Property Claims Decline as Regional CAT Events Intensify

• By: AnneMarie McPherson Spears
• July 8, 2026

U.S. property claim volume continued to decline in the first quarter of 2026, while catastrophe activity remained concentrated in specific regions, according to Verisk’s 2026 “Quarterly Property Report.”

U.S. claim volume in the first quarter fell 8.9% year over year and was 13.1% below the five-year average, according to the report. CAT claims declined 9.6% year over year, while non-CAT claims fell 8.6%. CAT claims accounted for a third of total claims, matching the historical average.

Texas led the U.S. in the first quarter for claim volume, followed by Ohio and California. Together, the three states accounted for nearly a quarter of all U.S. claims. Texas and California claims involved multiple weather events and perils, while Ohio’s claims were driven primarily by a March 13-14 wind event in which more than 1.5 million residential properties were exposed to wind gusts of at least 60 mph.

Water was the leading U.S. cause of loss in the quarter, accounting for 31.1% of claim volume and increasing 6% from a year earlier. Ice and snow claims rose 188.7%, driven by winter storms Fern and Hernando, and accounted for 5.6% of total claim volume.

While overall claims declined, localized catastrophes caused intense regional volatility. Hawaii saw CAT claims rise by 1,900% in the first quarter of 2026, driven by a March Kona Low that produced wind, water and flood claims. The pressure system generated more than 2,000 claims on Oahu, totaling more than $14 million in replacement cost value, with that figure expected to rise as more complex claims are completed.

Montana, Wyoming and Idaho followed the three leading states for claims volume with CAT claim increases of 827%, 814% and 804%, respectively, thanks to a March wind event that exposed more than 140,000 residential properties to wind gusts of 70 mph or more and produced more than 1,500 claims with an estimated $14.5 million in replacement cost value.

Meanwhile, nine states posted CAT claim declines exceeding 50%, with Alaska leading the drop at 87%, Florida at 83% and California at 80%. These decreases are tied to a quieter first quarter than last year, with 2025’s first quarter bringing Alaska’s Anchorage windstorm, late-reported Florida hurricane claims and California wildfire claims from the Palisades and Eaton fires.

Average U.S. claim severity for the first quarter was $16,079, down 12.1% from Verisk’s adjusted 2025 figure, which excludes California fire and smoke claims from the Palisades and Eaton fires. While the first quarter’s claim severity was 3.4% below the adjusted five-year average, Verisk anticipates the total to rise as complex claims close. Assuming a typical 10% maturation, the average claim would be $17,687, making 2026 the second-highest year for severity on record, behind 2025.

Reconstruction cost increases are also beginning to ease, increasing by 3.4% year over year, down from 5.3% in the first quarter of 2025. However, fuel costs rose 42.7% in the U.S., with most of the increase occurring in March.

The improved catastrophe landscape is one contributing factor to property & casualty’s strong first-quarter results, according to a separate report from Verisk and the American Property Casualty Insurance Association (APCIA). The industry posted an estimated net underwriting gain of $15.8 billion in the first quarter of 2026, compared with an $864 million underwriting loss in the first quarter of 2025, when results were affected by large-scale catastrophe activity, including the Palisades and Eaton wildfires.

The industry’s combined ratio improved to 92.4%, down from 99.2% in the same period a year earlier. In addition to fewer catastrophes, improved personal auto underwriting also helped the P&C industry’s results. However, the report noted that casualty lines remained under pressure and that legal system abuse and rising claims severity continued to be significant industry headwinds.

AnneMarie McPherson Spears is IA news editor.