LexisNexis U.S. Home Insurance Trends Report Highlights Rising Peril Severity as Catastrophic Claims Hit Seven-Year High

Rhea-AI Summary

LexisNexis Risk Solutions (RELX) released its 10th annual U.S. Home Trends Report on Oct 23, 2025, showing rising claim severity and catastrophe impact across U.S. home insurance.

Key metrics: All Peril severity rose 9% from 2023–2024 and was 21% above the long-term average; All Peril loss cost was 49.7% higher in 2024 vs 2019. Catastrophe claims were 42% of claims but 64% of losses in 2024. Notable moves: wind severity +23.5% and loss cost +30.7%; weather-related water loss cost +25.4%; hail loss cost +19% vs seven-year average.

Positive

• All Peril loss cost +49.7% versus 2019
• Catastrophe losses now represent 64% of total losses
• Wind loss cost +30.7% year-over-year

Negative

• All Peril severity rose 9% from 2023 to 2024
• Hail loss cost 19% above seven-year average
• Weather-related water loss cost +25.4% from 2023 to 2024

Insights

Property & Casualty Insurance Analyst

Rising catastrophe severity and loss costs in 2024 materially increase underwriting pressure for U.S. home insurers.

Loss trends show acute cost escalation: All Peril severity rose 9% year‑over‑year and was 21% above the long‑term average, while All Peril loss cost was 49.7% higher in 2024 than in 2019. Catastrophe claims comprised 42% of claims and 64% of losses in 2024, with wind loss cost up 30.7% and wind severity up 23.5%.

The business mechanism is straightforward: higher claim severity and catastrophe share raise insurers’ payout per claim and concentrate losses in peak events, pressuring combined ratios unless premiums or underwriting discipline offset the rise. Key dependencies and risks include claims inflation, event concentration (noted spikes in hurricanes, hail, and flooding), and regional exposure (e.g., Colorado, Nebraska, Texas highlighted). Watch near-term reserve development and rate filings, plus frequency trends—frequency fell 11.6% overall but severity rose; that mix matters for short‑term profitability. Monitor these metrics over the next 12–24 months, especially reserve releases or increases and regulatory rate approvals.

10/23/2025 - 01:00 PM

2025 report underscores the combined impact of hurricanes, hail and flooding as severity and loss costs continue to climb

ATLANTA, Oct. 23, 2025 /PRNewswire/ -- LexisNexis® Risk Solutions today released its 10^th annual LexisNexis U.S. Home Trends Report, providing an updated analysis of by-peril claims trends in the U.S. home insurance industry to help carriers make more informed, strategic decisions. Examining loss cost and claims frequency and severity, the report also offers insights into seasonality shifts, catastrophic claims and geographic patterns, including trends by U.S. state.

Key Takeaways

• All Peril severity increased 9% between 2023 and 2024, the highest in seven years, with 2024 breaking records set in 2023 as the U.S. experienced 27 climate disasters with $1 billion or more in damages, and 21% above the long-term average. All Peril loss cost was 49.7% higher in 2024 than in 2019.
• Catastrophe claims represented 42% of claims across all perils combined in 2024, while catastrophe losses increased to 64%, another seven-year high signaling the growth of catastrophic events driving overall loss trends.
• Wind claims surged in 2024, with severity up23.5% and loss costs jumping 30.7%, fueled by Hurricanes Helene and Milton – two of the costliest events of the yearⁱ. Losses peaked in September last year, the height of hurricane season.
• Hail loss costs was 19% above the seven-year average in 2024 and nearly two-thirds of claims deemed catastrophic. Loss cost for other weather-related perils declined across Fire and Lightning (down 3%) and Non-Weather-Related Water (down 4.3%) from 2023 to 2024, while Weather Related Water rose 25.4%.

"U.S. home insurers are facing two converging challenges: climate-driven catastrophes intensifying and inflation continuing to drive up repair and replacement costs," said George Hosfield, vice president, home insurance, LexisNexis Risk Solutions. "These pressures are helping to contribute to higher premiums for U.S. consumers as carriers work to manage rising loss costs. The data shows just how critical it is for the insurance industry to leverage more advanced analytics to help anticipate risk and maintain resilience. Last year, catastrophe claims accounted for nearly two-thirds of all losses, which was the highest level we've seen in the seven years included in this year's study."

All Peril Trends

• The U.S. home insurance industry has experienced an upward trend in loss cost across all perils combined over the past seven years.
• Severity reached its highest level in seven years in 2024, increasing 21% above the long-term average, likely driven by sustained inflationary pressures across all perils. While severity is high, frequency declined from 2023 to 2024 by 11.6%.
• Colorado ranked highest in loss cost from catastrophic claims, while Nebraska had the highest loss cost of All Peril claims combined in 2024, driven by Hail losses. U.S. states with the highest combined catastrophe and non-catastrophe loss costs include Colo., Minn., Neb., La. and S.D. The lowest ranking states include Nev., N.H., W. Va., Vt. and Maine.

