Violent Weather Pummels Texas in March; Regulators Call for Data on Claims, Lawsuits

April 4, 2016

Hail-packing thunderstorms pummeled North Texas twice in March causing hundreds of thousands of dollars in damage to automobiles and property.

Meanwhile, the Texas Department of Insurance is intent on gathering data on past weather-related property claims and litigation that has ensued as a result of those claims.

TDI’s action is in response to requests by the Senate Business and Commerce Committee and the House Insurance Committee seeking data related to weather-related property claims, the incidence of lawsuits related to those claims, and their possible impact on the insurance marketplace and insurance consumers.

As a result, TDI has developed a draft data call to collect information the agency does not already have available through its residential property statistical plan. TDI is seeking public and stakeholder comment on the draft data call.

Catastrophic Event

A Texas insurer trade group estimates that damage caused by hailstorms that rolled through the Fort Worth-area on March 16-17 will reach $600 million in auto and property claims. Mark Hanna, a spokesman for the Insurance Council of Texas (ICT), estimates $300 million came from vehicle damage alone and that at least 50,000 vehicles were damaged by hail that ranged in size from blueberries to tennis balls.

The storm damaged cars and homes from Fort Worth to Arlington. It may turn out to be the 12th costliest storm in Texas history, Hanna said.

Several damaged cars are parked at the Courtyard Marriott in Plano, Texas, Thursday, March 24, 2016. An early spring hailstorm in North Texas has broken windows in some homes and vehicles. (David Woo/The Dallas Morning News via AP)
Several damaged cars are parked at the Courtyard Marriott in Plano, Texas, Thursday, March 24, 2016. An early spring hailstorm in North Texas has broken windows in some homes and vehicles. (David Woo/The Dallas Morning News via AP)
TDI has determined that the March 16-17 weather event in Dallas, Tarrant, Johnson and Parker Counties is a catastrophe for the purpose of claims processing.

The designation allows for additional time for processing of insurance claims related to the identified catastrophe in the counties listed above. TDI said the catastrophe declaration is necessary due to the large volume of claims resulting directly from the event.

Insurers still must promptly acknowledge receipt of a claim and make appropriate assignments for the investigation of a claim, the agency said.

Policyholders should continue to receive the timely service that they expect and should not experience delays in receiving the benefits that they deserve because of the additional time, TDI’s bulletin noted.

Severe thunderstorms moved in and around the Dallas/Fort Worth area again on March 23 producing heavy rain, strong winds and hail as large as baseballs, according to the ICT reported.

Several businesses including the Arlington Police Department reported extensive damage to their fleet of vehicles from large hail knocking out windshields.

The storms hit the western area of Fort Worth around 4 a.m. with marble size hail. Larger hail was reported as the storm moved eastward toward Arlington.

Car windows and sky lights were knocked out in cities in Denton and Collin Counties. Plano appeared to be one of the cities hardest hit, according to the ICT.

Associated Press reports contributed to this story.

Topics Lawsuits Texas Claims Property

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Insurance Journal Magazine April 4, 2016
April 4, 2016
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