Property insurance claims are decreasing by volume but heading in the opposite direction in severity and cost, a trend that servicers will need to monitor as they work with homeowners following extreme weather events.
The number of U.S. claim assignments dropped to 1.24 million in the second quarter, falling 12.2% on a year-over-year basis and 13% under the average over the same three-month period since 2021.
Second-quarter trends were marked by an 18.7% drop in non-catastrophic claims, driving down overall activity. Claims resulting from catastrophes pulled back by only 4.3%, according to Verisk's latest quarterly property report.
Catastrophic claims made up 43% of total second-quarter activity, though, rising from 34% five years ago. The upturn occurred even as the number of events largely held steady, indicating losses are becoming increasingly concentrated around
"Routine, everyday claim activity is thinning out, while catastrophe-driven activity is holding," the report said.
For servicers, insurers and
"While other quarters fluctuate year to year, Q2 shows a clear, sustained climb. As weather patterns grow less predictable from one year to the next, close monitoring of event activity becomes increasingly valuable," Verisk continued.
How costly recent claims were
Preliminary second-quarter data showed the average claim over the period came in at $17,085, a 10.8% decline from 12 months earlier and 2.9% below the running five-year average. Because large, complex claims require longer processing times, the number is expected to rise to $18,794 based on historical patterns and perhaps jump to a recent high if growth from the previous quarter's claims serves as an indicator.
The January-to-March estimate initially came in at $16,079 but has since exceeded its earlier anticipated increase to sit at its current level of $18,185. Applying the same growth trajectory, the current amount of total second-quarter claims would hit $19,323.
Where property claims were most common
While designated catastrophic events occurred across the country, a significant number of claims attached to them came from the Central U.S. states of Kansas and Missouri, both of which were struck by a series of April tornadoes, severe rain and hailstorms. More than 70% of claims from the two states were labeled as catastrophic.
Meanwhile, Hawaii continued to accrue claims after a low-pressure weather system brought with it heavy rain, thunderstorms and flooding in the previous quarter.
"This quarter stands out for how long a single event can keep generating claim activity," Verisk said.
Across both catastrophic and non-catastrophic insurance claims, Texas led the U.S. with 154,873. That number represented a 27.3% pullback from second-quarter 2025 when the Lone Star State saw an elevated number of filings in the
Instead, the Midwest emerged as a claims hotspot, led by surges in Illinois and Ohio, which finished in the second and third spots based on total assignment volume. Residents of both states continue to deal with the impact of severe convective storms and hail activity.
At the same time, Kansas and Iowa experienced jumps in claim volume by 73% and 95%, with hailstorms also responsible for a fair percentage of the total.
Overall, hail drove 28.3% of all second-quarter property claim assignments, more than any other category. Water damage accounted for 23.3% and wind 21.3%. The combination of hail and wind was cited in 8.9% of claims.
Servicers and insurers are likely to see elevated claim activity from the region continue well into the third quarter following
