The tornado watch includes most of the state of Indiana.
The report states wind and hail damage cost State Farm and the state $3.9 billion last year alone.
A severe thunderstorm watch remains in effect until 9 p.m. for central Indiana.
The drills are planned to give emergency officials, residents, schools and businesses a chance to test and review emergency plans.
Snow showers will be possible across portions of the region late Wednesday afternoon into Wednesday evening.
A winter weather advisory is in effect for northern and central Indiana until 10:00 A.M. Friday.
Local police departments throughout the state will give away 8,500 radios.
The forecast calls for cooler than normal daytime highs today and tomorrow.
A thunderstorm watch remains in effect until midnight.
Damaging wind gusts will be the primary threat, with hail, brief heavy rainfall and dangerous lightning also possible.