The second quarter of 2025 continued the three-year downward trend in total property insurance claims, falling 9.6% compared to the same period last year, however, claims were up 26% from Q1 2025, according to Verisk’s Quarterly Property Report.
Verisk attributed the decline in claim volume to non-CAT claims, which dropped 16.8%. CAT claims, by contrast, remained steady, rising only 0.76% from 2024.
Texas once again led the US in claim volume, with 183% more claims than Missouri, the second-highest state. Wind/hail claims accounted for 79% of Texas’ volume, 75% of which were designated CAT events.
In Missouri, wind/hail claims made up 86% of Q2 volume, with 80% classified as CAT claims. Illinois, Georgia, and Ohio rounded out the top five states by total claim volume.
Indiana, West Virginia, and Kentucky each recorded CAT claim increases of more than 50% due to storm activity, while Colorado, South Dakota, Maine, and Nebraska saw drops exceeding 50%.
The report revealed that wind and hail claims surged, representing 63% of all Q2 claims—up from 47% in Q1. However, a special analysis found that 27% of hail claims had no weather evidence on the reported date of loss, raising concerns about claim timing, fraud risk, and CAT classification.
Claim severity is currently down 9% compared to Q2 2024, though this figure is expected to rise as larger, more complex claims from the prior quarter are completed and reported to Verisk’s XactAnalysis.
Labour and material costs rose 1.06% in the U.S. this quarter, slightly higher than the 1.00% increase in Q1. Tile/cultured marble and siding installers saw the largest labour cost increases, while roofer costs declined for the first time since 2014.
Builder confidence fell to 32 on the NAHB/Wells Fargo Housing Market Index—an unusually low level for summer—signalling growing caution among contractors amid fluctuating demand and persistent labour shortages.
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