Severe weather losses force a shift in US homeowners insurance underwriting

Homeowners and personal property insurers have changed underwriting strategy, deductibles, and geographic appetite. This shift is driven by severe convective storms, which have generated $51 billion in insured losses in 2025. These losses have exceeded $50 billion for three consecutive years.

Allstate reported March catastrophe losses of $925 million pre-tax, driven largely by wind and hail activity. Total catastrophe losses for the first quarter reached $1.24 billion pre-tax. Fifteen catastrophe events generated these losses, with 80% of the total tied to three major weather events.