Why the 2025 hurricane season will be different

The height of hurricane season, mid-August through the end of September, is here. And this time, many experts are reporting that an evolving mix of risks will likely play a role in shaping the impact of these powerful storms in 2025.

Changing weather patterns, fluctuating ocean temperatures across the Pacific and Atlantic oceans and shifts in government spending are all various factors taken into consideration when predicting outcomes for this year’s hurricane season. In early August, experts at the National Oceanic and Atmospheric Administration shared updated forecasts of up to nine hurricanes before December. With this higher-than-average prediction, it will be important for insurance agents to adequately review policies with their clients and ensure they have the resources they need to stay prepared.

The 2024 hurricane season and its impact on policyholders

Last year’s hurricane season was one of the costliest on record for the U.S., reaching nearly $183 billion in damages as a result of 27 billion-dollar disasters, surpassing both the average annual number of 23 disasters and the average annual cost of $149.3 billion over the past five years. Most notably, Hurricanes Helene and Milton caused an estimated combined loss of around $115 billion, and the damage went far beyond the initial landfall in both cases. Hurricane Helene’s destruction reached as far as Asheville, N.C., and Hurricane Milton ignited a series of tornadoes across southern Florida.

With the path of destruction extending beyond initially impacted coastal communities, it demonstrated how severe weather systems can impact people differently across the nation. For example, many residents in the southeast regions who were hit by Hurricane Helene were outside of FEMA-designated flood zones, which require flood insurance alongside their typical home mortgages and insurance, leaving many without adequate coverage. For residents in Georgia, North Carolina and South Carolina who were flooded by Helene, less than 1 percent had flood insurance, leading to significant unreimbursed losses.

Another perilous result of hurricanes is storm surges stemming from strong winds that produce a significant rise in sea levels and cause seawater flooding. Storm surges are unexpected, disruptive and costly, but most traditional home insurance policies don’t cover storm surge damage, leaving many homeowners in the dark. This lack of awareness is a leading cause for insufficient coverage and significant out-of-pocket costs. Policyholders need help determining if there are gaps in their current policies, and in their financial savings, to understand whether supplemental disaster insurance is the right investment.

What we can (and can’t) expect for the 2025 hurricane season

The potential impact of this year’s hurricane season is complicated as many coastal homeowners face rising deductibles, shrinking coverage options and higher premiums. Insurance carriers are tightening underwriting standards, raising wind and hurricane deductibles, and in some cases pulling out of high-risk regions altogether. For policyholders, this means that the out-of-pocket cost to rebuild or repair after a hurricane could be higher than in past years. This is especially true when considering the rising cost of construction materials.

Compounding the risks, 2024 was the warmest year on record, according to NOAA, and rising temperatures are expected to directly impact the growing number of major hurricanes and severe storms across the country.

These combined shifts could make this year’s hurricane season feel more unpredictable than usual. Communities should prepare to address recovery methods. As insurance agents, it’s a time to help policyholders understand their options, adequately prepare by reviewing their coverage and make valuable adjustments to their policies, such as adding supplemental coverage.

How agents can help safeguard clients 

1. Stay informed: Keep up with shifts in homeowners insurance trends, such as rising wind and hurricane deductibles and changes in carrier availability. Proactively communicating these changes to clients will help them understand their risk exposure and prepare financially before a storm hits.
2. Encourage proactiveness with clients: Remind and encourage clients to take proactive measures to safeguard their homes by securing structures, elevating homes, clearing debris and monitoring communication resources. You can help prepare your clients by sharing resources like this reputable guide from Ready.gov on how to prepare for various disasters such as hurricanes, wildfires and more.
3. Educate clients about the benefits of having disaster insurance: Support your policyholders by reviewing and educating them on what their current homeowners’ policies cover and their deductible, so they can plan and protect their finances. Disaster recovery insurance products can help fill the gap in traditional home and renters’ coverage by providing quick access to flexible funds within 48 hours of filing a claim after a declared disaster. The risks of severe weather are broad, expansive and happen year-round, from hurricane season causing storm surges on the East coast to tornadoes in the Midwest along with dust storms, wildfires and ice storms, to name a few. Homeowners need flexible policies to offer protection and ease of mind amid stressful weather conditions.

When it comes to the changing ecosystem for weather systems, independent insurance agents are the first line of defense for their clients. With higher-than average predictions for the 2025 hurricane season and shifts to disaster response systems, it will be crucial to educate and support policyholders in determining what they can do to best protect themselves, their homes and their loved ones.

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Jeff Marshall is the chief operating officer at Recoop Disaster Insurance. Contact him at [email protected].