Rising Insurance Costs and Severe Thunderstorms: How Convective Storms Are Reshaping Risk

Property insurance costs are rising as severe convective storms (SCS) continue to drive significant insured losses across the U.S. Unlike hurricanes or wildfires, SCS events—including hailstorms, tornadoes, and straight-line winds—occur frequently, with smaller losses accumulating into billions in claims. The CoreLogic 2025 Severe Convective Storm Risk Report highlights how these storms impact homeowners and insurers, particularly in high-risk states like Texas, Nebraska, and Missouri.

In 2024, more than 567,000 homes sustained hail damage, with Texas experiencing the most severe impacts. SCS patterns are shifting toward high-intensity, short-duration events, creating surges in claims that challenge insurers’ processing capabilities. CoreLogic’s data and weather verification tools help insurers assess damage more accurately and optimize claims management during these outbreak events.

Looking ahead, climate change is expected to further alter SCS patterns, increasing storm intensity and redistributing risk across the U.S. Advanced climate analytics suggest that by 2050, regions in the South and Midwest may face heightened risks. Insurers must adapt to these changes by refining risk models, adjusting pricing strategies, and promoting climate resilience efforts. Leveraging high-quality storm data and risk assessment technologies will be critical in mitigating future losses and maintaining a sustainable insurance landscape.