Winter Storm Fern Expected to Cause Over $100 Billion in Economic Losses

A weekend winter storm that affected more than 200 million people across over two dozen states is expected to generate between $105 billion and $115 billion in total damage and economic losses, according to AccuWeather. The estimate includes both insured and uninsured impacts, reflecting the full scope of disruption tied to snow, ice, and prolonged Arctic cold following the storm.

AccuWeather’s preliminary analysis accounts for property damage to homes and businesses, extended power outages, supply chain and commerce disruptions, travel delays, tourism losses, and damage to critical infrastructure. For claims adjusters, this signals a broad mix of first-party property claims, contingent business interruption exposures, and secondary losses that may continue to develop as freezing temperatures persist.

Chief Meteorologist Jonathan Porter emphasized that the storm’s reach across transportation, energy, and daily life differentiates it from more localized winter events. The extreme cold behind the system is expected to slow recovery and elevate the risk of secondary losses such as frozen pipes, structural failures, and extended business closures. These delayed impacts often drive claim severity well after the initial event, complicating inspections and coverage determinations.

From an insurance industry perspective, Moody’s Ratings expects insured losses to reach into the billions. Moody’s noted that the benchmark for winter storm insured losses remains the 2021 Texas freeze at approximately $18 billion. In response to repeated nonpeak peril losses, many homeowners and commercial insurers have already raised rates and adjusted policy terms. For adjusters, this means heightened scrutiny of exclusions, sublimits, and causation issues, particularly around freeze-related damage and power outage-driven losses.

As recovery efforts continue under dangerous cold conditions, claims teams should prepare for an extended reporting tail, increased complexity in loss attribution, and higher dispute potential tied to coverage interpretations and secondary damage timing.