Rising Home Insurance Costs: A Growing Concern for Homeowners
Home insurance costs are on the verge of a significant increase, driven by a combination of factors including President Donald Trump’s tariffs on building materials and ongoing supply chain disruptions. According to an analysis by Insurify, an insurance comparison company, home insurance prices are expected to rise by 11% by the end of 2025. This increase is three percentage points higher than it would have been without the tariffs.
The tariffs, which have been imposed on various materials used in home building and repair, such as wood, plastics, glass, and metals, are expected to increase the cost of building a home by $10,900 per home, according to the National Association of Home Builders. Six in 10 builders surveyed by the association reported that their suppliers have already increased material prices due to the tariffs.
:max_bytes(150000):strip_icc():format(webp)/GettyImages-1344126439-c8c5ae8eb45b4943a3c58909074410ce.jpg) The increased costs will likely be passed on to homeowners in the form of higher insurance premiums. Insurify estimates that the average homeowner will pay $3,626 annually on home insurance by the end of the year, $106 more than without the tariffs. However, this increase may not be immediate, as insurers often need to obtain regulatory approval to raise their prices, a process that can take several months or even years.
The tariff-induced price increases will add to already elevated home insurance costs, which have been rising due to supply chain interruptions caused by the COVID-19 pandemic and an increase in natural disasters attributed to climate change. The cost to repair a home increased by 55% from 2019 to 2022, according to the Insurance Information Institute. In 2024, home insurance costs rose 8%, following a 20% increase in the previous two years.
As a result, homeowners can expect to pay more for their home insurance in the coming years. It is essential for homeowners to be aware of these changes and to review their insurance policies regularly to ensure they are adequately covered.
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