Reinsurance News

Midwest tornado reconstruction value estimated at $3.7bn: CoreLogic

15th December 2021 - Author: Matt Sheehan

Analysts at CoreLogic have estimated that the reconstruction value of residential buildings that were potentially destroyed in states hit by the recent series of tornados is $3.67 billion, with insured losses likely to exceed $1 billion.

corelogic-logoLast Friday, devastating tornadoes broke out across the states of Arkansas, Illinois, Kentucky, Mississippi, Missouri, and Tennessee.

The largest cities impacted by these tornadoes included Mayfield and Bowling Green in Kentucky, which is the state where the bulk of insured losses are expected to be recorded.

The most destructive storm tracked from Northeast Arkansas, through the Missouri Bootheel, across far Northwest Tennessee and through Central Kentucky spawning at least one long-tracked deadly tornado.

This tornado spanned nearly the entire path of the storm itself, over 250 miles leaving utter devastation in its path.

Preliminary data from CoreLogic shows Kentucky alone had 11,762 residential structures impacted and likely destroyed, with a total reconstruction value of $2.9 billion.

Analysts specified that this valuation is structure only, while a homeowners insurance policy also includes contents and additional living expense, meaning a full loss payout on an insurance policy could be double the structure reconstruction cost.

The next highest reconstruction value by state was for Tennessee, where 1,801 structures are thought to have driven a value of $455 million, followed by Arkansas with 667 structures and a value of $120 million.

KCC recently estimated that the total insured cost from the tornado outbreak will be around $3 billion, while re/insurance broker Aon agreed that it would likely be a multi-billion dollar event.

CoreLogic also noted that it was unusual to have such a long tracked, powerful storm produce strong and violent tornadoes, even though December tornados themselves are not rare.

And if the National Weather Service determines that 250-mile tracked tornadic event stayed on the ground continuously, it will go down in history as the longest tornado path ever recorded.

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