Around the Industry: Large-scale Climate Disasters Breaking Down Insurance Records (November 2025)
Reading time • 1 min
By Matic
Several new studies are revealing recent trends in the home insurance space, from new claims records to increased approval times from state insurance regulators. On a positive note, however, younger homeowners are showing a greater awareness of home insurance coverage and continue to manage and update their policies after buying compared to older homeowners.
2024 breaks multiple home insurance claims records
A new report from Lexis Nexis reveals that 27 climate disasters resulted in at least $1 billion in damages last year. On top of that, peril severity jumped 9% from 2023, and loss costs were nearly 50% higher than they were in 2019. Overall, wind and hail dominate as the two most common claim types nationwide.
State regulators take increasingly longer periods to review home insurance rate changes
State regulators are in charge of approving rate increase requests from insurers. But between 2010 and 2024, approval times have jumped 40%, with California averaging the longest at 321 days. These slowdowns can contribute to underwriting losses from insurers, especially when compounded by increasing claims and inflation costs.
Find out more from the Insurance Research Council.
Gen Z and Millennial homeowners are more likely to update their home insurance policies
A recent Nationwide report reveals that Gen Z and Millennials more frequently review and update their home insurance policies compared to homeowners as a whole. 47% of this demographic increased their coverage limits over the last year to account for rising replacement costs, compared to just 31% of overall homeowners. And over half purchased additional coverage such as flood, earthquake, or sewer backup policies, compared to 29% of all homeowners.
California faces real estate challenges, Florida’s primary insurance coverage is shifting, and Illinois rejects regulatory reform
- Insurance-related closing issues jump in California: The number of failed real estate transactions due to insurance doubled between 2023 and 2024. For 13% of real estate agents in the state, at least one sale fell through because a homebuyer couldn’t get a home insurance policy.
- Florida’s state insurer of last resort now accounts for 63% of policies: Previously, Florida’s Citizens Property Insurance Company accounted for just 6% of home insurance coverage.
- Illinois legislature rejects Governor Pritzker’s call for regulation: After State Farm requested a 27.2% home insurance rate hike in July, governor JB Pritzker asked the Illinois legislature to increase the state’s regulatory authority. But the proposed bill recently failed, with opponents citing uncertainty for homeowners and an even greater potential for future price increases.
