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All Peril home insurance severity hits record high in 2025
LexisNexis Risk Solutions data showed 2025 All Peril loss cost fell 4.4% and claims frequency dropped 23.8%, but severity still rose 25.9% year over year to an all-time high.
Insurance Journal reports that LexisNexis Risk Solutions’ 2026 U.S. Home Trends Report found All Peril home insurance severity reached an all-time high in 2025, rising 25.9% from 2024.
The report also showed All Peril loss cost declined 4.4% and claims frequency decreased 23.8% over the same period, while severity still hit its highest level in seven years, up 93.2% from 2019.
According to the report, insurers are being pushed by rising inflation-driven replacement costs and changing loss patterns tied to climate-driven catastrophes. Fire and lightning were identified as the defining perils of 2025, with loss cost up 76.8%, frequency up 6.0%, and severity up 67.3% from 2024.
The increase was linked largely to the January 2025 Los Angeles wildfires. The report noted catastrophe claims fell to 51% in 2025, and it said there were no hurricanes impacting the continental U.S. during the 2025 Atlantic hurricane season, though a mid-March central tornado outbreak was the second costliest of the billion-dollar events.