The Next Insurance Crisis: Hailstorms Are Quickly and Quietly Driving Up Home Insurance Costs

While hurricanes, wildfires, and tornadoes grab headlines, hailstorms’ sheer frequency and shifting severity are leading to higher costs for homeowners. And hail risk is showing up in more than just rising premiums.

Expensive claims costs are leading insurers to share more of the financial burden of climate risk with home insurance policyholders. Typically, this happens through an additional and often higher deductible for wind and hail damage. For example, the average wind and hail deductible in Texas is $7,761, according to Insurify data. Facing those higher out-of-pocket costs, some homeowners skip filing a claim altogether.

Only a few months into this year, one-third (34%) of homeowners had already experienced severe weather damage to their home or surrounding properties, according to an Insurify survey of 1,000 insured American homeowners in counties with historic or more recent severe storm risk. Among them, 30% reported that hail caused the damage.

Severe convective storms, which include hail, thunderstorms, and tornadoes, are among the largest drivers of insurance losses.[1] Estimates indicate hail accounts for 50% to 80% of all losses from severe convective storms.[2] To understand where homeowners are taking on more financial burden, Insurify data scientists pulled average wind and hail deductibles by state from Insurify’s proprietary home insurance quote database.

Key findings

Homeowners in Texas, Massachusetts, and New Jersey have the highest average wind and hail deductibles of more than $7,700, according to Insurify data.
In 2024, severe convective storms caused significant insured losses in Nebraska. Since then, average home insurance premiums rose by 25%, and Insurify projects another 13% increase in 2026.
Nearly two-thirds (65%) of homeowners surveyed reported that severe weather had damaged their roofs. Among them, severe thunderstorms (50%) and hail (43%) most frequently caused the damage.
More than half of homeowners surveyed said they’d invest money into home improvements to mitigate climate risk if it would reduce their home insurance costs.
Nearly three-quarters (72%) of surveyed homeowners would make some kind of sacrifice to lower their insurance premiums.

The 10 states with the most costly hail deductibles

Hail Alley, Tornado Alley’s lesser-known sibling, covers part of the central U.S., especially from Texas up through Oklahoma and Kansas and into Nebraska and Colorado.[2] From 2023 to 2025, 45% of all severe hail events to hit the U.S. occurred in those states, according to an Insurify analysis of National Oceanic and Atmospheric Administration (NOAA) data. NOAA defines severe hail as any hail larger than 1 inch in diameter.[3]

Many homeowners in these storm-prone states are seeing higher home insurance deductibles for both hail and wind coverage, which insurers usually combine under one deductible. So, policyholders would have to pay their wind/hail deductible for each related claim before insurance coverage would kick in.

For example, Texas experiences wind and hail risk that varies broadly between different parts of the state. Texas has the highest wind and hail deductible as a percentage of dwelling coverage amount, at 2.2%, according to Insurify data.

To find the top 10 states where homeowners are taking on additional financial risk, Insurify ranked wind and hail deductible amounts as a percentage of the average dwelling coverage in each state. This ensures states with higher average dwelling coverage amounts aren’t overrepresented due to more costly property. Wind and hail deductibles typically range from 1% to 5% of a home’s dwelling coverage amount.

1. Texas

Wind/hail deductible (percent of dwelling): 2.2%
Average wind and hail deductible amount: $7,761
Average annual home insurance premium: $4,380

Texas accounted for 16.7% of all U.S. hail events between 2023 and 2025, according to NOAA data. But it’s not just that it’s the second-largest state: It also ranks among the top 10 states for hail-event density per square mile over the last three years. It leads the nation in properties with moderate or greater hail exposure. Nearly 8 million properties add up to $3.1 trillion of exposed reconstruction cost value, according to Cotality.[4]

A significant share of the hail hitting Texas is larger, severe hail that can damage roofs, siding, and windows. In 2025, hail 2 inches or larger fell on more than 235,000 Texas homes, according to Cotality.

That extremely elevated risk has contributed to higher home insurance premiums and separate, costlier deductibles for wind and hail risk. Texans have an average wind and hail deductible of $7,761, or about 2.2% of the state’s average dwelling coverage amount, according to Insurify data.

2. Louisiana

Wind/hail deductible (percent of dwelling): 2%
Average wind/hail deductible amount: $5,991
Average annual home insurance premium: $5,050

Louisiana isn’t a top state for hail risk, but the threat of severe wind damage from hurricanes has led homeowners to face higher premiums and deductibles. Louisiana homeowners have an average wind and hail deductible of $5,991, according to Insurify data.

