LexisNexis Risk Solutions has released its 10th annual U.S. Home Trends Report, which examines loss cost, claims frequency and severity. The report also looks into seasonality, catastrophic claims, and geographic patterns, including state-level trends.
The data shows that All Peril severity increased 9% between 2023 and 2024, marking the highest level in seven years. In 2024, the U.S. experienced 27 climate disasters causing $1 billion or more in damages, which is 21% above the long-term average.
Catastrophe claims accounted for 42% of all claims in 2024, while catastrophe losses rose to 64%, another seven-year high. Wind claims saw notable increases, with severity up 23.5% and loss costs climbing 30.7%. Hail loss costs stood 19% above the seven-year average, and nearly two-thirds of hail claims were classified as catastrophic.
The LexisNexis report also highlights that severity across all perils reached a seven-year high in 2024, increasing 21% above the long-term average, likely due to sustained inflationary pressures.
While severity increased, frequency declined by 11.6% from 2023 to 2024. States such as Colorado and Nebraska ranked highest in loss cost from catastrophic claims, largely due to hail and severe weather events.
Nearly half of U.S. homeowners insurance customers saw their premiums rise in the past year, the highest rate of insurer-initiated increases in over a decade. The J.D. Power 2025 U.S. Home Insurance Study found that high-value customers, in particular, are more likely to consider switching carriers due to these increases.
The projected national average increase for 2025 is 8%, and the study notes that clear communication from insurers about rate hikes and available options can improve customer satisfaction, but repeated price hikes are testing customer loyalty.
Looking further ahead, home insurance premiums are projected to rise by an average of 29.4% over the next 30 years due to climate risks, with some metro areas in Florida expected to see increases of over 200%. Analysts note that insurance costs have already risen 66% on average since 2017, outpacing home price appreciation.
The rising costs and reduced availability of insurance may also influence where people choose to live in the future, as climate-driven risk exposure becomes a larger factor in property economics.
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