Property Insurance Claims Continue Three-Year Decline in Q2 2025, Verisk Reports

Property insurance claims continued their multi-year downward trend in the second quarter of 2025, according to Verisk’s latest Quarterly Property Report. Compared to Q2 2024, total property claims dropped by 9.6%, although there was a 26% increase from Q1 2025. The primary driver behind the year-over-year decline was a 16.8% drop in non-catastrophe (non-CAT) claims, while catastrophe (CAT) claims remained mostly flat with a marginal 0.76% increase.

Wind and hail damage dominated Q2 claim activity, especially in the top five states by claim volume—Texas, Missouri, Illinois, Georgia, and Ohio. Texas again led the nation, reporting 183% more claims than Missouri, with wind/hail losses comprising nearly 80% of total claims. Missouri followed closely behind, with 86% of its Q2 claims related to wind/hail events, most of which were classified as CAT.

A notable finding in the report was that 27% of hail-related claims showed no weather evidence on the reported loss dates, prompting concern over potential misclassification and fraud risk. Meanwhile, some states experienced sharp swings: Indiana, West Virginia, and Kentucky saw CAT claim spikes exceeding 50%, while Colorado, South Dakota, Maine, and Nebraska each posted claim drops of over 50%.

Although claim severity is currently down 9% from Q2 2024, Verisk expects this figure to rise as more complex losses are fully processed. The report also notes a slight 1.06% increase in labor and material costs, with siding and tile labor rates rising and roofing labor costs falling for the first time in over a decade. Builder confidence has also taken a hit, falling to 32 on the Housing Market Index, highlighting increased contractor caution amid ongoing labor shortages and demand uncertainty.