CoreLogic Report: 20M Single-Family US Homes at High Risk, $17B Lost Annually from Severe Convective Storms

CoreLogic, a leading global property information, analytics and data-enabled solutions provider, released its 2023 Severe Convective Storm Risk Report, which analyzes the risk of severe convective storms in the United States, including straight-line winds, tornadoes, hail and severe thunderstorms.

As evidenced by the March 31 severe storms responsible for more than 500 reports of tornadoes and hail from Texas to Ohio, data shows severe convective storm season peaks from March through June. These events are among the most frequent and damaging natural hazards in the country, causing the biggest weather-related property damage nationwide. As a result, it is also the most important time for insurance providers to assess their risk and implement measures to safeguard policyholders against future perils.

CoreLogic’s risk models estimate severe convective storms account for an average annual loss of more than $17 billion among the insured, with hail damage accounting for more than $11 billion of those losses. In 2022, 11 severe convective storm events caused losses that equaled more than $1 billion.

‘The atmospheric changes that bring on severe storms produce events that are geographically large with irregular shapes,’ said Tom Larsen, senior director of Insurance Solutions at CoreLogic. ‘Accurate risk assessment to inform preparation is critical for insurance companies and communities alike as severe weather events increase in severity and frequency with climate change.’

Metro Area and State Implications
Using its real-time Weather Verification technology and monitoring, CoreLogic examined the top 5 states that sustained the greatest amount of damage within the U.S. in 2022:

Extreme winds in excess of 80 mph associated with severe convective storm activity affected more than half a million homes in 2022 with Texas, South Carolina, California, South Dakota and Indiana among the top five.
In 2022, more than a million homes in the U.S. were damaged by hailstorms, with Texas, Minnesota, Arkansas, Nebraska and Iowa being the hardest-hit states.
Almost 8,000 homes across the U.S. were affected by tornado damage in 2022, with approximately 233 homes immediately impacted by the wind spiral of the tornado, with the remaining homes damaged from peripheral effects, primarily flying debris. Texas, Ohio, Florida, Iowa and Mississippi were the five states that sustained the most damage.
Note – the total number and map above includes extreme winds associated with hurricane activity. In Florida alone, 728,485 homes were impacted by winds greater than 80 mph, mostly attributed to Hurricane Ian.

To establish storm resilient communities and for insurers to improve response time and quickly repair damage from these events, CoreLogic has developed a series of artificial intelligence (A.I.) and machine learning (ML) based digital tools and forensic information. These tools monitor storm activity and implement the best possible catastrophe response procedures for hazard-prone areas. Property insurers can evaluate areas with higher severe convective storm risk by using CoreLogic’s Weather Verification Services.