Tennessee tornadoes during March and April have brought nearly 30,000 insurance claims from policy holders seeking to recover from damages to homes, cars, businesses and other properties.
Tennessee Insurance Commissioner Hodgen Mainda said Thursday that the Easter night storms that ripped through Chattanooga and claimed 11 lives across the region have brought hundreds of million of dollars of property damage claims.
As of May 1, 13,349 insurance claims have been filed from policy holders in Southeast Tennessee due to the April 12-13 storms, which included seven tornadoes and winds up to 145 miles per hour. Hundreds of persons, especially in the East Brainerd and Ooltewah areas, were displaced from the homes when their houses became uninhabitable due to storm damages and thousands of others have suffered damages to vehicles, businesses and other properties.
The Chattanooga tornadoes came less than six weeks after a series of six tornadoes hit Middle Tennessee, claiming 24 lives and bringing a torrid of 16,263 insurance claims for property damages.
Mainda said claims adjusters are still calculating the projected costs to repair damaged properties and what insurers will pay out in coverage.
In its application for federal disaster assistance, the Tennessee Emergency Management Agency estimates the April 12-13 storms in Hamilton and Bradley counties caused $200 million to $300 million in damages.
Virtual Disaster Loan Outreach Center/Business Recovery Center
› Open: Monday – Friday› Hours: 8 a.m. – 5 p.m. (EST)› Closed: Saturdays and Sundays› Email: FOCE-Help@sba.gov› Phone: (571) 422-1925; or (571) 422-6016; or (404) 909-1535
The Federal Emergency Management Agency, which granted the emergency disaster declaration late last month, is offering federal aid for the public costs of the recovery, including more than $28 million that EPB estimates it spent restoring power and broadband services to over 60,000 customers who lost electric service during the storms. Additionally, the U.S. Small Business Administration is providing low-interest loans for recovery costs not covered by private insurance companies or for those without any insurance.
In a conference call with reporters Thursday, Mainda said insurers and adjusters have responded well to the disaster, especially with the social distancing requirements brought on by the COVID-19 pandemic, and his office has had few complaints so far. But Mainda urged those with problems or complaints to file their concerns with the Tennessee Department of Commerce and Insurance if they are having problems with the insurers.
"We're asking Tennesseans to please document as much as possible and to take pictures to have enough proof when you file your claim, especially during this unprecedented time of a disaster in the midst of the COVID-19 pandemic," Mainda said. "I commend the insurers for adapting and responding very well."
For damages not covered by insurance, the disaster declaration for Southeast Tennessee allows storm victims to access the SBA's low-interest disaster loan program, which provides loans as low as 1.563% for homeowners, 3.75% for businesses, and 2.75% for non-profit organizations. Loans of $25,000 or less require no collateral for the SBA loans.
"Our name is confusing - U.S. Small Business Administration - but in fact, the majority of our assistance goes to homeowners and renters to repair damages not covered by insurance," SBA spokeswoman Julie Garrett said.
The disaster declaration covers Bradley and Hamilton counties in Tennessee which are eligible for both physical and economic injury disaster loans from the SBA. Small businesses and most private nonprofit organizations are also eligible for SBA loans in Bledsoe, Marion, McMinn, Meigs, Polk, Rhea and Sequatchie in Tennessee; and Catoosa, Dade, Murray, Walker and Whitfield in Georgia.
In accordance with health precautions for the coronavirus, the SBA will not establish a field presence to assist survivors. However, SBA is handling loan requests online at https://disasterloanassistance.sba.gov/ and there are virtual customer support representatives available to assist applicants with completing the online application.
"Getting businesses and communities up and running after a disaster is our highest priority," SBA Administrator Jovita Carranza said.
Since the disaster declaration on April 27, SBA has already approved six loans totaling $164,700 in Chattanooga, Garrett said.
Contact Dave Flessner at dflessner@timesfreepress.com or at 757-6340