Latest news with #haildamage
Daily Mail
5 days ago
- Business
- Daily Mail
Record rate hike by state farm ignites fury in blue state
State Farm has sparked fierce backlash by hiking home insurance rates in Illinois by 27.2 percent, adding $746 to the average bill. The insurer insists the hike is unavoidable, claiming it's paying out far more in claims than it collects in premiums in the state. For every $1 collected in the state in 2024, the company says it paid out $1.26. The year before, the sum it paid out was even higher, at $1.30. Hail damage is the main culprit, the company said, with Illinois trailing only Texas for the number of hail-related claims last year. Rising labor and material costs have also driven up repair expenses. But lawmakers have blasted the price hikes, which could hit policyholders as soon as August 15. Illinois Governor JB Pritzker (pictured) called the increases 'unfair and arbitrary', promising to work to deliver more protections for homeowners in the face of soaring costs . Illinois is one of the few states where insurers can raise rates without approval from regulators. The state has no meaningful rate review process for homeowners insurance, reported. This means that once a company files new rates with the Department of Insurance, that is typically the end of the story. State Farm already raised rates 12.3 percent in 2024 — and it is not alone. Allstate also hiked prices for policyholders in Illinois by 14.3 percent earlier this year, and 12.7 percent in 2024. With the latest increase, Democratic Governor Pritzker accused State Farm of raising costs in the state to subsidize losses elsewhere in the US. 'Hardworking Illinoisans should not be paying more to protect beach houses in Florida,' he said. Illinois House Speaker Emanuel Chris Welch also called the hike 'wrong.' But other lawmakers have questioned whether regulation to protect consumers from rising costs could end up driving insurers out of the market. Republican State Representative Jeff Keicher, who is also a longtime State Farm agent, used California as an example, saying that regulatory constraints have led insurers to flee the state. 'The worst thing we can do is force insurers to underprice and go out of business,' Keicher told The Chicago Tribune, 'and leave homeowners without a way to get their home fixed if the worst happens.' Several large insurers, including State Farm, have cut back or limited their coverage in California amid worsening climate disasters, leaving many people struggling to find home cover. Over half of Californians said in 2024 that they had been affected by rising premiums for property coverage or had been dropped by their insurer entirely . In the wake of State Farm's proposal for Illinois, lawmakers are fast-tracking a series of proposals designed to give consumers more protection. Last year, Pritzker signed legislation requiring rate review for large group health insurance, allowing the state to block excessive increases, reported. Now some lawmakers want to apply that same framework to home insurance policies where companies must justify hikes with years of data.
Daily Mail
6 days ago
- Business
- Daily Mail
State Farm sparks backlash in blue state with record rate jump
State Farm has sparked fierce backlash by hiking home insurance rates in Illinois by 27.2 percent, adding $746 to the average bill. The insurer insists the hike is unavoidable, claiming it's paying out far more in claims than it collects in premiums in the state. For every $1 collected in the state in 2024, the company says it paid out $1.26. The year before, the sum it paid out was even higher, at $1.30. Hail damage is the main culprit, the company said, with Illinois trailing only Texas for the number of hail-related claims last year. Rising labor and material costs have also driven up repair expenses. But lawmakers have blasted the price hikes, which could hit policyholders as soon as August 15. Illinois Governor JB Pritzker called the increases 'unfair and arbitrary', promising to work to deliver more protections for homeowners in the face of soaring costs. Illinois is one of the few states where insurers can raise rates without approval from regulators. The state has no meaningful rate review process for homeowners insurance, reported. This means that once a company files new rates with the Department of Insurance, that is typically the end of the story. State Farm already raised rates 12.3 percent in 2024 — and it is not alone. Allstate also hiked prices for policyholders in Illinois by 14.3 percent earlier this year, and 12.7 percent in 2024. With the latest increase, Democratic Governor Pritzker accused State Farm of raising costs in the state to subsidize losses elsewhere in the US. 'Hardworking Illinoisans should not be paying more to protect beach houses in Florida,' he said. Illinois House Speaker Emanuel Chris Welch also called the hike 'wrong.' But other lawmakers have questioned whether regulation to protect consumers from rising costs could end up driving insurers out of the market. Illinois Governor JB Pritzker called the increases 'unfair and arbitrary', promising to work to deliver more protections for homeowners in the face of soaring costs Republican State Representative Jeff Keicher, who is also a longtime State Farm agent, used California as an example, saying that regulatory constraints have led insurers to flee the state. 