The Impact of the 2024 Hail Season on Insurance Premiums

2024 felt like a scene out of a disaster movie for property owners across the United States. Relentless hailstorms—with some producing record-breaking hailstones over six inches in diameter—battered properties and overwhelmed insurers. While the physical damage was evident, the financial fallout, particularly rising insurance premiums, continues to burden property owners.

Here’s how the 2024 hail season reshaped insurance premiums and what property owners need to know.

2024 Hailstorms by the Numbers: The Devastation in Context

The 2024 hail season left billions of dollars in damages in its wake. NOAA’s preliminary data highlights that hailstorms in key states, including Texas, Nebraska, and Oklahoma, caused significant destruction. Texas alone reported hailstones exceeding 6.4 inches in diameter during a May storm—one of the largest hailstones recorded in the U.S. this year.

In Nebraska, hailstorms ravaged both urban and rural areas, with agricultural losses compounding property damage costs. Nationwide, damages from hail-related storms contributed significantly to the year’s $23 billion in insured severe storm losses.

The sheer volume of claims has not only stressed insurance carriers but also prompted discussions about how to price future risks effectively. To learn more about how the increase of natural disasters has been impacting premiums, read our full blog: Is Insurance A Fading Safety Net?

Why Are Premiums Rising After the 2024 Hail Season?

The connection between hailstorms and rising premiums isn’t new, but the 2024 season has pushed insurers to adopt even stricter measures. Here’s why:

1. Unprecedented Claims Payouts

With 2024 producing some of the largest hailstorms on record, insurers faced an overwhelming volume of claims. NBC News reported, “So far this year in the U.S., thunderstorms have been responsible for about $61 billion in economic losses, according to Bowen. Hail was likely responsible for between $31 billion and $49 billion of that total. In the same period, tropical storms and flooding together have accounted for $14 billion in losses.”

2. Rising Repair Costs

The cost of repairs has surged, fueled by inflation and material shortages. Roofing materials, a frequent victim of hail damage, saw price increases of over 20% in 2024, while labor shortages consequently slowed repair times. These factors have driven up claim costs, prompting insurers to adjust premiums accordingly.

3. Advanced Risk Modeling

Insurers are relying on updated climate models that predict increasingly severe hailstorms in the future. These models influence underwriting practices, resulting in higher premiums for properties in hail-prone regions. Even though hailstorms “cause more monetary damage annually than tornadoes, on average, research on the former had stalled until recent advances in radar and weather modeling,” Evan Bush, NBC News. Several institutions plan to conduct field studies around hailstorms and their growing intensity.

How Premium Hikes Are Affecting Property Owners

Property owners in hail-prone areas are already feeling the financial sting. Texas consistently leads the nation in billion-dollar weather disasters, driving property insurance costs to unprecedented levels.

 

To find out if there are any gaps in your coverage, submit your insurance policy for review today!

What Can Homeowners Do to Navigate These Changes?

While rising premiums are challenging, property owners can take proactive steps to help mitigate the financial impact, for example:

1. Invest in Impact-Resistant Materials

Opting for impact-resistant shingles or metal roofing can qualify homeowners for discounts. These materials reduce the likelihood of severe hail damage, lowering the risk for insurers.

2. Conduct Regular Policy Reviews

Regularly reviewing your insurance policy with a qualified professional can help identify coverage gaps and potential savings. This ensures you’re adequately protected at the least amount of cost possible.

3. Work with a Public Adjuster

If your property sustains hail damage, consider working with a public adjuster like Premier Claims. Public adjusters can help maximize your settlement and help ensure you’re compensated fairly for all damages.

4. Advocate for Legislative Action

Collaborating with state governments to establish reinsurance programs or stabilization initiatives can help mitigate premium hikes for hail-prone communities.

A Glimpse into the Future: Will 2025 Be Any Better?

Early forecasts suggest that 2025 may bring similar challenges, with weather models predicting another active hail season. Property owners can take proactive measures now, from upgrading roofing to revisiting their insurance policies, to prepare for the next round of storms.

The 2024 hail season underscored the need for property owners to stay informed and proactive. Rising insurance premiums are a direct response to the staggering costs of hail damage, but there are steps you can take to minimize the financial burden. Whether it’s through impact-resistant upgrades, policy reviews, or public adjuster services, preparation is key to weathering the storm—both literally and financially.

