Nasty Weather Causing More Tree-Related Insurance Claims?

Kim Frazier Shaughnessy, an insurance agent with on North Druid Hills Road, set out for Emory University after one of the area's recent summer storms. The drive to the campus proved routine.  

But on her route home, Shaughnessy encountered a massive downed tree on Briarcliff Road. She avoided injury and none of her property was damaged. But not all area residents have been so lucky.  

Shaughnessy––and other insurance agents in the area say a recent uptick in violent summer storms and increasingly dry weather conditions have led to a higher volume of insurance claims involving downed trees.  

“We have seen, I would say, an increase (in tree-related claims),” said Cappi Arneson, an insurance agent for Foster & Associates in Lawrenceville. “A lot of it has to do with the drought in my opinion. Trees are distressed, and their root systems are weakened so they’re more apt to fall.”  

The number of tree-related claims has risen steadily over the past several years and that increase has impacted business, she said.

“When there’s an increase in claims it affects premiums,” she said.  “I think it’s been continuously increasing by the year.”  

Neither Shaughnessy nor Arneson could quote exact figures, but the two agreed that number of tree-related incidents is on the rise. Shaughnessy noted a marked increase in the volume of tree-related claims since 2008.  

“That seems to be when something just started to increase,” she said. “It has gotten progressively worse.”  

Those numbers aren't available at the state level either, said Greg Hawkins, director of consumer services at the Georgia Office of Insurance and Safety Fire Commissioner. Claims aren't tracked or tallied based on whether a tree is involved, he said, but rather what caused the tree to fall.

Nonetheless, the deadly tornadoes that swept across the Southeast in late April, including northwest Georgia, have certainly led to an increase of tree-related claims statewide, Hawkins said.

“I think the numbers are definitely up," he said. "Now, as to how you would actually quantify that, I don’t know that there’s a way.”

But Shaugnessy said the increased volume of claims has forced State Farm to build capacity locally. 

“Our claims adjusters have had to hire more independent adjusters and more State Farm adjusters,” she said. “It’s been crazy.”  

For some, the bump in tree-related claims has meant new business opportunities.  

Lorisa Wilson-Kargbo worked for State Farm in the area and noticed more customers were losing their coverage after filing repeated claims. She decided to go into business for herself to court this emerging market, and give those customers an outlet to receive coverage.  

“A lot of the larger companies are canceling their insured, and they’re coming over to my end where I’m able to place them,” said Wilson-Kargbo, who opened 1st Choice Agency in Tucker. “Being independent, there’s a huge market where you’re able to attract a wide range of customers... or customers who may have some issues.”  

She cautioned customers to consider the specifics of their coverage before filing a claim, and to pay for damages themselves whenever possible.  

“Before you file a claim, always ask if this claim will count against a non-renewal,” she said. “Try and pay out of pocket if you can.”