New Jersey tops list of U.S. states vulnerable to insured tornado damages

When you think of U.S. states most vulnerable to huge insured tornado damage losses, think New Jersey.In its 2007 Special Report: U.S. Tornadoes, A.M. Best notes that New Jersey tops Connecticut, Massachusetts, Ohio and Rhode Island for the title of Tornado Alley when it comes to potential insured losses arising from tornadoes.Most people associate tornado activity with the Tornado Alley of the Great Plains states, the A.M. Best report says. While this is true in terms of the sheer number of tornadoes and losses, surprisingly, catastrophe modeling shows that New Jersey tops the list of the states with the highest average expected, or modeled insurance losses, per 1,000 square miles from tornado and weather-related eventsTornadoes have occurred in all 50 states, however, the high average loss rates in the above-mentioned five states are affected heavily by insured property values in addition to the frequency of the storms.The A.M. Best study goes on to note that 2006 was the worst year on record for tornadoes and related weather events, which caused an estimated US$8 billion in insured damages last year. 2007 is shaping up to be no better, the report observes. The first quarter of 2007 has just concluded with a preliminary estimate of 334 tornadoes, up 65% from the first quarter of 2006, says the special report.