Hail is amongst insurers’ rising checklist of local weather issues after a record-breaking yr for extreme climate in 2023. The outlier yr, fueled by the shift from La Niña to El Niño, marked a 57% year-over-year enhance in main hail, based on Nationwide Oceanic and Atmospheric Administration (NOAA) knowledge.
Though 2024 had fewer hailstorms, extreme hail elevated by 21% in comparison with 2022.
“The U.S. has incurred greater than $50 billion yearly in extreme convective storm losses over the previous two years,” stated Mark Friedlander, director of company communications on the Insurance coverage Info Institute. “These storms sometimes generate important ranges of hail injury to houses and autos.”
Insurers issue hail losses into residence and auto insurance coverage pricing together with different elements, like the price of constructing supplies, automobile alternative, labor, and authorized protection. As extra extreme hailstorms start to impression insurer danger, folks with automobile and householders insurance policies in affected areas can anticipate to pay extra for his or her insurance coverage.
To find out the place extreme hailstorms are rising the quickest and which states might see rising insurance coverage premiums, Insurify’s knowledge science crew analyzed NOAA and FEMA Nationwide Danger Index (NRI) knowledge to establish 10 states with the very best three-year rise in main hail occasions.
Key Takeaways
Hail danger is rising nationwide. Half of the ten states with the very best three-year enhance in main hailstorms are within the Midwest, two are within the South, two are within the West, and one is within the Northeast.
Missouri noticed probably the most important enhance in main hail occasions within the nation, a 182% rise between 2022 and 2024. Common full-coverage automobile insurance coverage premiums in Missouri elevated by 29% in 2024.
Car hail injury claims are 26% extra pricey than different complete claims on common, based on CCC Clever Options.
A number of the states with probably the most important enhance in main hailstorms, like Colorado, Kansas, Louisiana, and Texas, additionally rank among the many 10 most costly states for residence insurance coverage, based on Insurify and Quadrant knowledge. Many of those states are additionally at a better danger of different extreme climate, reminiscent of wildfires and hurricanes, additional driving up premiums.
Insurers are switching from overlaying the alternative value worth of a property — which restores your property to its unique situation — to overlaying precise money worth, which elements in depreciation.
10 states with probably the most important rise in extreme hail since 2022
Insurify’s knowledge science crew analyzed NOAA knowledge from 2022 to 2024 to find out the states with probably the most important three-year will increase in extreme storms — outlined as those who produced hailstones of 1 inch or bigger — excluding states with 50 or fewer extreme hail occasions in 2024.
Insurify used the FEMA NRI, which supplies county-level local weather knowledge, to establish the cities with the very best extreme hail danger in every state. Insurance coverage charges mirror quotes from Insurify’s database, supplemented by Quadrant knowledge for residence insurance coverage charges.
These states had the very best will increase in main hailstorms over the previous three years.
1. Missouri
Improve in main hail occasions between 2022 and 2024: 182%
Variety of extreme hailstorms in 2024: 437
Most at-risk metropolis: St. Louis
Missouri skilled almost 3 times as many extreme hail occasions in 2024 as in 2022, based on NOAA knowledge. Damaging hail contributes to rising auto insurance coverage charges. Full-coverage prices in Missouri elevated by 29% in 2024, bringing the typical annual value to $2,204.
Insurers pay out extra claims in densely populated areas after climate occasions and lift charges because of this. St. Louis, the second most populous metropolis in Missouri, has the very best hail danger within the state, based on the FEMA NRI.
2. Illinois
Improve in main hail occasions between 2022 and 2024: 108%
Variety of extreme hailstorms in 2024: 216
Most at-risk metropolis: Aurora
Main hail occasions in Illinois have elevated by 108% over the previous three years, based on NOAA knowledge. Aurora, the state’s second-largest metropolis, has the very best hail danger, rising insurers’ publicity to hail-related losses.
Hail injury is one in all many elements behind rising insurance coverage premiums in Illinois. In 2024, Illinois full-coverage charges elevated by 18% to a mean of $1,963 per yr, and residence insurance coverage prices rose by 23% to an annual common of $2,516.
3. Indiana
Improve in main hail occasions between 2022 and 2024: 107%
Variety of extreme hailstorms in 2024: 91
Most at-risk metropolis: Muncie
Main hailstorms in Indiana have surged by 107% since 2022, based on NOAA knowledge. Throughout one out of each 10 of these occasions, hailstones reached a diameter of two inches or bigger, together with a northern Indiana storm that produced softball-sized hail on Might 7.
