Sobering statistics show the U.S. has experienced 396 billion-dollar weather and climate disasters since 1980. Overall insured and uninsured losses from these events exceed $2.780 trillion.
So far this year, the U.S. has sustained 20 weather events with losses of $1 billion or more. Hurricane season isn’t over yet, and these numbers reflect data from the National Centers for Environmental Information (NCEI) last updated on Sept. 10.
This year’s official billion-dollar events — 16 severe storms or tornado outbreaks, two winter storms, one tropical cyclone, and one wildfire — have resulted in 149 deaths. Most of these weather events have occurred in the Southern and Midwestern regions of the country.
The NCEI has cited two more potential billion-dollar events: Midwest flooding in late June and Hurricane Debby, which made landfall in Florida in early August. But NCEI hasn’t finalized the total costs associated with damage from these two weather events.
Hurricanes Helene and Milton will likely also join the NCEI’s list of catastrophic billion-dollar weather events as well. Hurricane Helene caused between $30.5 and $47.5 billion in damages, including uninsured flood loss between $20 and $30 billion, according to estimates from data analytics firm CoreLogic. The damage for Hurricane Milton is similar, with Fitch Ratings estimating between $30 and $50 billion in damages.
Compared to previous years
The cycle of severe weather events is increasing in frequency.
Between 1980 and 2023, the U.S. experienced an average of 8.5 billion-dollar weather events annually. But that annual average has increased significantly in the last five years, with an average of 20.4 events annually between 2019 and 2023. The average has climbed again in the last three years, at 22 events per year between 2021 and 2023.
In the last five years, the U.S. has had 102 billion-dollar events, which resulted in $617.5 billion in damage and 1,996 deaths.
In 2023, the NCEI recorded 28 billion-dollar climate events, which resulted in $95.1 billion in damages and nearly 500 deaths. So far in 2024, the U.S. has experienced $53 billion in damages as a result of the 20 billion-dollar weather events recorded, according to NCEI data updated on Sept. 10.
What’s next? The continual effect on insurance costs and availability
These severe weather events have left a lasting impact on homeowners who face increased insurance costs as insurers cease operations in high-risk areas, making it harder to obtain affordable coverage.
The average annual cost of homeowners insurance increased by 19.8%, from $1,984 to $2,377, between 2021 and 2023, according to the Insurify homeowners insurance report, as insurers seek to recoup losses following severe weather events.
In California, for example, State Farm announced in March that it wouldn’t renew more than 70,000 property insurance policies, including 30,000 homeowners insurance policies. Allstate, Farmers, The Hartford, and USAA have also made efforts to pull back in the state.
In July, the U.S. Department of Housing and Urban Development (HUD) held a summit to address increasing property insurance costs and limited available coverage for the average American. Though HUD has somewhat limited reach to address premium increases and coverage availability, the department has been looking for ways to address the industry’s challenges.
HUD recently changed the requirements for wind and named storm coverage for multi-family homes with FHA mortgages, which will decrease owners’ costs while ensuring coverage. HUD has also given more than $610 million to HUD-assisted owners of multi-family properties to promote upgrades geared toward energy efficiency and climate resilience.
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