Hail Perils

• In 2024, the U.S. experienced 5,373 hail events, down from 2023ⁱⁱ, but the loss costs continued their upward trend, sitting 19% above the seven-year average.
• The U.S. experienced 11 severe weather/hail events with the cost of hail damage exceeding $3 billion per annum – up from less than $500 million in the last 24 yearsⁱⁱⁱ.
• States with the highest impact of hail-related perils include Colo., Neb. and Kansas. In 2024, the highest loss cost peril in Texas was hail over other weather events.
• Hail peril seasonality over the past seven years continues, with April, May and June observing the highest frequency and loss cost.

Wind, Water, Fire and Lightning Perils

• Wind peril frequency rose 5.8%, along with loss cost increasing 30.7% from 2023-2024. Severity increased 23.5% year over year.
• Fire and Lightning perils in 2024 saw decreases across loss cost (-3%) and frequency (-13.5). However, severity increased 12.2% in 2024, likely due to major fires in New York, Connecticut and New Mexico^iv. Catastrophic claims made up 10% of claims in 2024.
• In 2024, there were 91 flash flood emergencies, a record-breaking number since 2003^v, causing an increase in loss cost. Weather-Related Water loss cost increased 25.4% from 2023 to 2024, with claims severity up 29.6%, while claims frequency declined 3.2%. Oregon recorded the highest loss cost due to a severe winter storm with strong winds and freezing temperatures that led to burst water pipes^vi. In 2024, 64% of weather-related water claims were catastrophic.

Non-Weather-Related Perils

• Addressing claims related to water damage, such as leaking pipes and appliances, Non-Weather-Related Water perils decreased across loss cost (-4.3%) and frequency (-9.9%) while severity increased (6.2%) in 2024.
• Theft loss cost and frequency decreased by 20% and 20.9%, respectively, in 2024, and severity rose by 1.1%, partially attributed to the rising cost of consumer goods such as high-end appliances and kitchenware^vii.
• Liability loss cost increased 5.5% along with severity (18.8%) in 2024, while frequency decreased by 11.2%.
• Other Perils, including physical damage claims not included elsewhere, extended coverage, damage to property of others, etc., saw a severity increase of 2.4% year over year. Loss cost, along with frequency, both declined 24.6% and 17.3%, respectively, from 2023 to 2024.

"The sharp rise in severity across multiple perils highlights the need for carriers to think beyond short-term rate actions," continued Hosfield. "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."

Download the latest LexisNexis U.S. Home Trends Report.

About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit www.risk.lexisnexis.com, and www.relx.com.

Media Contacts:
Chas Strong
LexisNexis Risk Solutions
Phone: +1.706.714.7083
Charles.Strong@lexisnexisrisk.com 

ⁱ Adam B. Smith, "2024: An active year of U.S. billion-dollar weather and climate disasters," National Oceanic and Atmosphere Administration (NOAA) Climate.gov, https://www.climate.gov/news-features/blogs/beyond-data/2024-active-year-us-billion-dollar-weather-and-climate-disasters
ⁱⁱ "Facts + Statistics: Hail," Insurance Information Institute, 2025, https://www.iii.org/fact-statistic/facts-statistics-hail
ⁱⁱⁱ "Hail Statistics by State," YPA Public Adjusters, https://www.ypapublicadjusters.com/hail-statistics-by-state/
^iv Hristina Byrnes, "Year In Review: The 25 Biggest Wildfires of 2024," Climate Crisis 247, https://climatecrisis247.com/gallery/year-in-review-the-25-biggest-wildfires-of-2024/
^v Mary Gilbert, "An unprecedented number of flood emergencies have ravaged the US. It's a warning of what's to come," CNN, https://www.cnn.com/2024/10/25/weather/record-numbers-of-an-extreme-warning-show-the-reality-of-climate-change 
^vi Lillian Karabaic, Joni Auden Land and Courtney Sherwood, "Cold weather, power failures continue in aftermath of Oregon storm," Oregon Public Broadcasting (OPB), https://www.opb.org/article/2024/01/14/winter-storm-ice-snow-deaths-power-failures-portland-oregon-willamette-valley  
^vii Whizy Kim, "The surprising reason luxury goods are booming," Vox, https://www.vox.com/money/23728283/luxury-designer-boom-nike-lvmh-pandemic-le-creuset

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SOURCE LexisNexis Risk Solutions

FAQ

What did the LexisNexis U.S. Home Trends Report (RELX) report on severity in 2024?

The report found All Peril severity increased 9% year-over-year and was 21% above the long-term average in 2024.

How much higher was All Peril loss cost in 2024 compared with 2019 according to the RELX report?

All Peril loss cost was 49.7% higher in 2024 than in 2019.

What share of claims and losses were catastrophic in 2024 per the LexisNexis report?

Catastrophe claims made up 42% of claims and accounted for 64% of losses in 2024.

Which perils saw the largest year-over-year increases in the 2024 LexisNexis report?

Wind severity rose 23.5% and wind loss cost increased 30.7%; weather-related water loss cost rose 25.4%.

Which U.S. states had the highest combined catastrophe and non-catastrophe loss costs in 2024?

The highest combined loss-cost states were Colorado, Minnesota, Nebraska, Louisiana, and South Dakota.

How did non-weather-related water claims change in 2024 in the LexisNexis report?

Non-weather-related water loss cost decreased 4.3% and frequency fell 9.9%, while severity rose 6.2% in 2024.