Homeowners across Tornado Alley are facing a steep rise in insurance premiums, but it’s not just tornadoes driving up the cost. According to industry experts and analysts cited by NPR, hailstorms have become a leading concern for insurers in the central U.S.
Premium Hikes Across Tornado-Prone States
The Consumer Federation of America reports sharp premium increases in several states where extreme weather is common. In Kentucky, which recently saw a deadly tornado that killed at least 19 people, rates are up 35% compared to a few years ago. Similar increases are seen in:
- Nebraska (35%)
- Arkansas (34%)
- Minnesota (32%)
- Texas, Colorado, and Iowa (27% each)
Hail, Not Tornadoes, Driving Claims
Although tornadoes pose a serious threat to life, Scott St. George, head of weather and climate research at insurance broker WTW, explains that hail is responsible for the majority of insured damages from severe weather. Tornadoes affect smaller areas, but hailstorms often hit much larger regions, causing widespread damage.
Hail can shatter windows, rip away siding, and puncture roofs. St. George notes that hail accounts for between 50% and 80% of homeowner claims annually from severe convective storms, which include both hail and tornadoes.
Ben Keys, a professor at The Wharton School, supports this view, stating that the increased frequency and severity of hailstorms are pushing insurers to raise premiums.
National Trends in Insurance Pricing
The hike in insurance costs is not limited to Tornado Alley. Nationally, homeowner premiums have climbed an average of 24% in recent years. Contributing factors include:
- Increased cost of extreme weather disasters
- Higher property exposure due to migration to risky areas (e.g., coasts, wildfire-prone zones)
- Inflation is driving up rebuilding costs
Although scientists continue to research how climate change affects tornadoes and hailstorms, it is clear that severe weather is having an economic impact on property insurance.
Changing Weather Patterns and Insurer Response
There has been an above-average number of tornadoes in the Midwest this year, according to the National Weather Service. While this doesn’t establish a long-term trend, larger tornado outbreaks — such as those in Kentucky and Missouri — are becoming more common. Some evidence also suggests tornadoes could occur more often in fall and winter, potentially due to changing climate conditions.
A scientific team has reported that rising global temperatures could lead to larger hailstones due to atmospheric changes, adding further concern for insurers.
David Marlett, managing director at the Brantley Risk & Insurance Center, notes that insurers are responding similarly to how they have with hurricanes and wildfires: by reducing coverage, especially on roofs, and raising rates to match risk. For example, policies may reimburse homeowners for the value of a damaged roof rather than covering full replacement costs.
Resilience Measures and Cost Challenges
While fortified roofs can reduce hail damage, they offer limited protection against tornadoes. In some states, homeowners may qualify for small insurance discounts for installing fortified roofs. However, Jeremy Porter of First Street points out that the financial payoff is often too small to justify the investment. A $15,000 roof might yield only an $80 reduction in premiums, making it an unrealistic option for many families focused on short-term financial needs.
Marlett adds that in the case of major tornadoes, even the strongest building codes and structural upgrades may fall short. “At some point with a tornado,” he says, “you simply can’t build a structure that’s going to withstand that.”
Conclusion
As extreme weather continues to challenge insurers and homeowners alike, hail has emerged as a major driver of rising insurance costs in Tornado Alley. While resilience measures offer some relief, their limitations and costs underscore the complexity of addressing storm-related risks.
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