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State Farm Paid Close to $1 Billion in Claims from April Storms

Source: State Farm

Posted on 31 May 2011

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While claims from May storms in Joplin, Mo., and elsewhere are in the process of being handled, State Farm announced it has already paid nearly $916,000,000 in claims to help its customers recover from damage caused by the relentless string of catastrophic storms in April and May.

The total is expected to continue rising as company claim representatives continue to work with policyholders in hard hit locations from Texas through the heartland to the East Coast.

If categorized as one event, the three most devastating April hailstorms, windstorms and tornadoes would be the seventh most costly homeowners’ catastrophe in the company’s 90-year history.

Through May, State Farm provided more than $2.5 billion in catastrophe claim payments to its customers across North America.

State Farm’s policyholders have reported nearly 300,000 Home, Business and Auto claims caused by the April and May events and more than 4,300 claims professionals have been deployed around the country to more than 147 separate claim offices.

The most recent storms and tornadoes that raked Texas and Oklahoma this week are not included in these figures. State Farm’s claims professionals continue to work side-by-side with local agents, and agents and staff from neighboring communities to serve customers in multiple locations. The company’s call centers are also aiding customers. As an example, State Farm’s Jacksonville Catastrophe Operations center handled more than 32,000 calls in one day in late April.

“The country has been hit hard with an unprecedented succession of horrible weather and horrific losses. From the claims volume and types and extent of damage, you can easily characterize these storms as a “Spring Hurricane.” Emergency responders, disaster relief volunteers and homeowner insurers are all contributing to the recovery effort,” said Brian Boyden, State Farm Executive Vice President. Boyden added, “We’re gratified to be there to help our neighbors recover—many have lost homes and seen the communities we both live in devastated.”