountain Insurance Information Association
7951 E. Maplewood Avenue, Suite 130 • Greenwood Village, Colorado 80111 USA
(303) 790-0216 or Toll Free (800) 355-9524
Legal notice, Disclaimer & Terms of Use

Contact Us