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The Impact of Hail

Understanding Size, Formation, and Damage

Hail, a type of solid precipitation that forms within thunderstorm updrafts, has fascinated and intimidated humans for centuries. Frequently causing damage to homes, cars, and aircraft, and posing a significant threat to people and livestock, these formidable ice orbs are a spectacle of nature’s power.

From Raindrop to Hailstone: How Hail Forms

Hailstones take birth when ordinary raindrops are lifted by thunderstorm updrafts into the frosty regions of the atmosphere. Here, they freeze and start their journey of growth, colliding with other liquid water drops that freeze onto their surface. This growth process can result in hailstones having layers of clear and cloudy ice, depending on the conditions they encounter during their ascent.

Interestingly, these layers don’t form due to the hailstone going through up and down cycles within the thunderstorm, contrary to popular belief. Thunderstorm winds are not just vertical; they also have a horizontal component that can significantly influence the hailstone’s trajectory and growth.

Gravity’s Pull: How Hail Falls To The Ground

A hailstone’s descent is all about timing and balance. It falls when it becomes too heavy for the thunderstorm’s updraft to support or if the updraft weakens. Smaller hailstones, due to their lightweight, can be blown away from the updraft by horizontal winds. As such, larger hail tends to fall closer to the updraft than smaller hail.

The speed of falling hailstones depends on a plethora of factors: their size, the friction they encounter with the surrounding air, local wind conditions, and even the degree of their melting. The expected fall speed ranges from 9 mph for small hailstones to over 100 mph for those with diameters exceeding 4 inches.

The Geography of Hail: Where it Strikes the Most

In 2024, the United States once again claimed its title as the hail damage capital, with Nebraska, Colorado, and Wyoming—known as “Hail Alley”—experiencing the most frequent storms. These states endure an average of 7-9 hail days per year, with the 2024 season breaking records for both frequency and severity.

Hailstorms create paths known as hail swaths as the storms move while the hail falls. These swaths can vary from a few acres to an area 10 miles wide and 100 miles long. Some storms churn out a mass of small hail instead of large hailstones, which can create hazardous conditions resembling icy winter roads when covering roadways completely.

Hail Size: From Peas to Grapefruits

According to NOAA National Severe Storms Laboratory, the largest hailstone recovered in the United States fell in Vivian, South Dakota, on June 23, 2010. It had a massive diameter of 8 inches, a circumference of 18.62 inches, and weighed almost 2 pounds. However, hail sizes vary significantly. They’re often compared to everyday objects for easier estimation:

In the end, it’s crucial to remember the damage potential of hail and take appropriate safety measures during hailstorms. From car windshields to rooftops and from crop fields to livestock, hail can wreak considerable havoc. Stay informed and stay safe!

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A Property Owner’s Guide to Preparing for Winter

Winter Prep for Property Owners

Winters are no joke for snow-prone states. With temperatures plummeting and snowstorms likely inevitable, now is the time to start winter-proofing your property. By taking proactive steps, you can save yourself from headaches and costly repairs. Whether you’re a seasoned property owner or new to the fierce winter weather, we’ve collected key tips to help prepare your property. 

1. Inspect and Repair Your Roof

Your roof is your property’s primary shield against winter storms. Any weakness— a missing shingle, loose flashing, or an unnoticed leak—can create a disaster once the snow piles up. Snow and ice build-up adds significant weight to your roof, and if there’s already damage, it increases the risk of leaks or even a roof collapse.

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2. Clear Your Gutters and Downspouts

Falling leaves and debris often clog gutters during the fall, which can become a serious issue during winter. Clogged gutters prevent water from draining properly, leading to ice dams—when water gets trapped and freezes, causing roof damage and leaks.

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3. Protect Your Pipes from Freezing

Frozen pipes are a property owner’s worst nightmare. When water inside pipes freezes, it expands, putting immense pressure on the pipes. This can cause them to burst, leading to water damage, costly repairs, and a long-term headache. The areas most vulnerable to freezing include pipes in unheated spaces like attics, basements, garages, crawl spaces, and exterior walls. With a few proactive measures, you can help keep your pipes safe and flowing smoothly throughout the winter season.

