Convective storms have made a significant impact this year, leading to concerns about rising property insurance rates in certain states. A recent report from CoreLogic sheds light on this issue, outlining the risks associated with severe convective storms as we move into 2025.
The report details the frequency and severity of these storms, highlighting how they affect different regions. It specifically looks at the risks of hail, tornadoes, and straight-line winds across various states and metropolitan areas.
One of the most alarming findings is the risk in the Chicago metro area. Here, nearly 3 million homes are at risk of damage from hail, and the same number face threats from tornadoes and straight-line winds. The total reconstruction costs for these homes are estimated at around $1.4 billion.
Other major cities are also facing significant risks. In New York, about 2.28 million homes are at risk from winds of 65 mph or more, with a reconstruction value of $1.2 billion. Similarly, Dallas, Texas, has 2.1 million homes at risk, also valued at $1.2 billion.
The report also highlights the impact of damaging hail in Texas during 2024, which affected over 180,000 homes. Nebraska followed with nearly 70,000 homes impacted, while Missouri, Oklahoma, and Kansas also reported significant damage.
As these extreme weather events continue, property insurance rates are likely to rise, especially in the hardest-hit areas. Homeowners in these regions may need to prepare for potential increases in their insurance costs as the risks from severe weather events grow.