Severe Storm Losses Force Homeowners Insurance Underwriting Shifts

Homeowners and personal property insurers have changed underwriting strategy, deductibles, and geographic appetite. This shift follows three consecutive years of insured losses from severe convective storms exceeding $50 billion, including $51 billion in 2025. Allstate reported pre-tax catastrophe losses of $1.24 billion for the first quarter of 2026. Losses for March 2026 alone reached $925 million pre-tax. Three of the 15 wind and hail events in March accounted for 80% of the month's total losses.