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4. HVAC System Checks

The last thing you want is for your heating system to fail during a deep freeze. Your heating, ventilation, and air conditioning system will be working overtime as the temperature drops. 

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5. Trim Overhanging Trees

Heavy snow or ice can cause weak or overhanging branches to break, which could cause damage to your roof, siding, or windows.

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6. Seal Windows and Doors

Energy efficiency is critical during the winter season, and even small drafts can cause your heating system to work overtime, leading to higher energy bills. Unsealed windows and doors also allow cold air and moisture to seep in, which can lead to mold growth and wood rot.

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7. Inspect Your Foundation and Exterior Walls

Cracks in your property’s foundation or exterior walls can let cold air and moisture seep in, leading to more severe structural problems when water freezes and expands.

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8. Emergency Preparedness

Review and update your emergency preparedness plan and inform all occupants of what to do during severe weather events this winter. 

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9. Policy Review

Before winter sets in, we recommend reviewing your property insurance policy. Coverage needs can change from year to year, so it’s important to make sure your property stays adequately protected. Our team is here to review your policy so you know of potential gaps in your coverage this winter. Submit your policy for review today!

Get Ready Before the First Snowfall

Preparing your property for winter isn’t just about staying warm—it’s about protecting your investment. By taking the time now to inspect, repair, and winterize your property, you’ll keep your property safe and hopefully prevent costly repairs down the road. Winters are tough, but your property doesn’t have to suffer. 

To get more tips on winter property maintenance and stay informed about seasonal property care, join our blog community using the form below!

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Water Damage: Categories & Classes

When dealing with water damage, it’s crucial to understand the severity and potential risks involved. Water loss is classified by contamination level. Its class denotes damage extent and evaporation rate. As your trusted public adjusters, we provide crucial information about water loss categories and classes, guiding you through challenges.

Water Loss Categories:

Category 1:

Category 1 water loss is considered the least severe, as it originates from a sanitary water source with minimal health risks if ingested or inhaled. Common examples include broken water supply lines, sink or tub overflows with no contaminants, melting ice, and broken toilet tanks.

Category 2:

Category 2 water loss involves water with contamination, posing a potential risk of illness upon contact or consumption. This type of water may harbor unsafe levels of microorganisms, nutrients, and organic or inorganic matter. For instance, overflows from washing machines, discharge from dishwashers, or toilet bowl overflows can fall into this category.

Category 3:

The most severe category, category 3 water loss, contains highly contaminated water with pathogenic, toxigenic, or harmful agents, such as sewage or floodwater from external sources. It can be caused by events like tropical storms or weather-related disasters.

Water Loss Classes:

Class 1:

As for Class 1 water losses, they impact a limited part of a room or area, or involve larger spaces with minimal moisture absorption. Moreover, this class presents the least amount of water, absorption, and evaporation.

Class 2:

Category 2 water loss, also known as gray water, involves water containing contamination, posing potential health risks. It may harbor unsafe levels of microorganisms, nutrients, and organic or inorganic matter. Examples of this type include overflows from washing machines, discharge from dishwashers or washing machines, and overflows from toilet bowls.

Class 3:

In a class 3 water loss, water may have come from overhead, resulting in saturated ceilings, walls, carpets, insulation, and sub-flooring throughout the entire area. Consequently, this class involves the greatest amount of water.

Class 4:

Class 4 water losses occur when materials with low permeance porosity, such as hardwood, plaster, brick, and concrete, are affected. These cases often have deep pockets of saturation, necessitating longer drying times and specialized methods.

Jimmy Marlow from Action News Jax reported in Jacksonville, Florida that “Regency Square Mall, once a bustling retail destination in the 90s and early 2000s, has now fallen into a state of disrepair. The mall’s roof has caved in, leading to extensive water damage and the spread of mold, raising concerns for both tenants and the local community.” Being proactive when it comes to water damage is imperative. Understanding the categories and classes of water loss is essential for assessing the severity of damage and implementing the appropriate recovery measures. As your premier public adjusting firm, we are here to support you through the challenges of water damage, providing expert guidance and compassionate assistance every step of the way. Together, we’ll navigate the complexities of water loss and ensure we restore your property to its fullest potential.

 

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