Severe weather events are hitting the U.S. harder and more often than before, causing big problems for both small businesses and homeowners. In 2024, the country faced 24 major weather disasters, each with losses exceeding $1 billion. These storms include hurricanes, wildfires, hailstorms, and floods, and they have made clear just how important it is for people to be prepared and have the right insurance.
The kinds of severe weather causing the biggest damage vary across regions but include hurricanes with winds over 150 mph and storm surges higher than 20 feet, especially on the Gulf Coast and Atlantic states. Tornadoes strike more than 1,000 times each year, mostly in states like Oklahoma, Kansas, and Alabama, often ripping off roofs and damaging power lines. Wildfires are on the rise too, with 2024 setting a record for the number of fires and acres burned, including the massive Smokehouse Creek Fire in Texas. Meanwhile, hailstorms cause billions in damage, particularly in Texas and nearby states, and flooding remains the costliest disaster nationwide.
The risk is no longer limited to traditional hot spots. The Southeast and Appalachian regions now see more flash floods, severe storms, and tornadoes. States in the Mountain West, like Colorado, deal with wildfires and droughts along with heavy snow and freezing cycles. The Gulf Coast and Central Plains remain vulnerable to tornadoes and high winds. The Western U.S. faces wildfires, mudslides, and unique challenges such as Alaska’s rapidly changing climate and extreme winter storms.
For small businesses, even a short storm can cause major disruptions. Heat or cold waves might break heating and cooling systems. Heavy rain, wind, and hail can damage buildings and equipment. Power outages, often from ice storms or hurricanes, can shut down operations for days. Snow and ice not only slow down customers and employees but also raise safety concerns like slip-and-fall accidents. Revenue takes a hit when businesses close, as seen with a Texas river outfitter that lost 60% of its income after local flooding.
It’s important to remember that not all insurance covers every type of damage from severe weather. Flood damage, for example, usually requires separate insurance. Some policies may exclude certain wind damage or earthquakes depending on the region. Knowing your coverage inside and out can prevent surprises after a storm hits.
Key insurance policies to consider include commercial property insurance, flood insurance, business income insurance, and commercial auto insurance. These can cover physical damage, lost income, and protect vehicles from weather-related harm.
Insurance companies like Central Insurance are stepping up, offering rapid response teams and proactive support. After Hurricane Helene in 2024, Central processed nearly 1,900 claims, settling most within 45 days, and even provided extra help by bringing food and water to those affected.
To weather these storms better, preparation is key. Businesses should have a clear emergency plan, reinforce their buildings, keep detailed records, and stay informed through weather alerts. Talking to an insurance agent can ensure coverage fits the specific risks of your area and business.
The rise in severe weather is a clear sign that we all need to be ready. Taking steps now can save money, protect property, and help keep businesses running when the next storm arrives.