Oklahoma tornado insurance to top $2 billion?

Speaking in the wake of the tragic storm, which affected 33,000 people in the town of Moore, John Doak, Commissioner of the Oklahoma Insurance Department, warned that the total damage could be worse than the tornado that struck Joplin, Missouri in 2011.

Photo: State Farm

Up to 13,000 homes were damaged or destroyed by the tornado, which left a 17-mile long path of destruction and killed 24 people. As the local community recovers from the sad loss, 2,705 insurance have been filed.

Photo: State Farm

John Wiscaver, vice president of public affairs for Oklahoma Farm Bureau Insurance, told the BBC “the impact of this event from a property damage standpoint would be similar to Joplin”. The 2011 tornado caused over $2 billion in insured losses.

Many renters who were affected by the storm, though, may not have insurance cover for the damage to their homes.

Indeed, 98 per cent of homeowners in America have home insurance, compared to only 70 per cent of tenants.

Photo: U.S. Department of Defense

“There is far too large a percentage nationally in the US of people who rent but do not get renters insurance,” Mr Wiscaver added, because they mistakenly believe they are covered by their landlords.

Photo: Official U.S. Air Force

Moore Mayor Glen Lewis announced on Wednesday that he would propose an ordinance to modify building codes to require every new home in the area would have a reinforced tornado shelter, adds The Daily Mail.