Connecticut Homeowners Struggle with Insurance Non-Renewals
In 2023, approximately 14,400 Connecticut homeowners received non-renewal notices from their insurance carriers, marking a 45% increase from the previous year. This surge reflects a national trend where insurance companies are becoming more cautious about policy renewals due to intensifying weather events and potential claims costs.
Rising Non-Renewal Notices
According to data from the Connecticut Insurance Department, the number of non-renewal notices spiked from less than 10,000 in 2022 to over 14,000 in 2023. Fairfield County ranked among the top 100 counties in the United States for non-renewals, with 1.59% of policyholders affected. Other areas, such as Litchfield County, also saw significant increases in non-renewals, rising from 0.64% to 1.29% over five years.
Factors Contributing to Non-Renewals
Insurance carriers are increasingly wary of weather-related risks, including wind storms and wildfires. The Trump administration’s tariff war has also raised concerns about potential increases in claims costs for auto and home repairs. Travelers CEO Alan Schnitzer noted that while the impact of tariffs on their business is considered manageable, it could still lead to higher premiums.
Premium Increases
The average Connecticut homeowners insurance premium rose by 16% between 2021 and 2024, reaching just over $2,500 for $350,000 in replacement coverage. Premiums vary significantly depending on location and carrier, with quotes for $300,000 in coverage ranging from $1,370 to $6,430 in Stamford and $1,290 to $4,780 in Manchester.
Options for Homeowners
Homeowners who receive non-renewal notices can seek coverage in the “surplus lines” market, although this often comes with higher rates. The Connecticut Insurance Department also offers assistance in resolving complaints related to non-renewal. As a last resort, homeowners can turn to the Connecticut Fair Plan for coverage.
Industry Response
Insurance carriers must provide a 60-day notice before non-renewing a policy. Regulators have rescinded or reconsidered some non-renewal decisions, but complaints remain relatively low, with about 35 logged in the first 100 days of 2025.
As the insurance landscape continues to evolve, Connecticut homeowners must navigate these changes to maintain adequate coverage for their properties.
