Connecticut Homeowners Face Insurance Premium Increase Due to Tariffs
A recent report by Insurify indicates that Connecticut homeowners could face an average increase of $80 in their annual property insurance premiums due to tariffs imposed on building materials. This rise is part of a national trend where the average homeowners insurance premium is expected to increase by $106, reaching approximately $3,625 annually.
The tariffs, which affect materials such as Canadian lumber, Mexican gypsum, and appliances from China, are a significant factor in this projected increase. Connecticut homeowners currently pay an average of about $2,720 per year for home insurance, which could rise to just over $2,800.
The Consumer Federation of America has reported a 16% average increase in homeowners insurance premiums in Connecticut between 2021 and 2024. Insurify’s estimates are based on data from Quadrant Information Systems, which insurance carriers use to compare rates.
The impact of tariffs on insurance premiums varies by state. Florida, for instance, is expected to see an average increase of $464, bringing the average annual premium to nearly $16,000. Vermont is projected to have the smallest increase at $37.
Industry experts, including Rob Berkley, CEO of W.R. Berkley, are closely monitoring the situation. Berkley noted that his company is actively assessing the implications of the tariffs on their actuarial calculations and potential rate adjustments.
The issue of rising insurance costs is particularly pressing in Florida, where homeowners have cited insurance expenses as their top concern regarding climate resilience, according to a Florida Atlantic University survey. Residents are increasingly connecting the dots between climate change, hurricanes, and soaring insurance premiums.
As the situation continues to unfold, homeowners in Connecticut and across the nation may need to prepare for potential increases in their insurance costs due to the ongoing trade policies and their effects on building materials.
