Severe Storms Pose Greater Financial Risk to US Homeowners Than Hurricanes

Severe convective storms now pose a larger financial risk to homeowners than hurricanes, according to new research from First Street.

This shift in risk profile suggests that homeowners may be underestimating the potential for property damage from localized weather events. While hurricanes often dominate national headlines, the cumulative impact of smaller-scale but frequent severe storms creates a more persistent economic threat to residential assets.

Jeremy Porter, chief economist at First Street, said the findings on CBS News. The research highlights that severe convective storms, which include tornadoes, hail, and wind, are responsible for a substantial share of financial damage worldwide.

According to the data, these severe convective storms account for roughly one-third of global natural-disaster economic losses ^[1]. This high percentage indicates that homeowner exposure to these events is higher than previously recognized when compared to the impact of hurricanes.

The findings suggest that the financial burden of these storms is distributed differently than hurricane damage. While hurricanes often cause catastrophic damage in specific coastal regions, convective storms can strike a wider variety of geographic areas with high frequency.

Porter said the research underscores the need for a revised understanding of weather-related financial vulnerability. The data points to a systemic underestimation of the costs associated with tornadoes and hail—events that can occur rapidly and without the long lead times associated with tropical cyclones.