Extreme hailstorms contribute to the state’s rising insurance coverage charges.
Indiana drivers noticed a 24% enhance in full-coverage prices in 2024, bringing the annual common premium to $1,654. Residence insurance coverage charges elevated by 15% in the identical interval to a yearly common of $2,068.
4. Texas
Improve in main hail occasions between 2022 and 2024: 93%
Variety of extreme hailstorms in 2024: 878
Most at-risk metropolis: Dallas
Texas is weak to a number of pure catastrophes, together with hurricanes, tornadoes, wildfires, and hail. Main hailstorms in Texas elevated by 93% over the previous three years, based on NOAA knowledge. Dallas, the third-largest metropolis in Texas, has a “very excessive” danger of hail injury based on the FEMA NRI, rising insurers’ publicity to losses.
Local weather dangers have pushed main insurers out of Texas and pushed up insurance coverage charges. The state has the fourth-highest householders insurance coverage premiums within the U.S., at a yearly common of $4,789 — 85% greater than the nationwide common.
5. Pennsylvania
Improve in main hail occasions between 2022 and 2024: 88%
Variety of extreme hailstorms in 2024: 81
Most at-risk metropolis: Studying
Main hail occasions in Pennsylvania elevated by 88% between 2022 and 2024, based on NOAA knowledge. The state noticed 81 storms with hailstones measuring no less than 1 inch throughout. Storms producing hailstones of two inches or bigger elevated by 25% over the identical interval.
Pennsylvania drivers might even see the results of rising hail injury claims of their premiums. Full-coverage charges within the state elevated by 38% in 2024 to an annual common of $2,114.
6. Iowa
Improve in main hail occasions between 2022 and 2024: 80%
Variety of extreme hailstorms in 2024: 258
Most at-risk metropolis: Iowa Metropolis
Main hailstorms in Iowa elevated by 80% over the previous three years, based on NOAA knowledge, contributing to rising claims prices for insurers.
Residence insurers in Iowa have pulled again on protection in high-risk areas, with some householders paying for pricey roof replacements to qualify for a coverage, the New York Occasions reported. In 2024, Iowa residence insurance coverage charges elevated by 21% to an annual common of $2,560.
7. Louisana
Improve in main hail occasions between 2022 and 2024: 77%
Variety of extreme hailstorms in 2024: 78
Most at-risk metropolis: New Orleans
Main hail occasions in Louisiana elevated by 77% between 2022 and 2024, contributing to the state’s climate-fueled insurance coverage disaster. Louisiana’s vulnerability to extreme climate, from hailstorms to hurricanes, has made it troublesome for insurers to function within the state. The remaining insurers have quickly raised charges to maintain up with losses.
As insurance coverage corporations pulled again on overlaying high-risk areas, Louisiana legislators enacted legal guidelines permitting insurers to lift charges with out state approval and drop as much as 5% of their residence insurance coverage insurance policies with out cause yearly. Residence insurance coverage premiums elevated by 39% in 2024 to an annual common of $8,372 — the second-highest price within the U.S.
8. Kansas
Improve in main hail occasions between 2022 and 2024: 71%
Variety of extreme hailstorms in 2024: 495
Most at-risk metropolis: Wichita
Kansas skilled 495 main hailstorms in 2024 — a 71% enhance from 2022. Wichita, the state’s most populous metropolis, has the very best danger of hail injury, based on the FEMA NRI. Insurers take into account this danger publicity when setting charges for each automobile and residential insurance coverage insurance policies.
At an annual common price of $3,601, residence insurance coverage prices in Kansas are 39% greater than the nationwide common of $2,584. Common charges in Wichita are even greater, at $4,161 yearly.
9. Colorado
Improve in main hail occasions between 2022 and 2024: 65%
Variety of extreme hailstorms in 2024: 195
Most at-risk metropolis: Aurora
Colorado is among the states most weak to hail, with 195 extreme hailstorms in 2024. Local weather dangers, from hail to wildfires, are a rising downside for Colorado insurers, who elevate charges to cowl losses or pull again on protection to remain solvent. The state faces a mounting insurance coverage disaster.
Colorado householders pay the fifth-highest residence insurance coverage charges within the nation, at an annual common of $4,779. Automotive insurance coverage charges within the state are 21% greater than the nationwide common, at $2,801 yearly in comparison with $2,315.
