Inside This Article:
- Researchers are anticipating above-average Atlantic hurricane activity in 2025.
- Hurricanes have caused more than $1.5 trillion in total damages since 1980, with an average cost of $23 billion per event.
- Property owners may overlook aspects of their Homeowners Insurance and Commercial Property Insurance that determine how hurricane damage would be covered, leaving them at risk for uninsured or underinsured losses, such as flooding.
- As the hurricane season approaches, homeowners and business owners are urged to take protective measures to reduce potential losses.
Hurricane activity in the Atlantic is expected to be above average in 2025, with 19 storms, nine hurricanes, and four major hurricanes projected, according to a recent forecast by The Weather Company and Atmospheric G2. While slightly less active than 2024, the outlook still points to an elevated risk of U.S. landfalls compared to the 30-year average and aligns with earlier predictions from Colorado State University’s tropical forecasting team.
Researchers at CSU anticipate 17 named storms this year, including nine hurricanes and four major hurricanes, CNN reported. Atlantic hurricane activity was above average in 2024 with 18 named storms, 11 of which were hurricanes and five of which intensified to major hurricanes, according to the National Oceanic and Atmospheric Administration (NOAA).
“Looking at these predictions, we know it is not a matter of if it is going to happen, it is when,” said Berri Willis, Vice President, Managing Director, Burns & Wilcox, Morehead City, North Carolina. “The severity and the location of it is something we cannot predict. As a homeowner living on the coast, the first thing it makes me think about is that you need to be prepared. It is going to happen at some point.”
Starting with the 2025 Atlantic hurricane season, which runs June 1 through Nov. 30, the National Hurricane Center will update its alert system to give more advanced notice of strengthening tropical storm systems, First Coast News reported April 29. As homeowners and business owners prepare for the season ahead, fully understanding the coverage they have under Homeowners Insurance, Commercial Property Insurance and Flood Insurance is key — and time is of the essence.
“The time to prepare is now, before the hurricane,” said John Heaner, Associate Vice President, Regional Director, Commercial Insurance, Burns & Wilcox, Tampa, Florida. “Once a storm is named, insurance carriers can shut down writing new business immediately and will not open back up until after that storm has passed. Every year, we see individuals coming the week before a hurricane is about to hit and asking for wind coverage, and the answer is always no. Once wind season starts, there are no guarantees.”
The time to prepare is now, before the hurricane.
Implications for property owners, insurers
Hurricanes have caused more than $1.5 trillion in total damages between 1980 and the end of 2024, with an average cost of $23 billion per event, according to the NOAA’s Office for Coastal Management. Americans spend $20 billion each year repairing their homes after storms—a figure that is up $3 billion since 2021 and nearly double the 2000 to 2010 annual average, according to Harvard’s Joint Center for Housing Studies.
Experts say the above-average hurricane activity expected this year is due in part to unusually warm water temperatures in the Atlantic and the anticipated absence of El Niño, USA Today reported. However, the slightly tempered projections for 2025 are “in line with what some of our carrier partners are predicting,” Heaner said, and could contribute to a softening of the insurance market.
“We have been seeing some softening in the property rates compared to the last two years and I think that is really because of the predictions being less severe,” he said. “For Homeowners Insurance, more markets are starting to open back up. In the Commercial Property Insurance space, we have seen rates going down anywhere between 5% to 10% in some cases.”
That trend is likely to continue if 2025 is a “quieter” wind season, Heaner said, though “it only takes one storm to really turn the tides.”
While hurricane season outlooks can help set expectations, property owners in at-risk regions ultimately know that “the hurricane season is going to come and there is going to be some form of storm during that season at some point, whether it be small or large,” Willis said.
“No one can play God and predict what will happen, but there are factors that contribute to these forecasts. Regardless of the predictions, you always need to be prepared,” she said. “Make sure you are insured properly and mitigating your risks.”
Named storm deductibles and other insurance considerations
Millions of U.S. property owners are vulnerable to uninsured losses from hurricane damage due to inadequate insurance coverage. A 2024 report by the Consumer Federation of America found that about 7.4% of homeowners—more than 6 million households—do not have Homeowners Insurance, leaving an estimated $1.6 trillion in property value unprotected.
Even those with insurance could be underinsured, as their policies may not fully cover rebuilding costs, Heaner said. “When it comes to the valuation of the building itself, make sure you are carrying a limit that would account for the cost of reconstruction if there was a loss,” he said. “There are also businesses that do not carry coverage for things like utility service interruption or spoilage for when there is no power.”
Make sure you are carrying [an insurance] limit that would account for the cost of reconstruction if there was a loss.
Rebuilding costs are on the rise and property owners should ensure the price per square foot included on their policy “is correct for today’s economy,” Willis added. “Being cognizant of the economy and how much it costs to rebuild your home is really important.”
Commercial properties and homes may also be at risk for uninsured losses due to hurricane-related flooding, as flooding is excluded under standard Homeowners Insurance and Commercial Property Insurance policies. A 2023 survey from the Insurance Information Institute showed that only 22% of homeowners considered themselves at risk for flood, and of those, 78% purchased Flood Insurance—43% through FEMA’s National Flood Insurance Program (NFIP) and 35% through the private Flood Insurance market, which can provide higher limits and more comprehensive coverage.
“I would encourage anyone to purchase Flood Insurance, regardless of whether or not they are in a flood zone,” Willis said. “When you are not in a flood zone, it is very inexpensive. I would hate to know that I lost everything just because I simply did not carry a very low-cost policy.”
I would encourage anyone to purchase Flood Insurance, regardless of whether or not they are in a flood zone.
Property owners should review how their specific policy would respond in the event of hurricane damage, including roof coverage and whether the policy provides Replacement Cost Value (RCV) coverage, which pays to rebuild the property with similar materials, or Actual Cash Value (ACV) coverage, which factors in depreciation. Deductibles may also be structured differently depending on the policy: a Named Storm Deductible, typically ranging from 2% to 5% of the insured value, applies only when a storm is officially named by the National Weather Service, while a Wind/Hail Deductible applies regardless of whether a storm is named.
“As we ebb and flow between a hard and soft insurance market, having these conversations and asking questions is so important,” Willis said. “A huge part of being prepared for the hurricane season is making sure that you are knowledgeable about your insurance policy, and you know how it is going to be utilized when you have a loss.”
A huge part of being prepared for the hurricane season is making sure that you are knowledgeable about your insurance policy, and you know how it is going to be utilized when you have a loss.
Steps to take before hurricane season
National Hurricane Preparedness Week is May 4-10, serving as a reminder for homeowners and business owners to evaluate their hurricane risks, update emergency plans and gather necessary supplies. According to Willis, this could include updating and maintaining roofs, installing hurricane straps and wind-resistant glass, and securing anything outside that could blow away in high winds.
“If you approach your risk from those two angles—reviewing your insurance limits and coverages and then making any updates and mitigations to your property—you can confirm you are going into the season in the best way that you can,” she said. “Putting your best foot forward is the priority.”
Impact-resistant materials are valuable upgrades, and some states may offer sales tax holidays during Hurricane Preparedness Week, Heaner said. “Investing in those types of things cannot prevent damage completely, but it can definitely help mitigate some of the more extensive damage,” he said. “That is an opportunity to get ready and have a plan in place to mitigate how much loss you could incur.”
