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April Storms Cost State Farm Nearly One Billion Dollars

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April Storms Cost State Farm Nearly One Billion Dollars

State Farm recently reported that the storms which occurred across the Midwest have cost the company nearly one billion dollars, and they are expecting that amount to significantly increase.

On May 27, State Farm announced it has already paid out 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.

This figure does not even include claims that were made in the aftermath of the tornadoes that plagued Joplin, Mo.

In a press release, Brian Boyden, State Farm Executive Vice President said,

“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.”

Hurricane Season Will Be Active

However, not only will the claims from Joplin, Mo. increase this amount, but the National Hurricane Center is predicting a very active season as well.

So, by the time State Farm is finished processing the claims from these so-called “Spring Hurricanes,” it is very likely that the insurance company will have to start processing claims from actual Hurricanes.

This year, forecasters are expecting the storm season to have up to 18 named tropical storms, with three to six of them being major hurricanes.

Rick Knabb, the Weather Channel’s hurricane expert, recently reported that five major U.S. cities are long overdue for hurricanes. These cities are Honolulu, HI; New York, NY; San Diego, CA; Savannah, GA.; and Tampa, FL.

If a strong hurricane were to hit one of these cities, it could easily double the amount of claims State Farm would have to pay out.

With the possible onslaught of tropical storms, State Farm better be prepared to reach even further into their deep pockets.

Originally published on

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Ryan is the founder of Top Secret Writers. He is an IT analyst, blogger, journalist, and a researcher for the truth behind strange stories.
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Mark R. Whittington, from Houston, Texas, frequently writes on space, science, political commentary and political culture.

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