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US home insurance claims severity hits record high in 2025
LexisNexis Risk Solutions said total US climate disasters in 2025 reached 23, with estimated damage of about $115 billion, including $61.2 billion from the Los Angeles wildfires.
LexisNexis Risk Solutions has published its 2026 US Home Trends Report, analyzing home insurance claims data across property perils and state-by-state trends to support insurer underwriting and risk assessment.
The company said overall claims severity reached its highest recorded level in 2025, rising 25.9% year over year and 93.2% since 2019. Even as combined loss costs fell 4.4% between 2024 and 2025 and claims frequency declined 23.8%, loss costs remained the third highest over the past seven years and were still 50% above 2019 levels.
The report linked the worsening severity trend to major weather events, noting 23 climate disasters in the United States in 2025 that caused at least $1 billion in damage. Total damages were estimated at $115 billion, with the Los Angeles wildfires accounting for about $61.2 billion.
Fire and Lightning were identified as the most costly property perils during 2025, with loss costs increasing 76.8% year over year and severity rising 67.3%. George Hosfield, vice president and general manager for home insurance at LexisNexis Risk Solutions, said insurers face rising pressure as severity climbs, replacement costs rise due to inflation, and loss patterns shift alongside climate driven catastrophes.