El Paso still counting cost of storm

On September 16^th last year a hail storm hit the city causing extensive damage to homes, businesses and cars across the city but with the vast majority of damage centered around East Side. Around 20,000 cars and 10,000 homes were damaged according to the Insurance Council of Texas, which amounted to $150 million.

These figures were backed up by local insurance providers.

Allstate Insurance reported 6,700 auto insurance claims in El Paso compared to 270 in the entire year before the September storm, a 2,600 percent increase. State Farm reported 8,434 insurance claims on cars and 8,892 on homes, all were directly related to the hail storm.

“We're still getting claims (filed) on homes," Evelyn Nishino, a Dallas-based spokeswoman for State Farm, told El Paso news provider El Paso Times.

Despite the $150 million worth of damage, insurance providers have confirmed that it is unlikely clients will see a rate hike in the wake of the storm.

Allstate told the El Paso Times that insurance rates are based on a historical assessment of risk, which is constructed using several factors, so a one-off event in one year or even two is unlikely to impact rates.

Meanwhile, El Paso news media are reporting that the storm, although causing stress and anxiety for El Paso residents and perhaps affecting the bottom line of insurance providers, has had a positive outcome for many local businesses, notably those involved in auto repairs and roofing repairs.

The owner of Oscar's Roofing, Richard King, told El Paso news media that he has seen a huge increase in people making bookings for roof repairs, and his order books are filled right up to October of 2010, with more calls being taken every day. But local businesses have been entirely out paced by demand and many have reported a rush of out-of-town businesses setting up temporary shop in El Paso.

Most of those businesses came into El Paso toward the end of last year and are now beginning to leave, King, who is also vice president of the Border Roofing Contractors Association of El Paso, told El Paso news provider El Paso Times. He added that he expects business from the storm damage will continue for around the next two years as companies work to match demand.

Victor Lopez also spoke to the El Paso Times, he reported that he’d seen his business in auto body repairs more than double since the storm hit.

Although El Paso’s damage by the storm, based on insurance claims, seems to have been the worst, other towns were affected as well. Based on one insurance companies figures, El Paso had an increase in claims of over 2,000%, while Lubbock followed with 1,849%, Houston had an increase of 857% and Round Rock saw a 855% - this according to data released by Allstate Insurance.