HazardHub Winter Weather Data Helps Insurers and Homeowners Prepare for Seasonal Risks Investing.com

HazardHub identifies the biggest winter hazards and areas of vulnerability

SAN MATEO, Calif.–( BUSINESS WIRE )–Guidewire (NYSE: ) HazardHub has released data on winter weather risks 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. The year before, in 2022, nearly $6 billion in losses from winter storms was recorded, the second largest loss on record in the past 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 level of a specific property address. HazardHub offers more than 1,000 data points and risk scores for climate risks and extreme weather.

Freezing temperatures across the US

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

The primary factors that contribute to the coldest regions are latitude, elevation, and geography. States on the northern border, in the Rocky Mountains or at higher altitudes, as well as Alaska, record the lowest temperatures.

Mostly countries with low temperatures

According to Guidewire HazardHub, 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)

The main weather hazards of winter

According to an analysis of Guidewire HazardHub data, the most dangerous Winter weather risks, based on the possibility of loss of claims, scope of damage and frequency are:

Frozen pipes

Cold temperatures cause water in pipes to expand, leading to cracks and bursts leading to extensive water damage to floors, drywall and home contents. This danger leads to one of the most common winter insurance claims. Mitigation steps include insulating pipes, keeping heat indoors, allowing faucets to drip during cold snaps, and draining plumbing in vacant properties.

Top five states for risk of freezing pipes

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

These states have the highest percentage of homes and structures rated ˜F’ on the HazardHub Frozen Pipe Risk score. According to HazardHub data, 21% of US homes face the risk of frozen pipes during the winter season. The The average cost of a frozen pipe insurance claim is approximately $18,000. covering damage to floors, drywall, home contents and plumbing systems. According to the Insurance Information Institute, water damage (in all seasons) and freezing cases account for nearly 24% of all homeowner’s insurance claims.

Snow load (roof collapse)

Accumulated snow and ice place significant stress on roofs, risking structural damage or collapse, especially for older buildings or those with flat roofs. States like Alaska, Maine and Vermont experience the highest risk due to heavy snowfall. Regular snow removal from roofs, gutter maintenance and trimming of overhanging branches can prevent this costly damage.

The five biggest risks of snow loads (danger 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 at risk of snow loading 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 were rated at risk of roof snow loading, as were 22% of homes in Minnesota, according to HazardHub.

Ice dams

Heat escaping through a poorly insulated roof can melt snow, which refreezes at the edge of the roof, creating ice dams that block proper drainage. This leads to roof leaks and damage, lifting shingles and causing water damage inside the home. According to HazardHub data, approximately 28.4% of census blocks in the US experience more than 30 days of freezing temperatures each year, increasing the likelihood of ice dams forming. This 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 the type of roof. To mitigate, insulate attics, run heating cables along the edges of the roof, and regularly clear snow accumulations.

Other major winter weather risks for homes and businesses include power outage from fallen trees and damaged lines, strong winds which cause structural damage, flood from rapid snowmelt of excessive drainage systems and house fires due to unsafe heating procedures. Over the past two decades, weather has caused 80% of major blackouts, and winter storms have caused 23% of annual blackouts. Wind gusts greater than 50 mph (80 km/h) can damage roofs and down trees, leading to secondary water damage. Rapid snowmelt can result in costly flooding, which is often not covered by standard insurance. In addition, the increased use of space heaters, fireplaces and wood stoves during the winter increases danger of house fires. According to the United States Fire Administration (USFA), approximately 100,000 winter residential fires occur in December, January and February, resulting in approximately $1.9 billion in property damage or loss each year.

Using data for better protection

The cold, hard fact is that extreme winter weather will cause $3.4 billion in insured losses in 2023. Insurers and homeowners need to make better use of the data available to them to assess their vulnerabilities and take steps to mitigate those risks, Tammy said. 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 recognized as an expert in climate and natural catastrophe risks.

HazardHub’s detailed winter risk data and maps are available via Guidewire PolicyCenter and Guide wire InsuranceNow solutions, as well as through 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 largest and most complex in the world, rely on Guidewire products. With core systems leveraging data and analytics, digital and artificial intelligence, Guidewire defines cloud platform excellence for P&C insurers.

We are proud of our unparalleled implementation track record, with more than 1,700 successful projects supported by the industry’s largest R&D team and SI partner ecosystem. Our marketplace represents the largest community of solution partners in P&C, where users can access hundreds of applications to accelerate integration, localization and innovation.

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See the original version on businesswire.com: https://www.businesswire.com/news/home/20250121971687/en/

Melissa Cobb
Director, Public Relations
Guidewire Software, Inc.
+1.650.464.1177
mcobb@guidewire.com

Source: Guidewire Software