Hail leads insured losses, on par with major hurricanes

IRVINE, Calif., March 24, 2026 - More than 43.5 million U.S. properties are at moderate or greater risk from damaging hail, according to a new report from Cotality, which finds hailstorms can now cause financial losses comparable to a Category 4 hurricane.

These properties represent roughly $17.84 trillion in reconstruction cost value (RCV). The findings come from Cotality's 2026 Severe Convective Storm Risk Report, released today, which highlights the growing risk of hail as a major shift in U.S. extreme weather patterns.

Hail emerging as a major catastrophe loss driver

In 2025, the U.S. recorded 142 days with damaging hail - seven more than in 2024 and well above the 20-year average of 122 days. During those events, hailstones two inches or larger struck more than 600,000 homes, representing roughly $177 billion in RCV.

The report finds hail is becoming both more frequent and more financially destructive as housing growth and rising property values concentrate more assets in storm-prone regions.

"Hail doesn't command the same headlines as hurricanes, floods, or wildfires, but the data shows it has become one of the most financially destructive natural hazards facing the property market," said Jon Schneyer, Cotality's Director of Research and Content. "Once considered secondary with relatively modest losses, this 'death-by-a-thousand-paper cuts' peril is now one of the biggest drivers of property insurance claims. That shift is placing growing pressure on insurers and recovery teams in what has become a high-stakes relay to restore damaged communities."

Cotality's modeling shows that, across the spectrum, from the rarer 1-in-500 year to the more frequent 1-in-50 year severe convective storm (SCS) event, hail is the primary driver of loss. At the more extreme 1-in-500 year loss, hail alone could generate roughly 80%, or $58 billion, of the estimated $71 billion in all SCS perils (including tornadoes, straight-line winds, and hail) insured losses.

Even less extreme events can produce enormous losses. A severe hailstorm expected to occur once every few decades could generate nearly $30 billion in insured losses - on par with a major landfalling hurricane.

In 2025, more than 235,000 Texan homes experienced damaging hail, far exceeding any other state. Risk remains specifically concentrated in the Texas Triangle - Dallas-Fort Worth, Houston, Austin, and San Antonio - which together account for more than $2.2 trillion in exposed RCV with moderate or greater hail damage risk. Wyoming also ranked highly with more than 41,000 impacted homes, followed by Oklahoma, Wisconsin, and Kansas.

Tornado and wind exposure remain widespread

Tornadoes and straight-line winds represent another major layer of risk across the U.S. Cotality estimates that more than 76 million homes face moderate or greater tornado risk, representing more than $27 trillion in RCV.

Another 64 million homes are exposed to damaging winds of 65 mph or stronger, representing more than $23 trillion in RCV.

Increasing complexity for insurers and recovery teams

"As expanded urbanization development puts more, larger, and more costly to repair property in harm's way, storm losses are growing in both scale and complexity," continued Schneyer. "For insurers and reinsurers, accurately capturing not just the volatility but also the aggregated magnitude of these events is critical. When underwriters are able to accurately price knowing the unique vulnerabilities of each individual property and modelers can map extreme risks with confidence, capital and resources are secured before a storm strikes. After an event, precise weather verification can confirm whether the damage being claimed was from the most recent storm."

"The industry needs coordinated, data-driven insights across the entire recovery ecosystem to ensure communities can rebuild quickly and resiliently," he said.

Cotality's report also examines storm risk trends across Europe, where changing weather patterns and expanding urban exposure are similarly increasing the financial impact of localized storm events.

To read the full Severe Convective Storm Risk Report, visit the Cotality website.

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About Cotality

Cotality accelerates data, insights, and workflows across the property ecosystem to enable industry professionals to surpass their ambitions and impact society. With billions of data signals across the life cycle of a property, we unearth hidden risks and transformative opportunities for agents, lenders, carriers, and innovators. Get to know us at cotality.com.

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