Central Insurance Blog

Severe weather events are becoming more common, destructive, and expensive. From hurricanes and wildfires to hailstorms and flash floods, these events test small businesses’ and homeowners’ preparedness and resilience nationwide. In 2024 alone, the U.S. experienced 24 separate weather and climate disasters, each causing more than $1 billion in losses. 

While some regions have long been considered weather-prone to certain types of risks, others are now facing emerging threats that demand renewed focus on preparation, risk management, and severe weather insurance coverage clarity.

“Weather isn’t just small talk in the insurance world; it’s a major risk factor that directly impacts our customers, our products, and our bottom line,” says Ami Sazma, senior regional sales manager at Central Insurance. “From hurricanes and hailstorms to wildfires and winter freezes, weather events are becoming more frequent and severe. That means higher claims, more complex underwriting, and a greater need for proactive risk management.”

To help make sense of today’s shifting weather risks, we spoke with Sazma and Justin McCarley, another senior regional sales manager at Central Insurance. Together, they outline which states are most vulnerable for certain risks, what kinds of weather events are most damaging, and what severe weather insurance policies may best protect people, property, and business operations from these risks.

What Types of Severe Weather Cause the Most Damage?

Climate change alters precipitation patterns, changes temperatures, and creates more volatile atmospheric conditions across the country. Regions once considered relatively low risk for certain weather risks now see higher frequencies and severities of tornadoes, flash floods, wildfires, straight-line winds, and hail. Add in urban sprawl, aging infrastructure, and supply chain vulnerabilities, and the potential for business disruption dramatically increases, regardless of geography.

The most significant financial losses tend to come from large-scale events that disrupt business operations, destroy property, and require long-term recovery. 

Here, we outline the potential impacts of some of the top severe weather risks:

Hurricanes and Tropical Storms

Hurricanes and tropical storms can bring wind speeds exceeding 150 mph and storm surges reaching 20 feet or more. According to the Insurance Information Institute, hurricanes have caused over $1.3 trillion in total damage in the U.S. since 1980, with inland flooding responsible for much of the destruction.

Tornadoes and Windstorms

The U.S. experiences 1,000+ tornadoes annually, with states like Oklahoma, Kansas, and Alabama among the hardest hit. Even weaker tornadoes and high wind storms can tear off roofs, damage siding and vehicles, and cripple local power infrastructure.

Wildfires

Fast-moving fires driven by drought and wind threaten buildings, equipment, supply chains, and communities. Wildfire activity surged in 2024, when 64,897 fires burned nearly 8.93 million acres nationwide—a record-setting increase compared to previous years. The Texas Smokehouse Creek Fire scorched over one million acres, the largest in state history. 

Hailstorms

Hail losses in the U.S. totaled nearly $60 billion over the past five years, with states like Texas, Oklahoma, and Kansas topping the list. A Colorado Springs hailstorm caused an estimated $1.4 billion in damage to homes, cars, and businesses in 2023. 

Excessive Rain, Flooding, Snow, and Ice

Flooding remains the most common and costly natural disaster in the United States. One inch of floodwater can easily inflict tens of thousands of dollars on a commercial property. The July 2025 Hill Country flash flood in Central Texas dumped an estimated 1.8 trillion gallons of rain in just four hours, causing a sudden surge of the Guadalupe River and tragically taking at least 100 lives. Experts estimate the preliminary economic fallout at $18 to $22 billion.

Remember: Each weather event carries unique risks for small businesses, particularly when it affects infrastructure, HVAC systems, power supply, or transportation access. To understand the rising risks, it’s essential to understand which states are most at risk for severe weather. 

Where Are Severe Weather Risks Rising?

Severe weather insurance is no longer just a coastal concern. While Florida, Texas, and Louisiana have long battled hurricanes and flooding, a broader set of states now face sustained and emerging weather threats. 

