By Ryan DevereauxFor Newsweek The state farm insurance company that is the largest provider of flood insurance in the U.S. is reporting that the flood insurance costs for the past 12 months have more than doubled from the previous 12 months, as more than half of the flood damage is being caused by extreme weather.
The company, which has approximately 4,000 employees in the United States, told Newsweek that flood insurance premiums have increased by almost 20% from last year.
State Farm’s Insurance Administrator Tom Tingley told Newsweek he was not surprised by the news, as the company has been forecasting rising flood insurance prices for years.
“There’s always a way to raise premiums,” he said.
“It’s always been that way.”
Tingley also said that he believes that rising flood costs are due to the “weather event” of El Niño, which is typically the second or third strongest on record.
However, he said that this year’s El Niño is the most extreme and destructive on record, and that the weather has contributed to rising flood risk.
“I think there’s some overlap, but we do see a lot of El Niños,” he told Newsweek.
“We’ve had a lot more of these storms, more intense storms, and we’ve had the highest rainfall and flooding, both on the coast and in other places.”
Tigard, ColoradoThe company reported that it is facing a record-breaking number of flood claims.
The company said that flood rates have increased almost three times since January 1, the date that the government started reporting flood insurance claims.
The number of claims filed in the state rose by nearly 20% compared to last year, with about 60,000 flood claims filed.
According to State Farm, flood claims in Tigard increased by more than $6 billion over the past year, to more than 6,000,000 claims, or roughly 25% of the company’s total claims.
According to Tingle, that is more than double the rate of increase seen in most of the state’s other flood areas.
“In terms of the impact on Tigard, the impact is staggering,” Tingling said.
“[The flood insurance rate] is over a billion dollars.
We had about 4,500 claims, but now we have over 10,000 [claims].
We had less than 10,400 when we had 4,200.
And we have about a billion.”
The company also reported that a record number of storm-related claims have been filed in Colorado, with nearly 5,000 storms being registered in the past week alone.
The state’s insurance commissioner, Tom Graves, said that while he was pleased with the increase in flood claims, he also has concerns about how the government is collecting flood insurance information.
“The flood data that is collected is not being processed correctly,” Graves said.
Graves said that the number of storms being reported is being sent to a national database for processing, which could lead to errors in the data.
“We have the highest rate of false information in the nation,” Graves added.
“That’s why we need to have a data-collection system that can process this information accurately.”
Turing said that since January, the average flood insurance claim filed in Tigards county has increased by about $2,000 per claim.
The average annual increase in claims in the entire state of Colorado is $10,800 per year, according to Tingingley.
Tigards insurance commissioner also said he is concerned that people are getting too much flood insurance for their homes.
“Our goal is to keep flood insurance affordable for everybody,” Graves told Newsweek, adding that he wants to see people using the information that they are collecting to make better decisions.