Severe Convective Storms Surpass Hurricanes as Top Weather Risk for Homeowners
Severe Convective Storms Surpass Hurricanes as Top Weather Risk for Homeowners
US · Published Jul 28, 2026
A recent study by climate risk modeling firm First Street reveals that severe convective storms (SCS) have become the costliest insured natural disasters globally, surpassing hurricanes and other cyclones in
These storms, which include tornadoes, hail, and severe winds, accounted for one-third of global natural disaster economic losses in 2025, totaling $82 billion. Of this, $68 billion in losses were concentrated in the U.S., where the high density of insured residential, commercial, and industrial properties amplifies the financial impact. Hail is identified as the primary driver of insurance payouts, followed by severe winds. The study highlights that SCS are becoming more frequent and intense due to climate change, posing significant challenges for homeowners and insurance companies alike. The Midwest and northern Texas are particularly affected, with Illinois and Ohio identified as high-risk areas due to their urban density and valuable real estate.

Impact & Risks

Severe convective storms are increasingly affecting homeowners, particularly in the U.S., where insured properties are highly concentrated. The financial impact of these storms is significant, with $68 billion in losses recorded in 2025 alone. Regions such as Illinois, Ohio, North Carolina, and Georgia are especially vulnerable due to their dense urban areas and valuable real estate. As these storms become more frequent and severe, homeowners may face rising insurance premiums, particularly in high-risk areas like the Midwest and northern Texas. The study also warns that SCS could become the third-costliest natural disaster globally in the next decade, driven by economic disruptions such as reduced commercial productivity and infrastructure damage.

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