In 2024, the most recent year with final NOAA data, just 1.4% of all hail events in the U.S. occurred in Louisiana, but the majority of those events (91%) were severe. That year, hail caused $626,000 of property damage in the state, according to the National Centers for Environmental Information (NCEI).[5] In the same year, just one hurricane caused $81 million in property damage in Louisiana.

In 2024, Louisiana repealed its “three-year rule,” which barred insurers from dropping policies that had been in place for at least three years. After the change, Louisiana Farm Bureau Mutual Insurance Company notified the commissioner that it had begun writing more wind and hail coverage for homeowners with confidence that it could do so while “effectively maintaining their book of business.”[6]

3. Oklahoma

Wind/hail deductible (percent of dwelling): 2%
Average wind/hail deductible amount: $6,044
Average annual home insurance premium: $4,962

Oklahoma’s high average wind and hail deductible of $6,044 and elevated home insurance premiums reflect the significant risk that severe convective storms pose to properties across the state. In the last three years, 67% of Oklahoma’s hail events were severe, according to NOAA data.

Oklahoma is also a good case study for how population growth and development in hazard-prone areas can significantly increase risk exposure. In Oklahoma City, building stock increased by 40% and developed land area increased by 60% between 1990 and 2025, according to a 2026 Allianz report.[2] Now, across the state, more than $467 billion of reconstruction cost value is exposed to moderate or greater hail damage, according to Cotality.[4]

4. New Jersey

Wind/hail deductible (percent of dwelling): 1.8%
Average wind/hail deductible amount: $7,857
Average annual home insurance premium: $1,767

In New Jersey, severe wind is a more consistent home insurance risk than hail, since hail risk can vary significantly from year to year. For example, New Jersey experienced just eight severe hail events in all of 2024 and 2025, but it saw 42 in 2023.

Nearly 921,000 homes across the state have a moderate or greater risk of hail damage, according to Cotality.[4] That adds up to $608 billion in reconstruction cost value, or about $660,000 per home. New Jersey has fewer at-risk homes than a state like Oklahoma. But its higher reconstruction cost exposure suggests that costly repairs along the East Coast lead to greater financial exposure for insurers in New Jersey.

New Jersey’s high wind and hail deductible but below-average home insurance premiums show how it can take time for climate risks to affect premiums. As a prior-approval state for insurance, New Jersey insurers must seek regulatory approval before instituting a rate increase.

5. South Dakota

Wind/hail deductible (percent of dwelling): 1.8%
Average wind/hail deductible amount: $5,213
Average annual home insurance premium: $2,761

Over the last three years, 3.7% of all U.S. hail events occurred in South Dakota, ranking it among the top 10 nationwide. The majority of its hail events are also severe: In 2023 and 2024, 81.9% of hailstorms in South Dakota had hail 1 inch or larger. The state also holds the title for the largest hailstone recorded in the U.S., an 8-inch hailstone, about the diameter of a volleyball, that crashed through a deck in 2010.[7]

The majority of South Dakota homes have a moderate or greater risk of hail damage, according to Cotality, which contributes to the state’s higher wind and hail deductible.[4] But hail hasn’t caused a significant amount of property damage in recent years, just $40,000 since 2023, according to the NCEI.[8] Still, 770 severe hail events have hit the state since 2023, causing more than $1.8 million in crop damage.

6. North Carolina

Wind/hail deductible (percent of dwelling): 1.8%
Average wind/hail deductible amount: $5,584
Average annual home insurance premium: $2,937

Damaging severe storms and hurricanes in North Carolina have led to insurance premium increases in recent years, and another increase is set to take effect in June. In 2024, the rate bureau, representing home insurers, requested a 42% average rate increase in North Carolina to align premiums with the elevated risk.[9]

The state and rate bureau agreed to an average base increase of 15%. A 7.5% increase took effect in 2025, and another 7.5% increase will take effect on June 1, 2026, though it will vary by location. The rate bureau can’t pursue further increases until after June 1, 2027.

Still, North Carolina’s elevated average wind and hail deductible of $5,584 shows that home insurers are offsetting their financial exposure in other ways. Though wind may pose a greater risk to North Carolina homeowners, 83% of hail events statewide were severe in 2023 and 2024.

7. Massachusetts

Wind/hail deductible (percent of dwelling): 1.7%
Average wind/hail deductible amount: $7,788
Average annual home insurance premium: $2,170

Massachusetts experienced just 36 severe hail events in the last three years, but its high average wind and hail deductible demonstrates two things: expensive rebuild costs and significant wind risk. Wind and hail losses accounted for 10.7% of total losses in 2023 and 2024, according to the state insurance division’s 2024 Annual Home Insurance Report.[10]

Wind risk is especially elevated in exposed coastal areas like Cape Cod, Martha’s Vineyard, and Nantucket. The state’s FAIR Plan writes 39.6% of the home insurance in those areas, compared to less than 12% in each of the other counties. Coastal areas have the highest wind deductibles, according to the report.