Southeast and Appalachia

North Carolina, South Carolina, Georgia, and Tennessee continue to see increased hurricanes, torrential rains, and severe thunderstorms that bring flash flooding, wind damage, hail and occasional tornado activity. These storms strain roads, rooftops, and recovery timelines, especially in rural or under-resourced areas.

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Mountain West

States like Colorado are seeing a concerning rise in wildfires and drought-related weather events. Coupled with snowstorms and freeze-thaw cycles, this creates year-round exposure for businesses reliant on transportation, energy, or agriculture.

Gulf Coast & Central Plains

Alabama, Mississippi, Missouri, Kansas, and Oklahoma sit squarely in “Tornado Alley,” with hail and high-wind events that regularly cause damage to homes, vehicles, and commercial buildings. 

Western U.S.

California continues to grapple with catastrophic wildfires, mudslides, and earthquake-adjacent risks. Alaska faces extreme winter storms, rapid climate change, shifting permafrost, and unpredictable weather patterns that impact structures and supply lines.

How Severe Weather Disrupts Small Businesses

For small businesses, even a short-term storm can cause lasting disruption. Common issues include:

• HVAC Overload: Extreme heat or cold can overtax heating and cooling systems, increasing energy use or causing mechanical failure.

Real World Example: Extreme heat caused AC units to fail in the Cottonwood Mall food court, disrupting operations and damaging refrigeration equipment and inventory.

• Property Damage and Water Intrusion: Wind, rain, and hail can damage buildings, leading to costly repairs and downtime.

Real World Example: A major storm brought heavy rainfall, high tide, and 60 mph winds to Portland’s Old Port. Historic buildings, restaurants on piers, and waterfront commercial properties suffered water intrusion, pilings damage, and closure amid flooding of up to 20-foot tide levels.

• Power Outages: Ice storms, hurricanes, and wildfires can all knock out power, halting business operations for days or weeks.

Real World Example: A power outage during Nantucket’s annual Christmas Stroll left local businesses struggling amid what should have been peak holiday traffic. The downtown outage resulted in an estimated $1.5 million in lost revenue across retailers, restaurants, and vendors.

• Employee and  Customer Access: Snow and ice make travel dangerous, reduce foot traffic, and increase liability exposure for slip-and-fall incidents.

Real World Example: Following an overnight winter storm, a woman slipped on hidden black ice in a Walmart parking lot. The 4th Circuit Court reversed a summary judgment decision, ruling that the store had sufficient notice of snow and ice to require cleanup and could be liable for the injury.

• Loss of Income: When businesses are forced to close, revenue losses can mount quickly. 

Real World Example: A Central Texas river tubing outfitter in New Braunfels and San Marcos saw revenues drop 60% following the Hill Country floods, wiping out what are usually their most profitable weeks of the year. 

Key Coverages for High-Risk Weather Areas

Sazma explains that one of policyholders’ biggest misperceptions is assuming their insurance policy automatically covers all weather-related damage. For instance, many are surprised that many standard homeowners’ insurance policies don’t cover flood damage. Depending on the region and the policy, certain types of wind damage and earthquakes may also be excluded or limited in coverage.

“People also commonly assume that if their neighbor’s damage is covered, theirs will be too,” Sazma says. “But coverage depends on specifics like the cause of loss, type of damage and your policy terms and conditions. With climate change making extreme weather more localized and unpredictable, coverage reviews should happen regularly.”

Having the right protection is essential for extreme weather-prone areas. Here are a few of the most critical policies to consider to help protect your property from severe weather-related risks and beyond.

• Commercial Property Insurance: Covers physical damage caused by hail, wind, lightning, snow/ice accumulation, and much more.
• Flood Insurance: Required separately from most homeowners or commercial property policies, especially in designated flood zones.
• Business Income Insurance: Covers net income loss during interruption due to covered property damage.
• Commercial Auto Insurance: Comprehensive coverage protects business vehicles from hail, floods, wind damage, and more.

