US Home Insurance Loss Costs Surge as 2025 Severity Peaks

A 2026 U.S. Home Trends Report from LexisNexis Risk Solutions shows all‑peril loss severity rose 25.9% in 2025, reaching its highest level in seven years and pushing overall loss cost 50% higher than in 2019. Fire and lightning were the dominant perils, driven by the January 2025 Los Angeles wildfires, while a central March tornado outbreak became the second‑costliest billion‑dollar event of the year.

Verisk’s Q1 2026 Property Report notes U.S. claim volume fell 8.9% year‑over‑year, with total claims 13.1% below the five‑year average. Policy language changes—such as increased use of actual‑cash‑value‑only loss provisions and higher percentage deductibles—are cited as key factors suppressing filings. Water claims accounted for 31.1% of residential claims, wind 20.4%, while hail claims dropped 23.6%. Roof replacement costs jumped 33% and repair costs rose 25% in 2025 despite the decline in claim frequency. Winter storms Fern and Hernando generated over 46,000 ice, snow and collapse claims with $478 million in estimated replacement costs.