When disaster strikes

For the first time since I've been in business, I had to file an insurance claim.

The electricity went out in Carrington during a severe thunderstorm the night of Monday, June 17. When Independent staff came to work Tuesday morning, they discovered that some of our office equipment was not working properly.

The main office printer wouldn't turn on, so they made the call to Central Business Systems, the company that maintains our printer. It turns out that the surge protector box had done its job, failing while protecting the printer from demise. Money well spent.

Two other machines connected to an ordinary surge protecting power strip failed, however, including a relatively new printer, albeit smaller and cheaper to replace than the other one.

Throughout the next few days, the damages began to mount. We lost an air conditioning unit, which we discovered when we tried to fire it up on one of the first warm days of summer.

We also said goodbye to a PC, two electronic adding machines and a postal scale. Our automatic folding machine in the production room has folded its last auction flier as well.

Yes, some were due for replacement. Others, meanwhile, were among the newest machines in the building.

Readers and customers should also note that our fax line went down. We don't send or receive faxes much anymore, so it took a few days to discover the issue. However, there may have been some intermittent phone issues, as the fax line also functions as a second phone line.

We set up a graveyard in the newsroom for all the dead business equipment. We put them next to another PC and a few random peripherals that failed in the past six months. I guess it's time to head to the nearest electronics recycling center and unload a ton.

I wonder what they pay for fried electronics. Heck, I'm sure I'll probably have to pay for someone to take them away.

All told, this is a small loss compared to the damage caused from a number of catastrophic weather events recently.

My husband's relatives in northwest Iowa are dealing with the worst flooding they've had in many years. Entire towns were underwater and parts of Interstate 29 looked like a lake just a few days ago. The damage has been widespread. The Rapidian Dam, a southern Minnesota landscape feature for more than a century, nearly failed on Monday. The New York Times reported, "At one point, a support structure alongside the dam partly failed and gushing waters carved out a nearby cliff." Meanwhile, video footage captured a nearby building collapsing on itself and falling into the river.

This is just one more weather-related catastrophe to add to the growing list in recent years. In the past, we've heard about disaster relief and how much it costs the U.S. government to bail out people whose homes and businesses are destroyed in these weather events.

Now, officials are sounding an alarm on the insurance industry. The New York Times conducted a full-scale investigation of the home insurance industry, which is reportedly in danger of insolvency. They released a series of articles about the condition of the insurance market, including a state-by-state analysis.

In some states, private insurers will no longer issue policies in high-risk areas, and states have created public markets of last resort to get property owners the insurance coverage they need.

According to the North Dakota Monitor, N.D. Insurance Commissioner Jon Godfread testified before a legislative committee recently that insurance companies are drowning under the water of weather claims. He also sent an op-ed to newspapers across the state last month.

Godfread wrote, "According to JD Power, insurers lost an average of 12 cents per dollar in premiums collected in 2022. That means, for every $1.00 in premiums paid by consumers, companies paid out $1.12 in claims to consumers. The pool of funds is being drained quicker than it can be filled."

What does that mean for us, those who have reliably and consistently paid our insurance premiums and reviewed our coverage to make sure that it adequately compensates us in the event of a loss? It potentially means higher rates across the board, and a future with potentially fewer choices for consumers.

In his testimony to legislators, Godfread cited a recent report that explored the effect of recent investment, insurance and policymaking trends on North Dakota – especially those related to "environmental, social and governance" criteria, or ESG.

The study, which was requested by the Legislature in 2023, noted that due to factors like increased severe weather events and global economic trends, insurance across the country is getting more expensive and more difficult to obtain.

As a result of Godfread's testimony and the ESG report findings, North Dakota lawmakers agreed to set aside $1.5 million for the state's Insurance Department to research policy solutions to help North Dakotans weather this unusually volatile property insurance market.

As Godfread acknowledges, this is not an issue that will be solved overnight. Let's hope that the powers that be can come up with some creative solutions to keep us protected in the future. I'm grateful for my local insurance agents who take my phone call when disaster strikes.