Location Hail Damage Score, a new product from Verisk Insurance Solutions - Underwriting, a unit of Verisk Analytics, is designed to improve an insurer's ability to underwrite properties with existing hail damage.

Developed in collaboration with Verisk Analytics unit Atmospheric and Environmental Research (AER) and powered by its AER Benchmark database, Location Hail Damage Score is designed to show the probability that a damage-producing hail event affected any property in the 48 contiguous states. Updated monthly, results also include date of last occurrence and the number of events affecting the property based on historical weather data, Verisk said.

"In the United States, the average cost to replace a 4,500- to 5,000-square-foot roof with 25-year three-tab composition shingles is now more than $12,500," said Neil Spector, president of Verisk Underwriting. "By identifying just 100 properties with preexisting damage, we estimate Location Hail Damage Score can help individual carriers avoid as much as $1 million in claims payments for damage occurring before the policy term."

Insurers can implement underwriting rules to trigger specific actions based on Location Hail Damage Score, Verisk said. These include requesting a loss history report, ordering a roof inspection, or potentially eliminating inspections that may be unnecessary. Additionally, an underwriter can use Location Hail Damage Score to reevaluate existing policies in term or at renewal, the company said.

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