Many victims of U.S. tornadoes weren't insured
An analysis by the Associated Press shows that despite living in an area of the country prone to severe storms, many of the victims of this and last month's tornado outbreaks didn't have enough homeowners insurance coverage.
The AP ranked the 50 states by the percentage of homes that had insurance that covered wind damage. According to the report, Mississippi ranked second in terms of uninsured homes despite ranking fourth on a list of states to experience the most tornado activity in recent years. Likewise, Arkansas ranked fourth on the uninsured list despite seeing the 10th highest number of tornadoes in the past five years.
The report said many of these homeowners had to rely on government assistance in lieu of homeowners insurance policies, putting a drain on federal finances. Arkansas' Insurance Commissioner said some locals find it hard to afford the coverage since many of their homes are in high-risk areas or aren't entirely up to standards.
Residents who do have homeowners insurance coverage may see their premiums increase, said a report in the Omaha World-Herald. This year served as the bookend to a period of severe storm damage, which could increase rates, said the report.
Related Home Insurance Articles:
- Homes destroyed by Nevada wildfire May 23, 2012
- Researchers hope to better understand tornado damage May 22, 2012
- Total costs from Minneapolis tornado reach $80 million May 21, 2012
- Analysis shows more than $2B of insurance claims from Joplin tornado May 18, 2012
- Recovery continues for Michigan tornado victims May 17, 2012