8. North Dakota

Wind/hail deductible (percent of dwelling): 1.5%
Average wind/hail deductible amount: $4,791
Average annual home insurance premium: $2,422

Hail caused more than $15 million in property damage in North Dakota in 2024. Various storms contributed, but a July hailstorm caused the most significant damage, dropping hailstones up to 4.5 inches, about the size of a grapefruit, on homes in Bismarck, the state capital. That year, 94.8% of North Dakota hail events were severe, according to NOAA data.

Average home insurance costs in North Dakota are a little below average, but its costly wind and hail deductible shows how the risk is hitting homeowners’ pockets. When it comes to risk affecting premiums, it can take some time. Home insurers in North Dakota must seek regulatory approval for rate increases exceeding 5%.[11]

9. Nebraska

Wind/hail deductible (percent of dwelling): 1.5%
Average wind/hail deductible amount: $5,059
Average annual home insurance premium: $4,028

Much of Nebraska faces an extremely high hail risk, and particularly damaging storm seasons in 2023 and 2024 led to premium spikes in the last year. Nebraska home insurance costs rose 25% in 2025, according to Insurify’s home insurance report. The state saw 676 severe hail events in 2023 and 448 in 2024, according to NOAA. The collective property damage cost from all hailstorms over just two years was $128 million.

Home insurers suffered high losses from those storms and paid out $1.36 for every $1 they made in premiums, according to the National Association of Insurance Commissioners.[12] Homeowners feel the effects of those losses in higher premiums and more costly wind and hail deductibles.

10. Kansas

Wind/hail deductible (percent of dwelling): 1.4%
Average wind/hail deductible amount: $4,179
Average annual home insurance premium: $3,311

Over the last three years, Kansas consistently saw among the highest shares of U.S. hail events, according to NOAA data. Most of it was damaging, too: 83.2% of Kansas hailstorms were severe in 2023 and 2024. Kansas also saw a double-digit increase in home insurance costs in 2025, about 15%, according to Insurify data.

In 2024, home insurers paid out more than $612 million on 56,778 storm claims, according to the Kansas Department of Insurance.[13] Nearly a million homes have a moderate or greater risk of hail damage, totaling $376 billion in reconstruction cost value, according to Cotality.[4]

Five other states are seeing elevated wind and hail deductibles

Though they didn’t make the top 10 list, Nevada, Colorado, Tennessee, Alabama, and Missouri ranked among states with wind and hail deductibles higher than 1.25% of the average dwelling coverage amount, according to Insurify data.

In February, the Colorado Department of Regulatory Agencies published data showing that hail is the largest driver of home insurance cost increases in many counties, accounting for an average of 26%–54% of home insurance costs.[14] State leadership has committed to finding ways to save Colorado homeowners money on insurance.

Missouri has already seen a lot of hail in 2026, with 256 severe hail events reported so far this year, according to preliminary NOAA data. That’s second only to Texas, which has 319 but is also a much larger state than Missouri.

65% of homeowners report that severe weather damaged their roofs

Many homeowners in storm-prone areas reported roof damage, and 43% of them said hail was the cause, according to Insurify’s survey.

In 2025, hail 2 inches or larger affected more than 600,000 single-family homes in the contiguous U.S., according to Cotality.[4] Large hailstones can significantly damage roofs, often leading to additional interior damage and major repair costs. Especially combined with strong winds, large hail can dent roofs, strip shingles, and rip off siding.

Higher premiums and deductibles in storm-prone areas reflect the expensive claims that often result from hail damage. Among the surveyed homeowners who reported roof damage from severe weather, 31% said the damage cost between $5,001 and $15,000. And 10% of those who reported roof damage said they didn’t file a claim because their deductible was too high.

Changes to federal mortgage requirements could reduce homeowners’ premiums but increase financial risk

In March, the Federal Housing Finance Agency announced changes to home insurance requirements designed to reduce costs for certain federal mortgage borrowers.[15] The change affects only Fannie Mae and Freddie Mac loans, which back roughly 30 million mortgages nationwide. A key part of the change is reducing roof coverage requirements from replacement cost value (RCV) to actual cash value (ACV).

Good to Know

Replacement cost value (RCV) coverage is the cost to repair or replace the insured property with new materials of similar kind and quality, without factoring in depreciation. Actual cash value (ACV) coverage pays out the depreciated value of the insured property, reflecting its age and wear.

