Claims Down, Costs Up
Property claims down but soaring claims valuations complicate the picture
Property insurance claims hit a five-year low in the first quarter of 2025, according to Verisk’s "Quarterly Property Report," with total claims volume dropping 7% year over year—even amid major events like the Palisades and Eaton wildfires in California in January. The decline continues a trend that began in 2023.
However, soaring claim values and rising reconstruction costs are complicating the picture.
Replacement cost value (RCV) surged 46% nationally compared to the first quarter of 2024. The surge was driven by the California wildfires, which led to $10 billion in losses and an average claim of $337,000. Fire-related losses jumped 40%. Nationally, wind and hail still accounted for nearly half (47%) of all claims, though this was down 7% from 2024.
Regional trends underscore shifting weather risks: Texas led in total claims, with wind and hail making up 95% of its catastrophe volume. Meanwhile, Kentucky and Nebraska saw a 200% spike in wind and hail claims. Reconstruction costs rose 5.2% nationwide, with labor—particularly for concrete masons—driving most of the increases.