'The worst thing we can do is force insurers to underprice and go out of business,' Keicher told The Chicago Tribune, 'and leave homeowners without a way to get their home fixed if the worst happens.' Several large insurers, including State Farm, have cut back or limited their coverage in California amid worsening climate disasters, leaving many people struggling to find home cover. Over half of Californians said in 2024 that they had been affected by rising premiums for property coverage or had been dropped by their insurer entirely. In the wake of State Farm's proposal for Illinois, lawmakers are fast-tracking a series of proposals designed to give consumers more protection. Last year, Pritzker signed legislation requiring rate review for large group health insurance, allowing the state to block excessive increases, reported. Now some lawmakers want to apply that same framework to home insurance policies where companies must justify hikes with years of data. Increases will then be rejected if they are deemed 'excessive, inadequate, or unfairly discriminatory.' Instead of regulation, the insurance industry itself is pushing for measures to make properties more resilient against future natural disasters, including more comprehensive home construction standards.
CBC
7 days ago
- Climate
- CBC
Researchers chase storms, study fist-sized stones in Alberta's 'Hailstorm Alley'
Social Sharing Julian Brimelow holds up a replica of the mother of all hailstones — a lumpy white blob as big as your fist carrying the weight of two baseballs with the power to pulverize fields of corn into green-yellow mush. Brimelow and other researchers from Western University in London, Ont., are using it in their research to better understand and predict Alberta's prevalent hailstorm activity, and mitigate harm to people and property. Hail can be bad across the Prairies. But Brimelow says when it hits in Alberta, it hits hard. "It's much worse than I thought it could be in terms of damage potential," Brimelow said Tuesday at the project's open house at the Telus Spark Science Centre. "On the same day as the (2024) Calgary hailstorm, there was a storm farther south and that decimated six to seven-foot corn crops to the point that our team wasn't sure it was actually corn," he said. "It was that pummeled into the ground." WATCH | The Northern Hail Project surveys the damage caused by Calgary's recent hailstorm How a Canadian storm laboratory is investigating Calgary's hail damage 4 days ago The Canadian Severe Storms Laboratory at Western University in London, Ont., has dispatched a damage survey team to chase and investigate destruction from Alberta storms this summer. The 'Northern Hail Project' crew went out with the CBC's Acton Clarkin after a major hailstorm hit pockets of Calgary. "Hailstorm Alley" runs from High River, just south of Calgary, north to central Alberta. The area sees more than 40 hailstorms every summer, causing hundreds of millions of dollars in damage. Brimelow, executive director of the Northern Hail Project — a branch of Western University's Canadian Severe Storms Laboratory — said it's probably the most active hailstorm zone in Canada. A storm in Calgary last August brought significant hail, strong winds, heavy rain and localized flooding, affecting about one in five homes. The Insurance Bureau of Canada estimated the damage to the city, deemed the country's second-costliest weather-related disaster, at $2.8 billion. Hailstones as big as golf balls hammered the tarmac at Calgary International Airport, damaging planes at WestJet and Flair Airlines, and forcing them to ground 10 per cent of their fleets for repairs and inspections. Brimelow said such hailstorms are underestimated at one's peril. Several small animals and pets were killed in Calgary last year, he said, and an infant was killed in Europe in 2023. The research sees stones collected on scene, preserved in a mobile freezer, and later measured, weighed, photographed and perhaps replicated. "The more interesting stones we'll 3D scan and then we can make prints," he said. Copies of several realistic hailstones were on display at the open house, ranging in size from a walnut to a golf ball and one bigger than a large hand. "This is the new record-sized Canadian stone. This fell in 2022 near Innisfail," Brimelow said. "This is 12.3 centimetres across and nearly weighs 300 grams. This would have been falling at 160-plus kilometres an hour." The team's field co-ordinator, Jack Hamilton, said the size and shape of the stones provide researchers with information on what happens inside the storms. "It was long thought that the hailstone sort of goes through the storm in a washing machine cycle. But we're actually learning that it's probably just once, maybe twice, that the hailstone goes through the storm and it collects all of its mass in that one travel through," Hamilton said. "It gets bigger and bigger, and eventually gravity takes over and it falls. And it falls pretty fast." To get the stones, they first have to chase them. Hamilton said their chase vehicles have a protective coating against hail and are equipped with storm-locating radar and a lightning detector for safety.
