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Colorado storms expected to leave US$145 price tag


June 22, 2004   by Canadian Underwriter


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Hailstorms which swept through the Denver area in early June should cost insurers more than US$145 million, predicts the Rocky Mountain Insurance Information Association (RMIIA).
The storms struck June 8-9, bringing hail and severe weather to the state, including a tornado touching down in Sterling, Colorado. RMIIA says 48,000 claims for damage to vehicles and house roofs are expected, with almost 28,000 of these for auto damage.
“Insurance companies are dedicating the extra resources needed to handle the onslaught of claims that continue to pour in on a daily basis,” says Carole Walker, executive director of RMIIA.
The hailstorm already ranks as the state’s fourth largest insured disaster, with the worst hitting in July, 1990 and causing US$625 million in insured damage. Notably all of the most costly storms have occurred in the Denver area (the region’s most populated region) and all have taken place in the last 20 years.
“We generally get 3-5 damaging hail storms during the peak months of June and July and they often are accompanied by flash flooding, high winds and tornadoes,” Walker notes. During the past five years Colorado has averaged between 35-40 tornadoes each year, although many either do not touch down or are in more remote areas.


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