Connecticut homeowners could face an $80 increase in their property insurance premiums in the coming year, primarily due to higher tariffs on building materials. Industry experts warn that some policyholders may even be dropped by their insurance carriers altogether.
According to a report by Insurify, a insurance quote engine, the average annual premium for homeowners insurance in Connecticut could rise to just over $2,800. This represents an increase of about $80 from the current average premium.
Nationally, the average increase in homeowners insurance premiums is expected to be $106, bringing the average annual premium to $3,625. The impact of tariffs on insurance premiums varies by state, with Florida potentially seeing a significant increase of $464, while Vermont is expected to see the smallest increase of $37.
The tariffs on building materials, including Canadian lumber, Mexican gypsum, and appliances and components from China, are a major factor contributing to the expected increase in insurance premiums. The National Association of Home Builders notes that U.S. home builders and renovators rely heavily on these imported materials.
The Consumer Federation of America estimates that Connecticut homeowners insurance premiums rose 16% between 2021 and 2024, on average. Insurify bases its estimates on information from Quadrant Information Systems, whose software is used by insurance carriers to compare rates calculated by their actuaries against other companies.
Rob Berkley, CEO of W.R. Berkley, a Greenwich-based underwriter, told investment analysts that his company is closely monitoring the situation and working to understand the actuarial implications of a prolonged trade war.
In Florida, where home insurance is already in crisis mode, homeowners cited insurance costs as their top concern in a recent survey conducted by Florida Atlantic University. An expert noted that Florida residents are ‘connecting the dots’ between climate change, hurricanes, and soaring insurance premiums.
