Hail causes about $1 billion dollars in damage to crops and property each year, according to the National Oceanic Atmospheric Administration (NOAA). Events involving wind, hail or flood accounted for $21.4 billion in insured catastrophe losses in 2014 dollars from 1994 to 2014 (not including payouts from the National Flood Insurance Program), according to Property Claim Services.
There were 5,411 major hail storms in 2015, according to statistics culled from NOAA’s Severe Storms database, with the largest number of severe hail storms occurring in June (1,324 storms), April (1,193 storms) and May (881 storms). Texas had the largest number of severe hail events in 2015, followed by Kansas, Nebraska, Oklahoma and South Dakota.
The National Weather Service posts detailed information on severe storm events, including hail, tornadoes and wind. 2015 data on the number of hail events are posted online. Historical and current data, including damages, are posted here. NOAA has a “search by state” database.
Damage caused by wind and hail cost State Farm and its policyholders more than $2.4 billion in 2014, according to an April 2015 analysis by the insurer. Texas was the state with the most wind/hail losses, followed by Illinois, Colorado, Missouri, Nebraska, South Carolina, Pennsylvania, Iowa, South Dakota and Kansas.
Top Five States By Number Of Major Hail Events, 2015 (1)
Hail Fatalities, Injuries And Damage, 2011-2015 (1)
PROPERTY HAIL CLAIMS
A report issued by Verisk Insurance Solutions in August 2014 showed that over the 14 years from 2000 to 2013 U.S. insurers paid almost 9 million claims for hail losses, totaling more than $54 billion. Most of those losses—70 percent—occurred during the past six years. In addition to the higher number of claims, the average claim severity during the past six years was 65 percent higher than from the period 2000 through 2007.
Verisk’s report ranks states from 2000 to 2013 by annual claim severity and by annual claims loss per year. When ranked by claim severity, not one of the states in “hail alley”—Nebraska, Colorado and Wyoming—is represented. The second ranking, by average claims loss per year, is a better representation of states that are more likely to have large hail losses and includes Oklahoma, Illinois and Kansas, which are typically known as hail states. Only two states, Minnesota and Ohio, are represented in both the chart for average claim severity and for average claims loss per year.
A 2016 Highway Loss Data Institute (HLDI) study quantified hail-related claims under automobile insurance comprehensive coverage, based on an analysis of National Oceanic and Atmospheric Administration and HLDI data for 2008 to 2014. Hail claims from 31 companies were studied, and results were based on more than 1.5 million claims. The insurers in this sample paid $5.37 billion in total hail claims from 2008 to 2014. The actual payout by all insurers was estimated by HLDI to be $7.26 billion. HLDI’s results found a frequency of 3.2 claims per 1,000 insured vehicle years during the study period and a claim severity of $3,428. 2011 had the highest claim frequency, 4.3, while 2014 had the highest claim severity, $4,169. The states with the highest claim frequencies over the years 2008 to 2014 were South Dakota and Nebraska.