If it seems like the damage caused by tornadoes recently is greater than usual, you may be right. In fact disaster modeler Eqecat puts the number this year to date at more than twice a seven-year average. In light of that, insurers may be reconsidering coverage in storm prone states, according to a recent analysis published by Reuters. According to the article, homeowners may soon find themselves paying substantially higher rates or not being able to find coverage. The U.S. insurance industry lost nearly $26 billion on tornadoes and related storms in 2011, higher than the previous record. Moreover, Reuters notes, insurers have already lost as much as $2 billion this year.
(Image Credit: National Severe Storms Laboratory (NSSL) Collection)
