This post is part of a series sponsored by CoreLogic.
During the summer of 2023, the Minneapolis area experienced several hailstorms, each causing more than $1 billion in damage.
It wasn’t just the Minneapolis area.
Last year, a record number of hailstorms occurred across the United States, causing significant damage, many of which occurred in populated areas. Due to the frequency of these storms, a common challenge for insurers is figuring out which events caused damage and where.
Hailstorms can occur multiple times a year in any region. Because hail damage is covered under standard homeowners insurance, insurance companies must determine the exact date the damage occurred and only accept claims and restoration procedures for property damaged during the policy period.
According to Insurance Fraud Prevention AllianceFraud occurs in approximately 10% of property damage cases. Among these fraudulent cases, fraudulent hail-related claims are common, with property owners and contractors too often claiming that hail damage occurred to their property before they have actually received insurance money.
Using claims validation technology based on forensic data, insurers can ensure that claims coverage policies are executed accurately during hail events, benefiting their business and improving customer service.
Risk Analysis vs. Prediction vs. Forensic Data
Weather forecasting involves identifying and analyzing weather patterns to predict future weather events, which helps insurers prepare for storms that may occur in the coming days. With accurate risk analysis and predictive data, insurers can make underwriting decisions, strategize recovery efforts, and prepare policyholders for upcoming weather events.
vice versa, Forensic Weather data is historical information derived from the study and analysis of past weather events. Solution providers can use hail forensic data to create a precise and accurate footprint of past hail events. These tools help insurance companies determine exactly which policyholders were insured at the time hail damage occurred on their homes. Insurance companies need tools such as forensic maps to review claims and prevent fraudulent claims.
Latest version of CoreLogic® forensic hail damage verification technology: HVT 3.0
For many years, CoreLogic® has been in the business of using advanced technology and forensic data to create the most accurate address-specific information on the market, producing hail verification maps and reports for insurance companies.
Our newly upgraded proprietary hail damage forensic model, Hail Damage Verification Technology (HVT) 3.0, provides a solution that allows insurers to focus on accurately verifying the time and location of hail damage and understanding the impact on their policyholders, so that they can focus on providing the best customer service to their duly insured policyholders when their property is damaged by hail damage.
The HVT 3.0 model uses polarimetric radar data, ground data, and the expertise of our dedicated in-house meteorologists to generate reports for insurers. It more effectively distinguishes between rain and hail, as well as small and large hail, and produces accurate footprints for hail 0.75 inches in diameter and larger. As a result, our maps are highly effective indicators of loss severity and complexity.
CoreLogic’s HVT 3.0 reports incorporate the highest spatial and temporal resolution data, so these reports ensure accuracy of when and where hail actually occurred, enabling timely response to legitimate policyholders.
Verify claims with forensic data-driven technology
For insurance companies, predictions are undoubtedly important in certain processes, but it is forensic data that plays a central role in claims validation. As an insurer, to accurately respond to and pay claims, and protect only those who are entitled to support, you need to use forensic analysis tools, such as those provided in the latest version of CoreLogic’s hail validation technology.
There are many claims validation solution providers on the market that primarily model their solutions on public algorithms used by meteorologists to assess the likelihood of hail from a storm. These solutions do not provide the level of detail and accuracy that insurance companies and property owners require. The difference is in the details, and only forensically backed technology can provide both the details and the context to insurers during this critical process of hail validation.
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