Severe Convective Storms Now World's Costliest Natural Disaster, Impacting U.S. Homeowners
A 2025 study by climate risk modeling firm First Street found that severe convective storms—such as tornadoes and hail—are now the world’s most expensive insured natural disasters, surpassing hurricanes for the first time. These high-impact weather events cause recurring damage across broad areas rather than from a few large-scale incidents like traditional cyclones. In 2025 alone, these storms accounted for $82 billion in global losses, with U.S. damages reaching $68 billion due to its concentration of insured property. Over the past 25 years, convective storm-related insurance payouts have totaled $794 billion—exceeding combined losses from floods, earthquakes, and droughts. The rising frequency of these storms is prompting insurers to increase premiums rapidly in high-risk regions like parts of the Midwest and northern Texas. This trend adds pressure on an already strained U.S. housing market, where affordability challenges persist due to a shortage of homes, elevated prices, higher mortgage rates, and construction cost inflation.
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Topics: climate change insurance losses natural disasters severe convective storms