Winter Storm Fern, which affected 30 states across the Midwest, Northeast, South, Tennessee Valley and Mid-Atlantic from January 23 to 26, is estimated to have caused insured losses of $4.6 billion to $6.7 billion, according to catastrophe modeling firms Karen Clark & Co. (KCC) and Verisk. The storm affected more than 200 million people, with nearly one million without power. There was significant property damage from downed trees and power lines. Prolonged freezing temperatures also likely triggered secondary losses, including frozen pipes and additional living expenses.
And Fern was not an isolated event.
Extreme weather, including severe convective storms (tornadoes, large hail and straight-line winds), is becoming more prevalent nationwide and driving significant losses for insurers. According to Moody’s, insured losses from severe convective storms for the first nine months of 2025 reached $42 billion. Swiss Re estimates that total catastrophe losses in 2025 surpassed $100 billion, driven by storms and wildfires in Los Angeles. Hurricane Melissa alone generated an estimated $2.5 billion of insured losses.
These billion-dollar events, even when they occur hundreds of miles away, ultimately affect homeowners nationwide.
Losses in one region must be absorbed across insurers’ broader books of business. When catastrophic events become more frequent and severe, their impact is not isolated; it ripples through underwriting models, rate filings and policy terms and reshapes the property market.
Premium Pressure and Stricter Underwriting
Convective storm losses, from hail to wind events, are driving billions of dollars in claims in areas previously considered stable. As catastrophe losses mount, insurers are adjusting their programs and seeking rate adequacy to cover claims. They are also refining their appetite based on exposure concentration and geographic risk modeling. In some regions, carriers are exiting certain segments entirely.
In addition, insurers are re-evaluating roof age, prior claims history, construction materials and property maintenance more aggressively than in prior years.
As a result, homeowners are experiencing premium increases, even in areas not traditionally considered high-risk. They are seeing higher wind, hail or named-storm deductibles, reduced coverage options and increased scrutiny for underwriting at renewal.
Building for Resiliency
In response to escalating catastrophe losses, many states and municipalities have strengthened building codes to improve resilience against wind, wildfire, flood and freeze events. Updated standards increasingly require enhanced roof attachment systems, impact-resistant materials, improved drainage and elevation requirements in flood-prone areas, ember-resistant construction in wildfire zones and better insulation and pipe protection in cold-weather regions. These changes are designed to reduce structural damage and the severity of long-term loss.
For homeowners, properties built or retrofitted to newer codes are often viewed more favorably by insurers, which can positively influence underwriting decisions and, in some cases, eligibility or pricing.
What You Can Do to Mitigate Losses, Improve Your Risk Profile
Many insurers now provide loss-control resources and seasonal advisories to help homeowners prepare for extreme weather events. These can include pre-storm bulletins, checklists and bespoke guidance based on your location and property characteristics.
Taking steps to reduce your home’s vulnerability not only helps protect your property — it can also improve your risk profile. The following are several risk-mitigation measures.
Flood Preparedness
- Ensure that gutters and downspouts are clean and that water is directed well away from the foundation.
- Elevate your furnace, water heater and electric panel if they are in areas susceptible to flooding.
- Bring outdoor furniture inside.
- Install or improve drainage swales or French drains to move water away from low spots.
- Anchor fuel tanks and other outdoor equipment that could float or shift during flooding.
- For properties in higher-risk zones, consider flood vents in foundation walls to minimize structural damage by allowing water to flow through rather than against the foundation.
Winter Weather and Frozen Pipe Protection
Preparing your home for freezing temperatures reduces the likelihood of extensive water damage. Key mitigation practices include:
- Maintain adequate insulation in attics, crawlspaces and basement ceilings to protect interior plumbing from extreme cold.
- Seal gaps around windows, doors and where plumbing enters the home to limit drafts.
- Allow faucets to drip slowly during prolonged freezes to keep water moving and minimize the risk of freezing.
- Locate the shut-off valves for indoor water lines and know how to turn off the main water supply quickly in the event of a leak.
Seasonal and Ongoing Loss-Control Habits
There are also practices to undertake throughout the year to mitigate the likelihood or severity of loss.
- Maintain landscaping and trim trees and limbs that could fall on structures during storms.
- Regularly inspect and maintain roofing, siding and external drainage systems.
- Keep key service providers, including plumbers, HVAC technicians and gutter cleaners, on a regular maintenance schedule, especially before winter and storm seasons.
- Subscribe to local weather alerts and emergency notifications so you get timely information when severe weather is projected.
By understanding and addressing the specific exposures your home faces, whether from flood, cold, wind or another weather-related exposure, you not only protect your property and family but also position yourself more favorably with insurers.
Contact HWP
HWP, a leading insurance agency, provides individuals and businesses throughout Washington, D.C., Annapolis and Southern Maryland with customized insurance solutions. We would be happy to review your personal insurance. Learn more at hwphillips.com.
Risk-Mitigation Sources: Chubb and PURE
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