Catastrophic Claims Account for 64% of U.S. Home Insurance Losses in 2024: RELX’s LexisNexis Report Reveals Historic Risk Spike

2024 Sets New Records for Peril Severity and Loss Cost Driven by Climate Disasters

The newly released 10th annual LexisNexis U.S. Home Trends Report signals a dramatic escalation in risk for U.S. home insurers, with catastrophic claims soaring to 64% of all losses—the highest proportion in seven years. The surge comes amid 27 climate disasters exceeding $1 billion each, as per the 2025 report, which examines peril-specific insurance claims and cost patterns across the nation. Severity of all perils climbed 9% from 2023 to 2024, eclipsing last year’s record, while total loss cost has jumped nearly 50% compared to five years ago.

Climate Events and Inflation Combine to Challenge the Insurance Industry

As inflation pushes up repair costs and climate events intensify, U.S. insurers find themselves navigating unprecedented volatility. Wind and hail claims in particular drove substantial losses. Hurricanes Helene and Milton were among the most expensive weather events, helping propel wind severity up 23.5% and loss cost by 30.7%. Hail loss costs in 2024 were 19% above the seven-year average, even as the number of hail events fell compared to 2023. Meanwhile, weather-related water claims surged in both loss cost (+25.4%) and severity (+29.6%), exacerbated by record-breaking flash flood emergencies.

Severity Hits a Seven-Year Peak, While Frequency Declines

While insurers saw a welcome decline in claim frequency (down 11.6% year-over-year), the increase in severity pushed loss costs higher. Severity across all perils reached 21% above the long-term average, reflecting inflation’s effect on home repair and replacement. In 2024, catastrophic events—notably hurricanes and large-scale hail storms—drove the lion’s share of total industry loss.

Wind and Hail Perils Dominate Losses; State-by-State Variations Stand Out

Wind claims surged, and hail remained a consistent threat in states like Colorado, Nebraska, and Kansas. Texas experienced its highest peril-related losses from hail, outpacing other weather threats. The seasonality pattern held: April through June marked peak months for hail-related frequency and costs.

Fire, Water, and Non-Weather Claims Offer Mixed Signals

While fire and lightning claims fell in both cost (-3%) and frequency (-13.5%), severity spiked 12.2%—with significant wildfire activity noted in New York, Connecticut, and New Mexico. Water perils showed a divergent pattern: weather-driven water claims rose sharply, but non-weather water and theft-related claims both decreased in loss cost and frequency, even as severity ticked up slightly for water.

Key States: Where Catastrophe Impact Is Highest

Colorado ranked first for catastrophic claim loss cost in 2024, with Nebraska topping all-peril losses driven by hail. The report identifies Colorado, Minnesota, Nebraska, Louisiana, and South Dakota as having the highest combined catastrophe and non-catastrophe loss costs. Conversely, Nevada, New Hampshire, West Virginia, Vermont, and Maine faced the lowest loss burdens.

Advanced Analytics Now Essential as Carriers Seek Resilience

George Hosfield, Vice President at LexisNexis Risk Solutions, emphasized the need for insurers to invest in more sophisticated data tools as volatility increases: “The sharp rise in severity across multiple perils highlights the need for carriers to think beyond short-term rate actions... carriers that leverage more advanced property data insights—from roof condition to water damage risk—can make more informed underwriting decisions and stand a better chance of weathering the storm even as climate volatility and inflation continue to pressure the market.”

Takeaway: Rising Peril Severity Demands New Strategies for Insurers

With catastrophic claims hitting a seven-year high and peril severity continuing its upward trajectory, insurers face growing pressure to manage both costs and risk selection. As climate change accelerates loss patterns and inflation increases the stakes, advanced analytics and strategic underwriting may prove essential for navigating the stormy outlook in U.S. home insurance.

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