RENT Magazine Q4 '21

A RECAP OF THE MOST PROMINENT NATURAL DISASTERS THIS YEAR To understand what type of data the insurance industry uses when making decisions on rates and coverage, here is a recap, as of this writing, of the most prominent weather-related events that the United States has had to deal with during the past year:

This year, 98% of the West Coast has experienced moderate to severe drought – the worst levels in the U.S. Drought Monitor’s 21-year history. 1

Hurricane Ida made landfall as a Category 4 storm. While damage is as yet unknown, one insurance publication estimates Ida could cost at least $15B. Insurer Liberty Mutual published a study showing that out of all Category 4 hurricanes, only 10% make landfall, but they contribute to 50% of all insurance losses. On the East Coast, tropical storms and floods are more prominent. In August, Tennessee experienced one of its most severe flash floods in recorded history, with over 17 inches of rain falling in less than 24 hours. 3 Winter storm Uri was the first billion-dollar disaster the world faced in 2021 with Texas sustaining the brunt of the damage. So far, the expected payout by insurers will total approximately $20B. In 2017, Hurricane Harvey resulted in a payout of approximately $19B for the state of Texas ($30B across the U.S). 2 Five out of six of California’s largest wildfires on record have happened within the past year, with the current Dixie Fire (the 2nd largest fire in California history) exacerbated by the drought conditions. 1

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