Connecticut Homeowners Face Potential $80 Insurance Premium Increase
A recent report by Insurify projects that Connecticut homeowners may face an average increase of $80 in their property insurance premiums due to tariffs imposed on building materials. This change could push the average annual premium to just over $2,800.
The national average increase is expected to be $106, raising the typical annual homeowners insurance premium to approximately $3,625. The tariffs affecting Canadian lumber, Mexican gypsum, and Chinese appliances and components are primarily responsible for this potential hike.
The Consumer Federation of America has noted a 16% rise in Connecticut homeowners insurance premiums between 2021 and 2024. In states like Florida, which is already experiencing a home insurance crisis, the average increase could be as high as $464, potentially pushing annual premiums to nearly $16,000.
Industry experts are closely monitoring the situation. Rob Berkley, CEO of W.R. Berkley, a Greenwich-based underwriter, stated that his company is actively assessing the actuarial implications of a prolonged tariff war. Florida homeowners have cited insurance costs as their top concern in a recent Florida Atlantic University survey on climate resilience.
The impact of tariffs on insurance premiums varies by state, with Vermont expected to see the smallest increase at $37 on average. As the situation develops, insurance carriers are likely to adjust their rates accordingly, reflecting the changing landscape of construction material costs and their impact on property values and insurance coverage.
