2025 saw relatively fewer natural disasters. Will you get a break on home insurance?

People in the remnants of a home in London, Kentucky after it was hit by a tornado in May 2025. Home insurance costs are expected to increase this year in states that have suffered hail and tornado damage from big convective storms.

Disaster costs fell in the U.S. in 2025. Still, it was the fourth time in five years that extreme weather inflicted more than $100 billion in annual losses. Industry experts say the growing financial toll will make insurers wary of rushing to cut rates.

(Image credit: ALLISON JOYCE/AFP via Getty Images)