Examples of Catastrophic Losses

Catastrophes, as defined in the insurance industry, refer to severe disasters for which claims are expected to reach a high dollar value. Catastrophic losses are of critical concern for many as entire families’ lives are completely upended by destruction, leaving their financial situation completely in question. For more information about catastrophic losses in regards to your insurance claim, please reach out to a San Diego insurance attorney from Dawson and Rosenthal today. 

Catastrophes In Context

Catastrophic losses are defined as losses that are larger and more severe than usual as a result of a severe event. There are a number of examples of this occurring throughout the United States of America due to its rich and diverse geography. Oftentimes, catastrophic losses are serious, random, and sudden without any foresight.

Hurricanes 

The consequences of Hurricane Ian have captured international attention due to the depth of destruction brought by the extreme weather event. 2.5 million people were evacuated from their homes when many feet of storm surge water flooded Florida’s coast. During this event, $60 billion or more in private insured losses had been caused, making it the second-largest disaster loss event on record. 

While some on the West Coast think that they may be in the clear, experts warn that San Diego and southern California are likely to see increasingly serious storms and hurricanes in the coming years. Hurricanes are known to ruin houses, destroy the engines of cars, and leave communities without transportation access for weeks.

Flash Floods

Flash floods are a particularly common weather event in northern Arizona but are likely to occur in many other parts of the country. As large amounts of water are unable to be absorbed by arid grounds in a short period of time, the water travels at large speeds – glossing over asphalt and dry dirt. 

Flash floods are known to cause extensive damage to communities. Loss of life, home damage, automobile damage, and more threaten community members on an annual basis in the southwest. According to the United Nations’ most recent climate report, flash floods are set to become much more likely in the coming years. 

Earthquakes

The Earth’s tectonic plates also threaten many citizens across the nation. Earthquakes caused by the shifting of the planet’s underlying geological formations have the potential to wreak havoc on many regions in the US, most particularly California and surrounding areas. As recently as 2019 did the Golden State see a 7.1 magnitude earthquake that caused $40 million in insured losses in the sparsely-populated Ridgecrest City area. 

Toppling buildings like a house of cards, earthquakes are some of the most devastating catastrophes experienced in the US. Earthquakes are known to leave vast populations without a place to live. 

Wildfires

Another one of the most prominent causes of catastrophic losses in much of the US is wildfires. The drought-like conditions of the American west have made wildfires increasingly common and serious in recent years. California, Arizona, Oregon, and Washington have been some of the hardest-hit states as flames engulf the livelihoods of local residents, costing billions of dollars in losses. 

Experienced a Catastrophic Loss? Call Dawson and Rosenthal 

Dawson and Rosenthal employ a number of San Diego insurance lawyers who are ready to help you and your family recover what has been lost. The unfortunate circumstances that surround catastrophic events oftentimes mean that families have nowhere else to turn, and having an insurance claim delayed or denied only adds to the stress. Allow our firm to help guide you on the path to recovery. Send us a message or call us today at (866) 937-3820 to speak with our bad faith insurance attorneys.