The storm hit Cozad, Neb., in the early hours of June 29, 2024. Wind like a hurricane and hail the size of softballs pummeled the town of about 4,000. Cars had broken windshields, siding was stripped, paint rubbed away and nearly every roof began leaking. The local hospital’s emergency department closed for hours and the building remained under repair more than a year later. One local insurance agent estimated the event caused about $100 million in damage.
Hailstorms like Cozad’s rarely make national headlines because they tend to be hyper‑local — one town or one neighborhood — and are less deadly than floods, hurricanes or wildfires. But they can be extremely costly, and researchers warn extreme hail is growing more likely in the U.S. Across the central and eastern states, the kind of atmospheric conditions that produce large hail have become more common, and the Great Plains are expected to see more frequent hail as the planet warms.
That rising risk is one reason homeowners in the middle of the country are facing sharp increases in insurance costs. Federal analyses and industry data show areas with higher hail exposure have seen some of the fastest‑growing homeowners premium increases. “In the Midwest, you’ve seen a surprising increase in losses,” says Robert Gordon of the American Property Casualty Insurance Association. “It’s particularly the hail, the wind. A lot of damage to roofs.”
North America has the world’s worst hail risk. Hail damages everything left outdoors — roofs, siding, windows, cars — and the U.S. simply has more insured property in harm’s way. Hailstorms nationwide caused an estimated $160 billion in home damage in 2024, according to the Insurance Information Institute. That figure doesn’t count all smaller storms that still can leave extensive damage.
With mounting losses, insurers have raised prices. A Treasury Department analysis found homeowners insurance costs grew about 8% faster than inflation between 2018 and 2022. The average homeowner in parts of the Plains now pays well above the national average: Bankrate reports Nebraska’s average homeowners insurance in one recent year was nearly $6,400 — roughly $4,000 more than the national average.
Higher property claims aren’t the only driver. Inflation has pushed up the cost of labor and building materials, which raises the tab for repairs and replacement after a loss. Insurers point to those higher rebuilding costs when explaining premium increases.
While insurers have increased rates, that hasn’t always translated into more generous coverage. Many policyholders in places hit repeatedly by hail now face higher deductibles and more coverage limitations. Some policies exclude full roof replacement costs or carry separate, steep deductibles for roof damage. The result: homeowners pay more in premiums but may face larger out‑of‑pocket costs when a storm hits.
The changes are squeezing communities. In Cozad, some homeowners are still repairing damage more than a year later, often paying for work themselves because policies didn’t cover all costs or because deductibles are so high. Seniors on fixed incomes are especially vulnerable. Baltazar and Soledad Avalos, who have lived in their Cozad home 35 years, remain repairing their roof themselves; their insurance didn’t cover the full cost, and premiums have risen.
Small businesses and public institutions face similar pressures. After Cozad’s hospital roof was destroyed, one insurer refused to renew coverage. The hospital found only policies with higher premiums and larger roof deductibles, forcing it to set aside more cash and to make the building more storm‑resistant. The governing board opted to upgrade the roof using stronger materials; that lowered the hospital’s premiums but increased its immediate capital costs. Even so, hospital leaders say the situation is “to a point of unsustainability” — another major storm could drain the facility’s reserves.
Landlords and property owners in low cost‑of‑living places are also selling properties rather than passing unaffordable costs onto tenants. Jennifer McKeone, who owned two rental houses in Cozad, saw insurers refuse to continue coverage after the hailstorm. The only available policies would have forced rents so high her tenants couldn’t afford them; she decided to sell.
At the same time, the insurance industry’s overall financial position has seen big swings. After industry losses of more than $10 billion in 2023, insurers reported about $26 billion in profits in 2024, according to AM Best. Insurers say such volatility reflects the episodic nature of catastrophes: some years bring huge losses, others produce gains. But regulators and consumers watch both prices and market behavior — nonrenewals, tightened underwriting and pulled coverage — because they affect housing affordability and community stability.
Policyholders respond by shopping around, accepting higher deductibles or doing repairs themselves to avoid future claims. Some take mitigation steps — installing more resilient roof materials, for example — which can reduce premiums. But mitigation is costly upfront and not always feasible for low‑income or fixed‑income residents.
The insurance affordability problem is complex: climate‑driven increases in hail and other severe weather are raising the frequency and severity of property losses; inflation and higher construction costs make repairs costlier; and insurers respond by raising premiums, limiting coverage or withdrawing from high‑risk markets. Those shifts leave many homeowners paying more for less protection — a burden felt most acutely in places without traditionally discussed climate risks, like wildfires or hurricanes, but where hail and other convective storms are becoming more damaging.
For towns like Cozad, the storm’s damage serves as a case study in how localized severe weather, amplified by changing climate patterns and broader economic forces, can reshape insurance markets and strain small communities. The choices insurers, regulators and policymakers make in response will affect whether homeowners can reasonably afford to keep and maintain their homes in these higher‑risk areas.
