Home insurance costs soar as climate risks rise
Home insurance claim costs rose 9 percent between 2023 and 2024 to reach the highest level in seven years, according to LexisNexis Risk Solutions. The United States recorded 27 climate disasters that each caused $1 billion or more in damage last year, which exceeded the long-term average by 21 percent.
Wind damage claims increased 23.5 percent in severity, while total wind loss costs climbed 30.7 percent. Hail losses remained 19 percent above the seven-year average as nearly two-thirds of hail claims qualified as catastrophic events. Colorado and Nebraska reported the highest catastrophic claim costs from severe weather.
Nearly half of American homeowners paid higher premiums last year at the fastest rate in more than 10 years. National premiums may increase by 8 percent in 2025 and could rise by 29.4 percent over 30 years due to climate risks. Insurance costs have grown 66 percent since 2017 and surpassed home price gains.