Yahoo
18-07-2025
- Automotive
- Yahoo
Does car insurance cover hail damage?
If hail strikes your car during a storm, it could result in minor scratches or dings or a serious problem like a cracked window, windshield, or major body damage. Your auto policy may help cover the costs of hail damage, but you'll need a type of coverage called comprehensive insurance. In this article, we'll cover the basics of car insurance and hail damage, including how coverage works and the basics of filing a claim. This embedded content is not available in your region. Learn more: How does car insurance work? The basics explained. What type of car insurance covers hail damage? Comprehensive coverage is the type of car insurance that covers you against hail damage. According to 2022 data from the Insurance Information Institute, 80 percent of insured drivers purchase comprehensive coverage in addition to liability insurance, and 77 percent buy collision coverage. Here's a bit more about each of those coverages: Liability insurance: Helps pay for medical bills and legal expenses if you cause a crash that injures someone else or damages their property. Liability insurance is required by nearly every state. Collision insurance: Covers some costs of repairing or replacing your vehicle if it's damaged in a crash. Collision insurance isn't a legal requirement in any state, but most lenders require it as a condition of leasing or financing a vehicle. Comprehensive insurance: Kicks in if your vehicle is stolen or vandalized, or is damaged by a severe weather event (like hail, storms, hurricanes, floods, or earthquakes), a falling tree or object, or a collision with an animal. Like collision insurance, comprehensive insurance isn't state-mandated but is a common auto-lender requirement. Is there a deductible for comprehensive insurance? Yes, both comprehensive insurance and collision insurance typically have a deductible, which is an amount you'll have to pay out of pocket before coverage kicks in. (However, depending on your state and insurer, a deductible might not apply if you need your windshield replaced.) Choosing higher auto insurance deductibles often lowers your car insurance premiums, whereas lower deductibles usually come with higher premiums. Does liability cover hail damage? No, liability insurance doesn't cover hail damage. Liability coverage is required in most states and kicks in when you're legally responsible for a crash that injures someone or damages their property, while collision insurance (which isn't required in any state) covers hail damage. If you only carry state-mandated auto insurance, you'll have to foot the bill for hail damage on your own. How to file a car insurance claim for hail damage If your car sustains hail damage, you'll need to file an auto insurance claim for reimbursement. You can do so by following these steps: Check your policy and deductibles. Before starting a claim, check your policy to confirm that you have comprehensive coverage and make note of your deductibles. If the damage is fairly minor, repair costs could be lower than your deductible, in which case you wouldn't bother filing a claim. Contact your insurer. You can often initiate your claim by phone, online, or through a mobile app, depending on your insurer. Document the damage. Take photos or videos as evidence after your car is damaged by hail. You can send the images or video to your carrier or insurance adjuster after you've filed the claim. Get an estimate. Your insurance company will likely send an adjuster to assess the damage. However, some insurers require you to get an estimate on your own. Your insurance company will use the estimate to determine your payout. Have your car repaired or replaced. Once your claim is approved, you can take your car to whatever repair shop you choose. Your insurer will send the payment directly to the mechanic. If your insurer determines your car is totaled or damaged beyond repair, they'll cut a check for the value of the vehicle to you. Your insurer will subtract your deductible from any payout it makes. Up Next Up Next What is the average insurance payout for a hail-damaged car? According to State Farm data, the average insurance payout for a hail-damaged car was around $5,000 in 2021. Your exact payout will depend on repair costs (if the car is salvageable) or the car's actual cash value (if the car is totaled), and