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The frequency and cost of natural disasters are increasing, a trend confirmed by federal data. As the nation progresses through 2025, a clear and costly picture of weather and climate disasters is already taking shape.
The National Perspective in 2025. While 2024 was a historic year for costly disasters, 2025 has already seen significant and deadly events. A notable change this year is that NOAA’s National Centers for Environmental Information (NCEI) ceased updating its widely-cited “Billion-Dollar Weather and Climate Disasters” database in May 2025. However, the trend of costly and frequent disasters has demonstrably continued.
The archived data from 1980 through 2024 tells a story of rapid escalation. Over those 45 years, the U.S. experienced 403 billion-dollar disasters.
The average number of these events grew from about three per year in the 1980s to 19 per year in the last decade (2015-2024).
Disaster Breakdown: 2025 Events
Wildfires According to the National Interagency Fire Center (NIFC), as of mid-August 2025, there have been 43,832 wildfires reported nationally, burning a total of 3.8 million acres. This indicates a more destructive fire season in terms of acreage compared to the previous year. Currently, 49 large fires are actively burning across nine states, engaging nearly 20,000 personnel.
Hurricanes The 2025 Atlantic hurricane season is predicted to be above-normal. In an update issued in early August, NOAA forecast a range of 13 to 18 named storms, with 5 to 9 of those expected to become hurricanes, and 2 to 5 potentially strengthening into major hurricanes. This continues the recent trend of more active and intense storm seasons.
A notable event so far in 2025 was Tropical Storm Chantal, which made landfall in the Carolinas over the Independence Day holiday weekend, bringing high winds and deadly flooding to the region.
Tornadoes Tornado activity in 2025 has been significantly above average. As of the end of June, NOAA recorded a preliminary count of 1,394 tornadoes, which, if confirmed, would be the fourth-highest count on record for the first half of the year. These severe weather events have tragically resulted in at least 35 fatalities so far in 2025. States across the central and southern U.S. have experienced severe outbreaks, including powerful EF3 and EF4 tornadoes.
Flooding and Severe Storms Catastrophic flooding has been a major story in 2025. In early July, devastating flash floods in the Texas Hill Country resulted in at least 135 fatalities, making it one of the deadliest inland flooding events in the U.S. in decades. The event was fueled by extreme rainfall that saw the Guadalupe River rise about 26 feet in just 45 minutes. This single event’s death toll has already approached the total number of widespread flood-related fatalities for all of 2024.
This underscores a critical issue: the insurance gap. Flood damage is not covered by standard homeowner’s policies and requires separate coverage, which only a small percentage of homeowners carry.
The Widening Insurance Gap
The escalating risk from natural disasters is putting immense strain on the insurance market, leaving many Americans dangerously exposed.
Key Insurance Challenges:
Flood Insurance Exclusion: Standard homeowner’s policies do not cover flood damage. This crucial protection must be bought separately, often through FEMA’s National Flood Insurance Program (NFIP), yet very few homeowners have it.
Insurers in Retreat: Faced with mounting losses, major insurance companies are limiting their exposure in high-risk states like California, Florida, and Louisiana. This includes pausing new policies or not renewing existing ones in areas prone to wildfires and hurricanes.
Soaring Premiums: For those who can obtain coverage, premiums are rising sharply. In the highest-risk regions, homeowners have seen double-digit percentage increases year-over-year, making insurance unaffordable for many.
The Risk of Underinsurance: Even with a policy, homeowners may be underinsured. Rapidly rising construction costs mean that coverage limits that were adequate a few years ago may no longer be sufficient to fully rebuild after a total loss.
Outlook and Recommendations
The data confirms that the financial and human risks from natural disasters are escalating. As the insurance market adapts to this reality, homeowners face significant challenges.
To protect yourself, it is critical to:
Review your policy annually to ensure your coverage is in line with current rebuilding costs.
Understand your specific risks and purchase separate policies for perils like flooding if you are exposed.
Document your property with a detailed inventory, including photos and videos, to simplify any potential future claims process.