Insurers report rising hail damage claims

Hailstones a growing worry with more destructive storms.

Golf balls, tennis balls, softballs. All sound like the stuff of fun games — except when they are used to describe the size of the hailstones that often accompany severe thunderstorms.

Those hailstones can cause significant damage to homes and cars, a growing worry as warming temperatures fuel more destructive storms. In March, baseball-size hail, sometimes called “gorilla hail” because of its heft, was reported in Kansas and Missouri.

The insurance industry reported $60 billion in losses from “severe convective storms” — a catchall name for thunderstorms that may spawn hail, heavy rain, lightning, high winds and tornadoes — last year, said Mark Friedlander, a spokesperson for the Insurance Information Institute, a trade group. That’s almost double from 2022, when the industry reported $31 billion in losses.

Data from the National Oceanic and Atmospheric Administration’s Storm Prediction Center shows 5,879 reports of hailstones of at least 1 inch in 2022, up 17% from 5,020 in 2021. Preliminary data for 2023 shows 6,962 reports, including a significant increase in reports of hailstones of at least 2 inches.

But a weather expert countered that it was unclear whether severe hail had significantly increased in the United States over the long term. Harold Brooks, senior research scientist at the National Severe Storms Laboratory, which is part of the NOAA, said the storm prediction center’s hail data should be viewed with caution.

Reports, for instance, can be submitted by volunteer spotters whose training may vary. Typically, people reporting hail are asked to compare it to the size of a ball or coin, which then is translated into a measurement in inches. In addition, the criteria for severe hail changed in 2010, making historical comparisons challenging.

Still, insurers are reporting bigger hail losses. In 2023, State Farm paid 27,300 claims for hail damage to homes and businesses, up from 23,200 in 2022, said Heather Paul, a company spokesperson. Payouts totaled $6.1 billion last year, more than the previous two years combined.

“We’re seeing severe weather increase,” Paul said.

Inflation is driving up the cost of materials and labor to repair the damage, increasing insurers’ liability. More development in areas affected by severe storms also is a factor. State Farm’s average homeowner hail claim last year was about $17,000, up from $16,000 in 2022, Paul said.

That’s a worrying trend for homeowners because losses mean insurers may get “bold with nipping and tucking of coverage,” said Amy Bach, executive director of United Policyholders, a consumer advocacy group. She said property owners and insurance adjusters have suggested that insurers are “getting aggressive” in denying hail claims.

For instance, insurers may deem roof damage to be merely cosmetic and cover less of the cost to fix it, or determine that it was mostly caused by wear and tear over time. “I’m hearing that a lot,” said Bach, who suggests that homeowners check their policy for any limits or exclusions on coverage.

Friedlander said property insurers were “financial first responders” in helping customers recover from severe weather. “They are paying hail claims based on the coverage as defined in the policy,” he said. “Each insurer has its own criteria for determining when a roof needs full replacement versus if it can be repaired from storm damage.”

Little can be done to protect your house if hail is imminent, but there are ways to fortify your property ahead of time to reduce damage. “If you’re in the market for a new roof, it’s a great time to upgrade your system as a whole,” said Ian Giammanco, lead meteorologist at the Insurance Institute for Business and Home Safety, which researches ways to strengthen homes against storms.

Hail accounts for much of the damage from severe thunderstorms, he said, and roofs bear the brunt of it. So it helps to use strong, impact-resistant roof shingles.

Asphalt shingles, used on 75% of homes in North America, are considered impact resistant if they are rated a 3 or 4 by independent laboratory tests (on a scale of 1 to 4), Giammanco said. The home safety institute conducts further testing and publishes rankings (from “poor” to “excellent”) of commonly available products. Metal or tile roofs can also offer hail protection.