News

Nationwide: Stronger storms leading to more costly farm insurance claims

The vice president of agribusiness claims for Nationwide Insurance says the frequency and severity of storms are increasing.

Nick Anderson says claims data shows wind and hail account for nearly 35% of all farm-related damage annually.

“For vehicle insurance, in 2020, the average hail repair from a farm owner perspective averaged about $3400 to $3500.”  He says, “You fast forward to this year, and it’s almost $5000 in damage.”

He tells Brownfield that costs to repair farm machinery have risen sharply since 2020, but so have the number of vehicles damaged beyond repair.

“In 2020, we saw just shy of 13% of vehicles that would be totaled out for hail damage.”  He says, “Today, due to that increased frequency and severity, almost 17% of vehicles are considered a total loss.”

To give farmers more notice ahead of approaching storms, Anderson says Nationwide has developed an early warning text alert system for hail and high winds.

“Whether that’s winds of 50 miles an hour, or gusts over 58 miles an hour, or hail that’s predicted to be over 1 inch in size, we can give you a heads up.”  He says, “Whether that’s your equipment, or you have livestock, or whatever it needs to be, it’s a way for us to help be proactive in managing any damage that could potentially be coming.”

Anderson says the number of catastrophic storms responded to by claims agents has also increased substantially over the past decade.

AUDIO: Nick Anderson – Nationwide Insurance