HazardHub identifies the highest winter hazards and areas of vulnerability

SAN MATEO, Calif.–(BUSINESS WIRE)–Guidewire (NYSE:) HazardHub releases winter risk data to help insurers and property owners across the United States better understand and prepare for cold weather threats. Last year, winter storms in the United States resulted in approximately $3.4 billion in insured losses. Last year, in 2022, nearly $6 billion in losses were recorded from winter storms, which was the second highest recorded loss in the last decade.

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HazardHub’s risk data and maps detail extreme cold and winter weather risks at the national, state, and local levels, down to the specific property address level. HazardHub offers more than 1,000 data points and risk scores for climate risks and extreme weather events.

Freezing Temperatures Across the US

According to Guidewire HazardHub data, 31.4 million housing units in the US will experience more than 30 days of winter temperatures below 32 ºF this year. Of that, more than 10.3 million housing units will experience more than 50 days of below freezing temperatures this winter.

The main factors that contribute to the coldest regions are latitude, elevation, and geography. The states on the northern border, in the Rockies, or with higher areas, as well as in Alaska, recorded the coldest temperatures.

Top States with Freezing Temperatures

According to Guidewire HazardHub data, the top five states with the lowest average annual winter temperatures are:

1. Alaska: 2.6 °F (-16.3 °C) Average Winter Temperature
2. North Dakota: 12.2 °F (-11.0 °C)
3. Minnesota: 12.4 °F (-10.9 °C)
4. Maine: 16.8 °F (-8.4 °C)
5. Wyoming: 21.2 °F (-6.0 °C)
6. Montana: 21.2 °F (-6.0 °C)

Maximum Danger During Winter

According to an analysis of Guidewire HazardHub data, the most dangerous Winter Risks, based on claim loss potential, extent of damage, and frequency, are:

Frozen Pipes

Freezing temperatures cause the water inside the pipes to expand, leading to cracks and bursts that result in extensive water damage to floors, drywall, and the interior of the home. This risk leads to one of the most frequent winter insurance claims. Mitigation measures include insulating pipes, maintaining indoor heat, allowing faucets to run during cold snaps, and draining water lines in vacant properties.

Top Five States for Frozen Pipe Risk

1. Nebraska
2. Vermont
3. North Dakota
4. Minnesota
5. Wisconsin

These states have the highest percentage of homes and structures rated as an ˜F’ grade according to the HazardHub Frozen Pipe Risk score. According to HazardHub data, 21% of US homes face the risk of frozen pipes during the winter. the average cost of a frozen pipe insurance claim is approximately $18,000, cover damages to flooring, drywall, interior, and plumbing systems. According to the Insurance Information Institute, water damage (all seasons) and freezing incidents account for nearly 24% of all homeowner’s insurance claims.

Snow Load (Roof Damage)

Accumulated snow and ice puts a lot of stress on roofs, putting the structure at risk of collapse or collapse, especially in older buildings or those with flat roofs. States like Alaska, Maine, and Vermont are experiencing the highest risk of heavy snowfall. Regularly clearing snow from roofs, maintaining gutters, and trimming overhanging branches can prevent this costly damage.

Top Five States for Risk of Snow Load (Risk of Roof Collapse)

1. Alaska
2. Maine
3. Vermont
4. New Hampshire
5. Minnesota

These states have the highest percentage of homes and structures rated as snow load risk according to the HazardHub Snow Load Risk Score. More than 36% of homes in Maine, 35% of homes in Vermont, and 28% of homes in New Hampshire are rated at risk of snow loading on their roofs, as are 22% of homes in Minnesota. , according to HazardHub.

Ice Dams

Heat escaping through a poorly insulated roof can melt snow, which refreezes the edge of the roof, forming ice dams that block proper drainage. This leads to leaks and roof damage, lifting shingles, and water damage inside the home. According to HazardHub data, approximately 28.4% of US census blocks experience more than 30 days of freezing temperatures per year, increasing the likelihood of ice dam formation. It affects 31.4 million housing units. Ice dam removal can cost between $400 and $4,000, depending on the size of the ice dam and type of roof. To reduce, insulate attics, install heat cables on the sides of the roof, and clean the snow regularly.

Other major wintertime hazards to homes and businesses include power outages from fallen trees and damaged lines, strong wind causing structural damage, FLOODING from rapid snowmelt overwhelming drainage systems, and house fire due to unsafe heating methods. Over the past two decades, weather-related events have caused 80% of major power outages, with winter storms responsible for 23% of annual power outages. Wind gusts in excess of 50 mph (80 km/h) can damage roofs and down trees, leading to secondary water damage. Rapid snowmelt can result in costly flooding, often not covered by standard insurance. In addition, the increased use of space heaters, fireplaces, and wood stoves during the winter increases the fire risk in the house. According to the US Fire Administration (USFA), approximately 100,000 winter residential building fires occur in December, January, and February, resulting in approximately $1.9 billion in damage or property loss each year.

Use of Data for Better Protection

The cold, hard truth is that severe winter weather will cause $3.4 billion in insured losses by 2023. Insurers and homeowners need to make better use of the data available to them to assess the their vulnerabilities and take action to mitigate these risks, said Tammy Nichols Schwartz, CPCU and Senior Director of Data and Analytics at Guidewire. Schwartz has more than 25 years of experience in the property and casualty insurance industry and is a recognized expert in climate and natural catastrophe risk.

Detailed winter hazard data and HazardHub maps are available via Guidewire Policy Center and Guidewire Insurance Today solutions, as well as by HazardHub API. Insurers can use this data to improve risk assessment and underwriting accuracy, while property owners can better prepare for the winter season.

Consumers interested in assessing their home’s winter risk can visit freehomerisk.com.

About Guidewire Software (ETR:)

Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. More than 570 insurers in 42 countries, from start-ups to the world’s largest and most complex, rely on Guidewire products. With core systems leveraging data and analytics, digital, and artificial intelligence, Guidewire defines cloud platform excellence for P&C insurers.

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Melissa Cobb
Director, Public Relations
Guidewire Software, Inc.
+1.650.464.1177
[email protected]

Source: Guidewire Software