Insurers report increasing claims for hail damage

One weather expert countered that it was unclear whether heavy hail had increased significantly in the United States in the long term. Harold Brooks, senior researcher at the National Laboratory for Severe Stormswhich is also part of NOAA, said the Storm Prediction Center’s hail data should be viewed with caution.

For example, reports can be filed by volunteer spotters, whose training may vary. (Normally, people reporting hail are asked to compare the size of a ball or coin, which is then translated into inches.) Also, the criteria for heavy hail changed in 2010, making historical comparisons difficult.

Yet insurers report greater 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 spokeswoman for the company. Payouts totaled $6.1 billion last year, more than the previous two years combined.

“We are seeing severe weather increasing,” Ms Paul said.

In addition, inflation drives up the costs of materials and labor to repair the damage, increasing insurers’ liability. More development in areas affected by severe storms is also a factor. The average State Farm hail claim for homeowners was about $17,000 last year, compared to $16,000 in 2022, Ms. Paul said.

That’s a worrying trend for homeowners because losses mean insurers “could become bold in phasing out coverage,” said Amy Bach, executive director of United Policyholders, a consumer advocacy group. Property owners and insurance adjusters have suggested that insurers are “becoming aggressive” in denying hail claims, she said.