MALVERN, PA — Severe convective storms caused $51 billion in insured losses in the United States in 2025, marking the third consecutive year losses from such events exceeded $50 billion, according to a new members-only report from the Insurance Information Institute.
Total economic damages from tornadoes, hail, straight-line winds, and severe thunderstorms exceeded $68 billion, making 2025 the third costliest year on record for these events.
The report found that non-weather factors, including population shifts into high-risk areas, legal system costs, and rising labor and construction expenses, account for up to 90% of loss growth since 2000.
“Severe convective storms are no longer a ‘secondary’ regional or seasonal concern,” said Sean Kevelighan, chief executive officer of the Insurance Information Institute.
Kevelighan said addressing rising losses will require changes in land use, building standards, legal frameworks, and insurance models.
The report highlighted a record 300 tornadoes in March 2025, which resulted in $8.4 billion in insured losses, and an EF5 tornado in North Dakota in June, the first such storm recorded in the United States in 12 years.
Hail remains the largest driver of claims, accounting for up to 80% of severe storm-related insurance claims in a typical year.
Roof damage represents an estimated 70% to 90% of insured residential catastrophe losses tied to hail events.
The report also cited a National Science Foundation-funded study, known as ICECHIP, in which more than 100 scientists analyzed hail formation and roofing durability across the Great Plains in 2025.
The Insurance Information Institute said investments in risk mitigation, including improved construction standards, data analytics, and alternative insurance structures, could reduce future losses, noting that each $1 spent on mitigation can save up to $33 in disaster costs.
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