From 1991 to 2010, hurricanes and tropical storms made up 44% of total catastrophe losses, followed by tornado losses at 30%, winter storms at 7.4%, terrorism at 6.8%, earthquakes and other geologic events at 5.1%, wind/hail/flood at 4.1%, and fire at 2.2%. Civil disorders, water damage and utility services disruption combined represented less than 1%. Each year about 6% of homeowners file claims. (Source: I.I.I.)

Flooding is the most common natural disaster; however, coverage for flood (defined as rising water) is excluded under most standard homeowners policies. For cars, flooding is covered under the comprehensive portion of most standard auto policies. Homeowners and renters who live in high-risk flood plains and whose communities participate in the National Flood Insurance Program, or NFIP (administered by the federal government) can buy special flood insurance through a company or agent.

Quick Links:
Rocky Mountain Region Statistics | National Statistics | What to Do in Case of a Catastrophe
Disaster Planning | Hail | Wildfire | Flood | Lightning | Tornadoes & Wind | Earthquakes
Winter Storms | Terrorism and Insurance

Rocky Mountain Region Statistics

• 2009 was Colorado's most costly severe weather season adding up to more than $1.4 billion in insured losses with one July storm ranking as the state's most expensive insured disaster in actual insurance claims paid out with insured losses totaling $768 million in claims.

• When adjusted for inflation, the July 11, 1990 hailstorm still tops the July 20, 2009 storm if compared in today's dollars. The 1990 storm resulted in $625 million in actual dollars paid out, but when adjusted for inflation, it totaled $1.04 billion in 2010 dollars.

• Windsor, Colorado experienced a tornado and hail storm in May 2008 causing an estimated $196 million in insured losses when adjusted for inflation.

• The most expensive wildfire in Colorado state history was the September 2010 Fourmile Canyon Fire that burned 169 homes and other personal property in the foothills just northwest of Boulder. Damage estimates totaled $217 million from insurance claims that included smoke damage, additional living expenses, damaged and destroyed homes, as well as personal belongings and vehicles.

• The overall estimated cost of the 2002 Iron Mountain, Coal Seam, Missionary Ridge and Hayman Fires in Colorado is $70.3 million in insured losses ($84.7 million in 2010 dollars). Companies took in about 1,236 claims for the Hayman and Missionary Ridge Fires at an estimated cost of $56.4 million.

• In 2000, wildfire caused an estimated $140 million in insured losses to some 220 homes in Los Alamos, New Mexico ($175.5 million in 2010 dollars).

• The blizzard of March 2003 was the most expensive winter storm from snow and ice damage in Colorado history. The estimated price tag was nearly $93.3 million ($110.3 million in 2010 dollars) from more than 28,000 claims filed.

• In June of 1990, a tornado touched down in Limon, Colorado causing an estimated $20 million ($32.9 million in 2010 dollars) in insured damages.

• A hailstorm in Albuquerque, New Mexico, on October 5, 2004, caused about $39.7 million ($45.4 million in 2010 dollars) in insured losses.

• May 10, 2005, Hobbs, New Mexico's hailstorm caused approximately $21 million ($23.2 million in 2010 dollars) in insured losses.

• In June 2005, Lovington, New Mexico experienced $13.7 million ($15.1 million in 2010 dollars) in claims resulting from hail.

• Colorado's most costly catastrophes have primarily been hail storms over the Denver-metro area (largest concentration of population and, therefore, property damage).

Most Costly Catastrophes in the Rocky Mountain Region
(in order of cost)

*2010 estimated costs calculated by the Insurance Information Institute according to the consumer price index.

Top Catastrophes in the Rocky Mountain Region
(in order of occurrence)

*2010 estimated costs calculated by the Insurance Information Institute according to the consumer price index.

National Statistics

• 2005 was the most costly year on record for the insurance industry, in terms of natural disasters. The year saw 27 named tropical storms, 15 of which were hurricanes.

• The most costly catastrophe in the United States was August 2005's Hurricane Katrina. Prior to that, 1992's Hurricane Andrew and the September 11, 2001 terrorist attacks were the most costly insured events.

• The 1994 Northridge earthquake in California has been the most costly earthquake to date. It measured 6.8 on the Richter scale, resulting in 60 deaths, 12,000 injuries, and destroyed more than 8,000 homes.

• Approximately 1,200 tornadoes strike the U.S. each year.

Ten Most Costly Catastrophes in the United States

*The National Flood Insurance Program paid $15.6 billion in Katrina claims, in addition to the $41.1 billion paid by private insurers.

Sources: Insurance Services Office, Inc. (ISO) | Insurance Information Institute

The U.S. Catastrophe Record 2001 - 2010

The following chart shows the number of catastrophes causing insured property losses of at least $25 million.

Sources: Insurance Services Office, Inc. (ISO) | Insurance Information Institute

What to Do in Case of a Catastrophe

Residents evacuated from their homes should contact their insurance agents or companies immediately and let them know where they can be reached. As adjusters are allowed into impacted areas, they will want to go in with their policyholders to access the extent of the damage. In the event of a catastrophe situation, many insurance companies set up 24-hour emergency hotlines.

Company claims adjusters, many equipped with laptop computers and portable phones, will start writing checks to pay the cost of temporary living expenses for people left homeless by catastrophes and to begin the rebuilding of damaged homes. Some companies will open special claims centers to assist their policyholders. Contact your agent or company if you need additional living expenses while you are out of your home.

Keep receipts.
Out-of-pocket expenses during a mandatory evacuation are reimbursable under most standard homeowner policies.

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 a qualified adjuster who will contact you as soon as possible to inspect the damage. Again, be sure to give your agent a 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.

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 company will reimburse you for reasonable expenses in making temporary repairs.

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

Serious losses will be given priority.
If your home has been destroyed or seriously damaged, your agent will do everything possible to ensure that you are given priority.

Disaster Planning