your deductible. Your payout will be capped at your policy's limit. Will my insurance go up if I file a claim for hail damage? Filing a comprehensive insurance claim for hail damage typically won't increase your premium, as you're not at fault. However, you could still see your rates rise after a major hailstorm or another severe weather event as insurers attempt to recover their losses. Insurers also adjust their risk models to estimate the likelihood of similar events following a major disaster, which can lead to higher rates. Learn more: How much does car insurance increase after an accident? How is hail damage repaired? If your vehicle has minor cosmetic hail damage, a body shop may be able to repair it using a technique called paintless dent repair. The repair shop will repair dents using tools to gently apply pressure to the backside and stretch the metal until the dent disappears without repainting or refinishing the surface. However, if hail causes the paint to chip away, more extensive repairs are usually needed. Your car will also require substantial repairs in some circumstances, like if the windshield shattered or your car doors or trunk won't open due to the hail damage. Can hail total my car? Yes, hail can total your car, particularly after a major storm. Your insurer will compare the estimated repair costs against your vehicle's cash value. If repair costs exceed the car's market value immediately before the damage, your insurance company will total the vehicle. You'll receive a check for the car's actual value minus the deductible, up to your policy's limits. Do I have to fix hail damage with insurance money? Your lender may require you to use insurance proceeds to repair hail damage if your car is financed or leased, since the lender has a financial stake in your vehicle's condition. If your car is totaled and you still owe money on it, your insurer will pay the lender first to satisfy the lien and send you any remaining funds. Your payout will go directly to the leasing company if you lease your vehicle. You have a lot more leeway in deciding how to use insurance money for hail damage if you own your car outright. If your car's hail damage is only cosmetic, you can usually pocket the check instead of using it for repairs as long as your policy doesn't prohibit it. Keep in mind, though, that even minor dents and dings will affect the car's resale value. If the damage poses a safety hazard (for example, if the windshield cracked) or affects how the vehicle operates, it's essential to get it repaired. Learn more: Does insurance cover windshield replacement? Is a hail damage claim worth it? To decide if a hail damage claim is worth it, you'll need to look at the extent of the damage and your deductible. If the damage is fairly minor and will cost less than your deductible to repair, filing a hail damage claim isn't worth it. But if the repair bill will significantly exceed your deductible, it's worth filing a claim with your insurance company. Tim Manni edited this article.
CBS News
02-07-2025
- Climate
- CBS News
Many across Minnesota experiencing more damage to roofs due to high winds
Aside from Minnesota nice, the other local constant is wind. Sean Lutgen, CEO of roofing company Lutgen Companies, says hail can weaken shingles which can cause leaks. He says the damage could be tricky to spot. "Without getting up on the roof, it's hard to see on the actual shingle," said Lutgen. "If they are seeing damage to their vehicles, probably have damage to their roof." While you pretty much have to spot hail damage from above, there are some ways to spot wind damage, from the ground. "Where the two ridges meet, there's a ridge cap that goes there. A lot of times we will see that as one of the first shingles that comes loose," said Lutgen. If a shingle comes loose, that also can lead to leaking. However, Lutgen says if hat happens, you don't always have to replace the roof. "You can just patch it in certain areas of the roof," said Lutgen. The key is catching the damage early. Lutgen said it's important to pay attention to what your roof looks like before there's any damage, getting a baseline and snapping some photos. "Wind damage has been more prevalent the last 8-9 months, than in the last decade or so," said Lutgen. Lutgen says catching damage early may also help decrease the amount you'll have to pay to get it fixed.
