The State of
Restoration
The US property-restoration industry exists because of disaster, and disaster is accelerating. Here is the verified data — sourced from NOAA, FEMA, the Insurance Information Institute, and IBISWorld — on the storms, the claims, the market, and the labor behind it.
Billion-dollar disasters are getting more frequent — and more expensive.
In 2024 the United States was hit by 27 separate billion-dollar weather and climate disasters — the second-most on record — causing $182.7 billion in damage and 568 deaths. The single costliest was Hurricane Helene ($79.6B), followed by Hurricane Milton ($34.3B).
By type, severe storms are the most frequent, but tropical cyclones do the most damage:
| Disaster type (1980–2024) | Events | Total cost |
|---|---|---|
| Tropical cyclones | 67 | $1.54 trillion |
| Severe storms | 203 | $514.3 billion |
| Drought | 32 | $367.5 billion |
| Flooding | 45 | $203.0 billion |
| Winter storms | 24 | — |
| Wildfire | 23 | — |
| Freeze | 9 | — |
And disaster is not spread evenly. By federal disaster declarations (1980–2026), five states carry the load:
| State | FEMA disaster declarations |
|---|---|
| California | 359 |
| Texas | 353 |
| Oklahoma | 235 |
| Washington | 194 |
| Florida | 167 |
Sources: NOAA NCEI Billion-Dollar Weather and Climate Disasters (2024 figures via NOAA Climate.gov); FEMA OpenFEMA (state declarations via USAFacts). NOAA NCEI inflation-adjusts to 2024 dollars; the agency announced in 2025 it would stop updating this product, so figures are current through 2024.
Water is the quiet emergency. Fire is the expensive one.
Most restoration work flows through an insurance claim. The Insurance Information Institute's data (from ISO/Verisk, 2019–2023) shows what those claims actually look like — and water damage is the second-most common cause of a homeowners claim, behind wind & hail.
| Cause of loss | Claim frequency | Avg. claim severity |
|---|---|---|
| Fire & lightning | ~1 in 430 homes/yr | $88,170 |
| Water damage & freezing | ~1 in 67 homes/yr | $15,400 |
| Wind & hail | ~1 in 36 homes/yr | $14,747 |
| Theft | ~1 in 850 homes/yr | $5,524 |
Water damage & freezing accounted for 22.6% of all homeowners insurance losses in 2023 — the second-largest single cause, behind wind & hail (42.5%) and just ahead of fire & lightning (21.6%).
And the bill keeps growing. US insured catastrophe losses hit $115.6 billion in 2024 — a near-record — after $108.6B in 2022 and $93.3B in 2021. Roughly 5.6% of insured homes file a claim in an average year.
Source: Insurance Information Institute — Homeowners & renters insurance (frequency, severity, and share by cause, ISO/Verisk 2019–2023); III — U.S. catastrophes (insured loss totals).
A $7.2 billion industry of mostly small operators.
The US damage-restoration niche — water, fire, mold, and storm — is roughly $7.2 billion in annual revenue and growing about 4% a year (per IBISWorld). It is spread across about 62,582 firms employing ~115,280 people, which works out to fewer than two workers per firm on average. This is an industry of independent operators.
A data note worth getting right: the broader "remediation & environmental cleanup" category (NAICS 562910) is ~$27B — but that includes Superfund, asbestos, and hazmat work. It is not the property-restoration market, even though it's frequently mis-cited as such. The restoration niche is ~$7.2B.
Sources: IBISWorld — Damage Restoration Services (6278); BLS QCEW (NAICS 562910); Mordor Intelligence (fragmentation).
More disasters, fewer hands to do the work.
The work is growing while the workforce shrinks. The construction trades — which restoration draws from — need an estimated 349,000 net new workers in 2026 just to keep pace, with retirement now the dominant driver of the gap (roughly 1 in 5 electricians is over 55). In restoration specifically, finding and keeping skilled labor is contractors' #1 reported challenge.
Sources: Associated Builders and Contractors (ABC), 2026 workforce projection; R&R Magazine 360 Outlook survey.
Rising demand, flat headcount — the gap is operational.
The data points one direction: more claims, larger losses, and fewer technicians to handle them. For restoration owners, the constraint is no longer demand — it's the operational drag between a missed call and a paid claim. The firms that win the next decade will be the ones that answer every call, document every job to carrier standard the first time, and move claims faster with fewer people. That's the entire reason Proof exists.
Restoration industry data, answered.
How many restoration companies are there in the United States?
There are approximately 62,582 damage-restoration businesses in the US (2025, per IBISWorld), employing roughly 115,280 people. The industry is highly fragmented — the largest franchise network, Servpro, has about 2,250 locations.
What is the average water-damage insurance claim?
The average US homeowners water-damage and freezing claim was $15,400 over 2019–2023 (Insurance Information Institute, from ISO/Verisk data). For comparison, fire & lightning averages $88,170 and wind & hail averages $14,747.
What is the most common type of home insurance claim?
Wind & hail is the most frequent peril (about 1 in 36 insured homes files a claim per year), followed by water damage & freezing (about 1 in 67). Water damage accounted for 22.6% of all homeowners losses in 2023 — the second-largest single cause.
How many billion-dollar disasters does the US have each year?
The US had 27 separate billion-dollar weather and climate disasters in 2024, totaling $182.7 billion (NOAA NCEI). Since 1980 there have been 403, costing over $2.9 trillion. The annual average has risen from about 9 events (1980–2024) to about 23 events (2020–2024).
Which US states have the most natural disasters?
By federal disaster declarations (1980–2026, FEMA): California leads with 359, followed by Texas (353), Oklahoma (235), Washington (194), and Florida (167). California and Texas each average more than 7 declared disasters per year.
How big is the US restoration industry?
The US damage-restoration niche (water, fire, mold, storm) is roughly $7.2 billion in revenue (2025, IBISWorld), growing about 4% a year. Note: the broader 'remediation & environmental cleanup' category (NAICS 562910) is ~$27B, but that includes Superfund/hazmat work and is often mis-cited as the restoration market.
Every figure, sourced.
This report aggregates publicly available data from primary sources. Figures are attributed inline; the full source list:
• FEMA — OpenFEMA Disaster Declarations
• Insurance Information Institute — Homeowners & renters insurance
• Insurance Information Institute — U.S. catastrophes
• IBISWorld — Damage Restoration Services
• US Bureau of Labor Statistics — QCEW (NAICS 562910)
• Associated Builders and Contractors — workforce data
Have a correction or a data source we should add? Email hello@proofco.ai. We keep this report current.
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