Property Insurance Premiums Drop After Calm 2025

Property insurance rates are falling after a hurricane-free 2025, with increased competition driving double-digit premium drops.

January 13, 2026

Jordan B.

Property insurance premiums in the US are declining after a hurricane-free 2025.
Insurers expect double-digit premium decreases in early 2026 as more companies enter the market.
Insured losses from disasters in 2025 were lower than recent years, aiding market stability.
Analysts say future premium increases hinge on the scale of insured catastrophe losses in 2026.

Key Takeaways

Insurance Market Relief

Property insurance premiums across the US are finally declining after years of relentless hikes, reports Bisnow. Following a decade with at least one hurricane landfall every year, 2025 saw no hurricanes hit the US coastline. The result was immediate: the property insurance market, under pressure from years of mounting billion-dollar disasters, now shows double-digit rate reductions for many commercial owners.

Industry experts, including senior executives at Brown & Brown and Howden, anticipate lower insurance costs will remain through at least mid-2026. Heightened competition and improved cash reserves among insurers are boosting their willingness to write new property insurance policies.

What Drove Premium Decreases

Historically, rising hurricane and wildfire losses drove up property insurance premiums, sometimes more than doubling owners’ costs over the past five years. According to Marsh, commercial property rates rose between 6% and 19% each quarter from 2021 to 2023, spiking particularly after major storms like Helene and Milton in 2024.

The lack of hurricanes in 2025 led directly to a premium drop—9% year-over-year in Q3 2025, based on Marsh data—helping insurers rebuild cash and blunting volatility. Although wildfires and severe flooding caused substantial damage, insured property losses were, overall, the lowest since 2019.

Market Stability and Risks Ahead

Despite significant incidents like the Eaton and Palisades wildfires, which cost up to $131B in economic losses, insured property losses remained manageable for the sector. This shift comes after several years in which severe storms and rising premiums placed mounting pressure on commercial real estate owners, particularly in coastal and high-risk markets. Insurance consultants emphasize that only a year with over $100B in insured catastrophe losses could reverse this premium drop and return the market to tumultuous ‘hard market’ conditions.

For now, property insurance premiums remain favorable, but the durability of this trend hinges on another quiet hurricane season. Market observers and property owners alike are watching closely as 2026’s storm season approaches.