The 2018 LexisNexis® Home Trends Report reveals the impact of 2017 extreme weather events in the US on catastrophic losses and weather-related perils. According to findings, 2017’s extreme weather, including Hurricanes Harvey and Irma, increased the severity and proportion of catastrophic claims for the year (35% of claims in 2017 vs. 30% in 2016), with 60 % of wind claims and water claims qualifying as a catastrophe, especially in Texas and Florida.
Key weather related findings include:
- Wind – 2017 was the worst year for wind damage claims since 2012, with Florida and Texas seeing a significant spike in losses due to Hurricanes Harvey and Irma.
- Hail – Hail claim frequency decreased to baseline levels from 2012 after an intense year for hail claims in 2016. However, while frequency decreased, hail claim severity increased from 2016 to 2017, resulting in an increase in hail loss cost.
- Water (Weather-Related) – The 2017 hurricane season was not only severe, but active, causing the U.S. to face a 6% jump in total losses from water. There was a 4 percentage point jump in catastrophe Water–Weather claims as compared with 2016.
- Fire (Fire and Lightning) – Losses from fires increased nearly 22% over 2016. While loss frequency has remained relatively stable in recent years, loss severity has increased nationwide. Interestingly, California wildfires in October 2017 caused a severity peak on the Fire seasonality chart.
By using aggregated by-peril data found in the Home Trends Report, home insurance carriers can achieve a deeper understanding of the risk associated with a particular location. Click here to download the interactive 2018 Home Trends Report.