Roof Damage Claims Surge Nationwide Amid Extreme Weather and Rising Costs

Roof damage claims are spiking across the U.S., driven by increasingly severe weather events such as hailstorms, hurricanes, and extreme winter conditions. According to the Insurance Information Institute, claims from convective storms, including hail, reached $60 billion in 2023—double the previous year’s total. State Farm alone reported a $1 billion increase in hail-related claims from 2021 to 2022. The impact has been particularly severe in states like Texas, where frequent hailstorms contributed to over $500 million in roof-related claims in 2022. The Midwest, including Minnesota, Arkansas, and Nebraska, also saw a sharp rise in claims, with nearly $800 million in damages reported that year.

Inflation and supply chain disruptions have made roof repairs more expensive, with the average roof claim increasing by about $2,000. Insurers are responding by tightening policy terms—some now pay only depreciated costs for roofs over 10 or 15 years old, rather than full replacement costs. In addition, higher deductibles and discounts for hail-resistant roofing materials are becoming more common, as carriers shift more of the financial burden onto homeowners.

Fraudulent claims are further complicating the issue. Contractors often encourage homeowners to file exaggerated or false roof claims, adding to the burden on insurers. These fraudulent claims have driven up litigation costs, contributing to rising premiums for policyholders. In response, insurance companies are using technology like drones and artificial intelligence to assess damage and detect fraudulent activity. In states like Florida, where roof-related fraud is rampant, new legislation aims to curb fraudulent claims and promote the use of fortified roofing systems.

Several states are passing laws or adopting building codes that require stronger, more resilient roofs to withstand severe weather. For example, Florida has implemented some of the strictest building codes in the nation, requiring wind-resistant roofs in hurricane-prone areas. Similarly, Alabama has led the way with the Fortified Roof Standard, which mandates more durable roofing materials and methods to mitigate storm damage. In states like South Carolina and Texas, homeowners can receive discounts or grants for installing impact-resistant roofs, helping to reduce the risk of future claims.

Ultimately, the combination of extreme weather, rising costs, and fraud is creating a crisis for the home insurance industry, with insurers struggling to manage the increasing volume of roof damage claims. These challenges are expected to drive up premiums, putting further financial strain on homeowners across the country.