State Farm paid a record $5.6 billion nationwide for hail-related insurance claims in 2025—up 12% from 2024—according to its latest annual hail claims report. Texas led all states with $1.4 billion in payouts, reflecting a 27% year-over-year surge and reinforcing its status as the nation’s most hail-impacted state. Missouri ranked second ($892 million), with payouts rising 10% from 2024, while Illinois dropped to third ($765 million) after a 28% decline in claim payments.
Notably, hail damage became more geographically dispersed in 2025: the top 10 states accounted for $4.2 billion—or 75%—of total payouts, down from over 80% in 2024 ($4.0 billion of $5.0 billion national total). Four states—Wisconsin, Kentucky, Arkansas, and Indiana—entered the top 10 for the first time, each seeing at least a doubling of hail claim dollars. Meanwhile, Iowa and South Carolina—the lowest-ranking states on the 2024 list—each received $109 million in hail payouts in 2025.
Oklahoma stood out both statistically and legally: despite a 21% drop in hail-specific payouts, it rose to fifth place nationally—and joined wind claims to surpass $1 billion in combined 2024–2025 payouts. This drew heightened attention following an NBC Nightly News report (March 11, 2026) on *Hursh v. State Farm*, a class-action lawsuit alleging systemic underpayment and denial of roof claims through a “secret bad-faith scheme.” Oklahoma Attorney General Gentner Drummond moved to intervene in December 2025; State Farm appealed, and the case now awaits final judgment from the state Supreme Court.
In response, State Farm acknowledged mounting public concern: “Media reports and lawsuit allegations frame individual claim disputes as evidence of a broader, intentional effort to underpay or deny wind and hail roof claims,” the company stated. “This is an accusation we take seriously and strongly reject.” It added that such coverage “is shaping public perception at a time when many homeowners are already stressed by storm damage, rising repair costs, and higher premiums.”
As climate-driven severe weather intensifies, State Farm’s data underscores both the escalating financial toll of hail—and the growing pressure on insurers to balance actuarial rigor with transparency and trust.
Source: NBC Nightly News, March 11, 2026, “Oklahoma lawsuit alleges State Farm cheats homeowners”
Source: https://www.insurancejournal.com/news/national/2026/04/23/866942.htm
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