The Eye of the Storm: Responding to Hurricane Helene 

Central prepares for natural disasters long before they strike. Its trained response teams assist policyholders quickly, efficiently, and compassionately, helping them navigate claims, secure repairs, and return to normal operations as soon as possible.

2024 was a record-setting year for catastrophes for Central. Hurricane Helene’s devastation was immediate, cutting off millions of people from food, water, and electricity. Central’s adjusters arrived shortly after the storm to find restaurants closed, grocery stores empty, and power outages everywhere. 

Learn More: 7 Reasons People Love Central’s Claims Process

Despite handling nearly 1,900 claims, Central field adjusters took the time to stock up on bottled water, food, and other essential supplies for Central policyholders. In addition to settling 75% of Hurricane Helene claims in 45 days—less than the industry average across the country following such an extreme event—this extension of Central’s commitment to hospitality embodies what it means to fulfill the promise to those who place their trust in Central each day.

“You can have the best products, the best ideas, the best vision—but it really comes down to the people who deliver all those things. I’ve worked in insurance for 31 years, and I’ve never seen a group step up like this one did in the aftermath of Hurricane Helene. They pitched in, worked long hours, and made sure our policyholders were taken care of when they needed us most. The collective effort was powerful, truly motivational, and a testament to Central’s culture.” 

Scott Russo, Senior Property Complex Claims Manager

Preparedness: How to Weather Severe Storms

While we can’t always predict severe weather, preparation and the right insurance can make all the difference. During catastrophic weather events, line-of-business specialization and strategic field presence prove invaluable, supporting rapid response and streamlined decision-making. Central’s structured claims response and tireless team efforts provide policyholders with the support they need when they need it most. The team works proactively with policyholders and agent partners before storm season begins. Below are a few examples of what that collaboration looks like in action: 

1. Pre-storm Planning and Preparation 

Central’s team of experts can help businesses safeguard their property, equipment, and records before a storm hits. Checklists may include steps for securing windows and doors, protecting key data, backing up power sources, and verifying insurance documents, all designed to minimize disruption and ensure faster recovery.

2. Emergency Communication Support

Clear, timely updates are critical during and after an event. Central helps agents and policyholders stay informed through coordinated communications, 24/7 claims access, and real-time alerts to ensure they know what to expect and feel confident that Central is ready to support them. 

3. Loss Control Consultations 

Central’s loss control team can conduct risk assessments and recommend mitigation strategies in advance for businesses in high-risk zones. Whether reinforcing structures, updating emergency protocols, or identifying insurance gaps, these proactive consultations help strengthen business resilience before severe weather strikes.

What Can You Do to Prepare?

It’s not possible to stop a storm or prevent a heatwave, but there are essential steps you can take to prepare for them. The key is proactive risk management.

• Understand Your Coverage: Know what your policy does and does not cover
  
• Harden Your Property: Reinforce your roof, install storm shutters, elevate utilities, and secure outdoor equipment
  
• Create an Emergency Plan: Develop a business continuity and evacuation plan for different scenarios, and regularly practice implementing it
  
• Document Everything: Keeping an up-to-date inventory with photos and receipts can help simplify claims
  
• Stay Informed: Sign up for local weather alerts and monitor seasonal forecasts
  
• Talk to Your Agent: Your agent can help assess your risk and tailor your coverage to your location and operations

While we can’t control the weather, we can control how prepared we are, and that can make a big difference.

The Central Difference 

Severe weather is becoming more frequent and disruptive across the country. Whether you operate a business in the tornado-prone Midwest or a home along the coast, reviewing your policies, understanding your risks, and ensuring your coverage is built for today’s climate is essential.

Central’s specialized underwriting and loss control teams work with you to pinpoint vulnerabilities before a storm hits. Its world-class claims service, supported by a long-standing AM Best “A” Excellent rating, gives you confidence backed by an insurance partner ready to respond with its best when disaster strikes.

Need help evaluating your exposure and severe weather insurance needs? Find a Central agent to learn more about coverages designed to help you weather any storm.