Survey: Most property stakeholders feel coverage lacks full protection against extreme weather

Key takeaways

Extreme weather events are increasing in frequency and cost—and most property owners don’t feel their insurance fully covers them. According to Nationwide’s Commercial Lines Protection Survey, only two in five property stakeholders feel their current coverage provides full protection against severe weather disasters, while nearly 20% feel only moderately protected or not protected at all. 

For independent insurance agents, these findings represent a critical opportunity to have conversations with clients about protecting their workers, property and operations. 

Understanding extreme weather events

For the first time in a decade, no hurricanes made landfall on the continental United States. That didn’t spare the country from massive damage due to weather disasters, though. 

The year began with the devastating Los Angeles wildfires that caused more than $60 billion in damages and by December there had been a total of 23 extreme weather events that each caused more than $1 billion in property damage. 

As high as that number of extreme events seems, it amounts to what has become an average year for these disasters. 

Over the last five years, NOAA data shows that there have been 115 billion-dollar events (an average of 23 events per year), resulting in a total of $746.7 billion in total damage costs. During the 1980s, there was an average of 3.3 such events per year, and in the 1990s, this rose to 5.7 billion-dollar events per year (adjusted for inflation). 

This rising frequency points to a reason why natural disasters are the top concern for property stakeholders¹ across the country, according to our new Commercial Lines Protection Survey. More than 60% of respondents to our survey identified natural disasters as the top risk to their property – higher than risks posed by labor shortages (53% of responses), material shortages (45%), water damage (41%), and regulations or zoning changes (35%).  

What are the top weather risks concerning property stakeholders?

According to national statistics, severe thunderstorms are the most frequent event that lead to billion-dollar disasters, and 2025 was no exception. Of the 23 billion-dollar disasters last year, 21 were severe storms totaling $50.7 billion in damages. 

Since 2020, severe storms have accounted for two-thirds of billion-dollar disasters and about 28% of the total damage costs over the same time period. Meanwhile, hurricanes have accounted for 15% of the large-scale events and more than 46% of the total damage costs. 

Our survey shows that property stakeholders have a high degree of concern about the byproducts of these storms. Survey results show 80% of respondents in states that are prone to severe convective storms² believe they are most at risk from damaging winds, while 76% also selected flooding. States typically hit by hurricanes³ had similar responses with 78% saying they were most at risk from damaging winds and 76% reporting flooding. 

Overall, the top threats reported by property stakeholders nationally are: 

• Flood (69%) 

• Damaging winds (65%) 

• Drought (51%) 

• Ice storm/severe cold (50%) 

• Wildfire (42%) 

• Hurricane (42%) 

• Lightning (41%) 

• Damaging hail (27%) 

• Earthquake (26%) 

• Tornado (24%) 

This increasing frequency of large natural disasters is putting more people at risk, and according to our survey nearly half (49%) of property owners have reported damage over the last five years. That figure rises to 61% for property owners in convective storm areas and 56% for states typically threatened by hurricanes. This is despite 92% of property stakeholders feeling confident in the structural integrity of their buildings and many taking key actions to reduce risk from severe weather. 

Their top concerns regarding risk to their business include: 

• 56% stated business interruption 

• 41% said water intrusion 

• 33% sustained structural damage 

• 24% reported smoke/fire damage 

• 24% also reported roof damage 

Top concerns reported in convective storm and hurricane states were similar, except 33% in these regions reported roof damage as the third-highest concern about storm damage. 

Are property owners adequately covered for extreme weather?

Our survey shows that while over 90% of property stakeholders have worked with an agent to secure coverage, there is a significant portion that feel they are not fully protected. In fact, only 2 in 5 feel their current coverage provides full protection against severe weather disasters, and nearly 20% feel that their coverage leaves them only moderately protected or not protected at all. 

In addition, 41% of the respondents who suffered damage from severe weather or a natural disaster in the past 5 years said not all of their damage was covered by their insurance. 

Compounding the issue of rising frequency and more people reporting damage, is that more stakeholders are also looking at coverage cuts to help reduce expenses. Nearly two-thirds (60%) say they are actively looking or interested in reducing insurance expenses as a way to cut costs.  

In general, there are a range of actions that people are taking with their policies in the past 12 months. These include: 

• Bundling policies (84%) 

• Trying to get a better quote from other carriers (77%) 

• Talking with an agent about reducing costs (53%) 

• Raising deductibles to reduce premiums (37%) 

• Opting out of optional coverages (29%) 

• Reducing coverage limits (26%) 

What steps are property owners taking to build weather resilience?

While some are choosing to take more financial risk, property stakeholders are also taking action to help make their buildings more resilient to extreme weather. About two-thirds in severe convective storm and hurricane regions have installed weather-resistant windows or doors. Other actions national property stakeholders are taking include: 

• 57% have installed backup power systems (54% in convective storm states, 70% in hurricane states) 

• 43% have upgraded structures such as reinforced roofing or flood barriers (48% in convective storm states, 40% in hurricane states) 

• 36% have modified the property to manage high winds or hail risk (55% in convective storm states and 39% in hurricane states) 

Diving deeper into their actions: 

• 54% have installed extra bracing for wind 

• 48% have installed impact-resilient doors, windows or flashing 

• 40% have installed storm-resilient roofing such as thicker sheathing, improved flashing, etc. 

To help counter the business interruption that many are concerned about, 57% of respondents across the country, and 57% specifically in convective storm states have developed or updated an emergency preparedness plan. Meanwhile, 50% of those in hurricane states have done the same. 

How can agents help clients manage weather risk?

The findings point to an opportunity for businesses and insurance agents to explore solutions that can help prevent disruptions, strengthen resilience and provide greater peace of mind.  

Nearly all stakeholders report working with an insurance agent to review their coverage and discuss risk management strategies, highlighting the importance of ongoing guidance as weather-related risks evolve.  

Nationwide has resources that help businesses address the risks they face, and an important first step is to develop a business continuity plan. Implementing a business continuity plan is a critical step for organizations to help identify exposures and take action to protect their operations. 

Even if a business states that they have a continuity plan, it should be reviewed as organizations and their needs evolve. Reviewing the continuity plan and performing tabletop exercises can help note strengths and weaknesses. Vulnerability and risk assessments can also uncover additional needs, especially if the business conducts operations or has facilities in other regions of the country that may have different risks. 

Here are some additional resources that can help businesses understand the weather threat and implement protection strategies: 

• Tropical weather 

• Thunderstorms 

• Wildfire 

• Flooding 

Materials on the Risk Management Solutions Center can be shared with customers to help educate them about severe weather events, prepare for emergencies, and establish business continuity plans.