Extreme Weather, COVID, Home Claims

In 2020, catastrophic weather, including severe wildfires, seven major hurricanes and a destructive derecho drove the proportion of catastrophe losses up 40% from 2019.

These weather events were the largest drivers of losses for the home insurance industry in 39% of claims ‑ the highest percentage in the last six years, according to the new 2021 LexisNexis Home Trends Report.

Overall loss cost for all perils increased by 6% year-over-year, with some states more severely affected than others. Louisiana, for example, had the highest loss cost in the nation in 2020 due to a devastating hurricane season and overtook Colorado as the state most affected on average by wind peril in the last six years.

In the western part of the U.S., Colorado continues to rank highest in hail claims over states like Texas and Wyoming, while California accounted for the most loss cost, severity and frequency of fire and lightning claims, with 37% of all catastrophe claims nationwide and 75% of all catastrophe losses in 2020.

In addition to these extreme weather events, the report also tracked and analyzed the impact of COVID-19 on the U.S. home insurance market in 2020. Fewer houses were left unattended, with more people working from home, leading to a 53% decrease in liability and a 25% drop in theft loss costs.