As the 2019 LexisNexis® Home Trends Report shows, fire continues to impact catastrophic losses and weather-related perils. As reported in the 2018 annual report, while 2017 was considered one of California’s worst years for wildfires, 2018 was even more deadly and destructive. Carriers may also be seeing more cross-peril interactions, such as mudslides when rainfall follows wildfires.
Key weather related findings include:
- Fire – California accounted for more than 95% of catastrophe fire losses in 2018. Wildfires contributed to the highest claim severity numbers in a decade. Overall catastrophe fire losses were four times higher in 2018 than 2017.
- Wind – Losses in the wind peril were lower than 2017, but still much higher than levels experienced during the four years prior. Claim severity, however, was 15% higher than 2017.
- Hail – Hail loss cost decreased in 2018 by 33% from 2017 numbers. Catastrophe claims remained steady year over year.
- Water (Weather-Related) – January and February are proving to be the worst months for this peril. Freeze claims severity in January 2018 were 45% higher than the six-year average covered in this report.
With losses continuing to be felt from weather-related events, it’s important for carriers to have insight into the by-peril history of specific seasons and geographic areas so you can better manage risk. Download the 2019 Home Trends Report now to learn more.