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.

- - Stricter Policy Terms: Policyholders may also encounter changes such as higher deductibles for hail damage, exclusions for cosmetic repairs, or coverage limits. This has left some homeowners vulnerable as they scale back coverage to keep premiums manageable.
  - Underinsurance— A Growing Concern: Rising premiums are driving underinsurance, with property owners opting for reduced coverage or higher deductibles. This trend could leave many underprepared for the next hailstorm season. To learn more about underinsurance, read our blog, Are You Underinsured?

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.

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:

- - Pea = 1/4 inch diameter
  - Mothball = 1/2 inch diameter
  - Penny = 3/4 inch diameter
  - Nickel = 7/8 inch
  - Quarter = 1 inch (hail this size or larger is considered severe)
  - Ping-Pong Ball = 1 1/2 inch
  - Golf Ball = 1 3/4 inches
  - Tennis Ball = 2 1/2 inches
  - Baseball = 2 3/4 inches
  - Teacup = 3 inches
  - Softball = 4 inches
  - Grapefruit = 4 1/2 inches

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!

Severe weather events, such as hailstorms, have become increasingly more common and devastating in recent years. As we enter an era where the cost of insured losses from severe storms continues to rise, it becomes crucial for property owners to act promptly after a date of loss. Get ready to explore the significance of taking immediate action in the wake of extreme weather like this year’s hail storms, gain insights on the rising costs of storm damage, and discover valuable guidance on protecting your property.

Why Acting Promptly Matters

When faced with property damage caused by hail or other severe weather, time is of the essence. Acting promptly allows you to:

Mitigate further damage: Addressing issues quickly can prevent additional damage to your property and save you from costly repairs.
Expedite the claims process: Reporting the loss promptly helps initiate the claims process, ensuring you receive compensation in a timely manner.
Preserve evidence: Acting promptly allows you to document the damage before it worsens, providing crucial evidence for your insurance claim.

Storm Damage (1)

The Soaring Costs of Severe Weather:

Hailstorms have had a significant financial impact, with insured losses skyrocketing in recent decades. Gallagher Re, a reinsurance firm, reports insured losses from hail exceeding $10 billion since 2008. In 2023 alone, insured losses from severe convective storms are projected to surpass $30 billion. With the growing number of severe weather events, it’s crucial to be proactive in protecting your property and securing the necessary coverage.

Reviewing Policy (1)

Protecting Your Property:

To safeguard your property and ensure a smooth claims process, consider the following steps:

Document the damage: Take photographs or videos of the property damage immediately after the event, providing visual evidence for your insurance claim.
Consult with a Public Adjuster: Seeking assistance from a licensed Public Adjuster can help streamline your claims process. They will advocate for your rights, assess the damage accurately, and help negotiate a fair settlement with your insurance carrier based on your states guidelines.
Mitigating further damage: Take reasonable steps to prevent additional damage to your property, such as covering exposed areas or making temporary repairs. Keep receipts and document the expenses incurred.

Acting promptly after a date of loss is essential to protect your property and ensure a smooth claims process. With the increasing costs of severe weather events, it’s crucial to be proactive in securing the necessary coverage and taking immediate steps to mitigate further damage. By documenting the damage, reporting the loss promptly, and seeking assistance from a Public Adjuster, you can navigate the claims process with confidence.

Remember, time is of the essence when it comes to protecting your property from severe weather-related losses. Act promptly, protect your investment, and fight for the coverage you deserve. If you have any questions, please reach out to our team today.

The Impact of the 2024 Hail Season on Insurance Premiums