10. New Mexico
New Mexico skilled a 63% enhance in main hailstorms over the previous three years. Householders within the state pay an annual common of $3,488 for residence insurance coverage, or 35% greater than the nationwide common.
The consequences of extreme climate on insurance coverage prices are much more obvious in Hobbs, New Mexico, the place residence insurance coverage prices a mean of $6,378 yearly. The danger of damaging hail in Lea County, which incorporates Hobbs, is 96.5 out of 100, based on the FEMA NRI.
States the place 2-inch hail has elevated probably the most since 2022
The NOAA defines extreme hail occasions as storms that produce hailstones of 1 inch or bigger — in regards to the measurement of 1 / 4. Some states, nevertheless, are coping with will increase in bigger hailstones.
Contemplating states with no less than 50 extreme hail occasions in 2024, New Hampshire, Missouri, Louisiana, Illinois, and Tennessee noticed the best rise in 2-inch-or-larger hailstones. Egg-sized hail is extra more likely to injury roofs, home windows, and autos, making these states a better danger for insurers.
Excessive hail restore prices drive insurance coverage price hikes throughout the U.S.
Insurers traditionally factored hail injury into insurance coverage pricing in high-risk states like Texas, Colorado, and Missouri. However insurers are warily eyeing extra of the nation as local weather change contributes to more and more frequent and extreme hail occasions.
“No areas of the U.S. are resistant to hailstorms,” stated Friedlander. “The pattern reveals extra extreme convective storm losses impacting areas from Twister Alley to the Atlantic Coast. Even the West Coast has skilled extreme convective storm injury over the previous two years.”
Full-coverage automobile insurance coverage covers weather-related injury, and rising claims contribute to greater charges. Hail injury is 22% extra pricey to restore than the typical complete declare, based on CCC Clever Options. Hail claims are more and more frequent, representing about 12% of all complete claims in 2023, up from 9% in 2020.1
Hail-related losses have additionally elevated for residence insurers as extreme convective storms surge throughout the U.S. Harm is concentrated in a handful of states, based on a CoreLogic report. Texas, Colorado, Illinois, Oklahoma, and Missouri houses accounted for 58% of the properties hit by hail in 2023, with the opposite 45 states comprising 42% of impacts.2
Insurers in high-risk states are shifting from alternative value (RC) to precise money worth (ACV) protection to mitigate roof injury losses. Householders with ACV protection are accountable for the distinction between the roof’s depreciated worth and the present value of roof restore or alternative.
The IRS estimates that roofs sometimes final 27.5 years, depreciating at a price of three.6% yearly. A brand new roof prices a mean of $9,511, based on the house service website Angi. Based mostly on this knowledge, a home-owner with ACV protection for a 10-year-old roof that’s destroyed by climate injury would see an insurance coverage payout of about $5,087 after a regular residence insurance coverage deductible of $1,000.
Substitute value supplies extra monetary safety, paying for the price of restoring a property no matter depreciation, however minus the deductible.
Insurers will proceed to extend the monetary accountability of policyholders — from switching to RC to requiring greater deductibles for wind and hail protection — as losses from extreme climate develop.
Drivers and householders can anticipate premiums to rise in 2025 and past, however they can discover a higher price by procuring round and evaluating insurance policies with a number of insurers.
Methodology
Insurify’s knowledge science crew analyzed preliminary NOAA knowledge from 2022 to 2024 to find out the states with probably the most important three-year will increase in extreme hail. The NOAA defines extreme hail as occasions with hailstones of 1 inch or bigger. Insurify excluded states with fewer than 50 hail occasions in 2024 from the rating.
The information science crew used county-level hail danger knowledge from the FEMA Nationwide Danger Index (NRI) to establish the highest-risk cities, citing the most important metropolis in every county as a result of greater publicity.
Insurify collected Quadrant residence insurance coverage charges, reflecting common 2024 premiums for an HO-3 coverage for householders with good credit score and no claims up to now 5 years. The coverage covers a single-family body home with the next protection limits: $300,000 dwelling, $300,000 legal responsibility, $25,000 private property, $30,000 lack of use, and a $1,000 deductible.
Full-coverage charges mirror 2024 quotes from Insurify’s proprietary database for drivers between ages 20 and 70 with common or higher credit score and a clear driving report. Premiums correspond to insurance policies with bodily damage limits between state-minimum necessities and $50,000 per individual, $100,000 per accident; property injury protection between $10,000 and $50,000; and complete and collision protection with deductibles of $1,000. Obtain extra auto insurance coverage knowledge from Insurify’s knowledge middle.