While this reduces homeowners’ insurance costs, it increases their financial risk if they have to file a claim for roof damage. Americans have mixed reactions about the change, with 26% saying they’d need more information to understand how it could affect them, according to Insurify’s survey. More than a quarter (28%) would support the change if it saved them money, but a third (33%) believe replacement cost coverage is a safer option.

Though replacement cost coverage is more expensive, it offers significantly more protection. It costs around $30,000 to $50,000 to replace a roof, depending on the material, according to the Journal of Light Construction.[16]

Here’s what the change could look like in action: A homeowner has a 10-year-old asphalt shingle roof that has a lifespan of 20 years, and a hailstorm causes sufficient damage to require a roof replacement.

With RCV coverage, the homeowner would receive the full cost of replacing their asphalt shingle roof with today’s materials, minus their deductible. If it costs $30,000 to replace their roof and they have a $5,000 deductible, they’d receive $25,000.
With ACV coverage, the homeowner would receive the depreciated cost of replacing their roof. So, if the roof is 10 years old and has a 20-year lifespan, an insurer may consider it 50% depreciated. If it costs $30,000 to replace, the depreciated cost would be $15,000. Minus their $5,000 deductible, the homeowner would receive just $10,000.

That means that without replacement cost coverage, the homeowner would be on the hook for $20,000 of the $30,000 it would cost to replace their roof.

Homeowners are aware of the financial risks of not having enough coverage: 72% said they’d experience financial or housing insecurity if their roof needed to be replaced and insurance didn’t cover the whole cost.

But in some at-risk areas, premiums have become so burdensome that homeowners are considering reducing their coverage. Among those who reported roof damage from severe weather, 25% would be willing to reduce their coverage if it saved them money on their insurance premiums.

Tips: How homeowners in hail-prone areas can reduce costs

While homeowners have several ways to reduce home insurance costs, it’s important to approach it thoughtfully to avoid taking on unaffordable financial risk. For example, increasing their deductible can lower homeowners’ premiums, but it means paying more out of pocket in the event of a claim.

While it does require some investment, home-hardening measures that protect against damage can help homeowners save on insurance without making the trade-off of a higher deductible.

“Hailstorms’ frequency is part of their threat: It’s not just that they can do significant structural damage, but it’s also that another storm may be along soon,” said Mallory Mooney, Insurify director of sales and service. “That’s why home mitigation measures are such a smart investment — you’re not just protecting against one event, you’re reducing your exposure over time.”

Installing impact-resistant roofing and siding, storm-rated windows, and protective shutters and updating vents and other fixtures can significantly reduce the likelihood and severity of storm damage. Basic maintenance, such as clearing gutters to ensure proper drainage, trimming dead branches, securing outdoor furniture, and covering outdoor equipment, can also reduce damage and related costs.

“Many insurers offer meaningful discounts for using impact-resistant materials, and some states actually require those discounts by law,” Mooney said. “Beyond your roof, ask your insurer specifically what mitigation measures they reward, things like reinforced garage doors, storm shutters, or even updated gutters and drainage. Then compare quotes. Insurance companies all use different rating factors, and the only way to know where you’ll get credit for the work you’ve done is to shop around.”

Methodology

Insurify’s data science team leveraged its real-time database of home insurance quotes from partner carriers to gather the average wind and hail deductibles in each state and the average dwelling coverage limit needed to cover a home in every state. Insurify calculated the percentage of the wind and hail deductible based on the average wind and hail deductible amount and the average dwelling coverage limit in each state.

Insurify determined the average cost of home insurance based on its proprietary database and aggregated rate filings from Quadrant Information Services. Unless otherwise noted, average insurance rates in each state reflect the median cost of an HO-3 policy with that state’s average dwelling coverage limit, a liability limit equal to 75% of that dwelling limit, standard personal property and loss of use limits, a 5% wind/hurricane deductible, a 2% hail deductible, and a $1,000 deductible for all other claims. Costs assume homeowners with good credit and zero claims within the past five years, living in a single-family frame house.

This article also includes proprietary data from an online survey that Insurify commissioned. The survey respondents comprised 1,000 U.S. residents aged 23 and older who live in counties that have one or both of the following qualities:

A moderate-to-high risk index for tornado or hail damage, according to FEMA.
Has experienced an EF2 or higher tornado event or a hailstorm with hail 1.5 inches or larger between Jan. 1, 2024, and Dec. 31, 2025, according to NOAA.

Respondents answered up to 15 questions about their views on climate risk and homeownership. The survey fieldwork took place from March 26 to March 27, 2026.

Insurify analyzed hail data from NOAA’s Severe Weather Database files to get a detailed view of hail severity and density by state.