Denver roofing business owner Said Ahmad has seen a significant increase in hail-related damages over his 18 years in the industry. The US is experiencing a crisis as extreme weather events increase in severity and frequency, with hail becoming a major concern for insurers.
Since 2013, the US has recorded 178 billion-dollar disasters, five times the amount recorded in the 1980s. Experts say hail is quietly becoming the biggest climate concern within the insurance industry, fueling a rise in premiums and scaled-back coverage.
Insurance companies struggle to understand hail due to its unpredictability, making it difficult for them to assess risk and set prices accordingly. The uncertainty, combined with escalating payouts for previous hail storms, has led some companies to raise homeowners’ premiums.
As premiums rise, coverage is shrinking, putting pressure on many homeowners. Insurers are now more likely to only cover the cash value of a roof or limit their coverage based on its age.
Climate change exacerbates the problem by creating bigger hailstones. Experts predict a 15% to 75% increase in large hailstones in the coming years.
To address this issue, environmental professor Victor Gensini plans to unveil a center dedicated to studying hail by August. The center will bring together researchers from various fields to model worst-case scenarios for hail and help insurers correctly price premiums. Twelve insurance and reinsurance companies have signed up to support the center with funding.
Source: https://www.businessinsider.com/hail-stone-storm-damage-threat-to-american-homes-insurance-premiums-2025-2