Tariffs to Drive Up Homeowners Insurance Costs
Tariffs aren’t just affecting the cost of goods; they’re also expected to increase the cost of services like homeowners insurance. According to Matt Brannon, data journalist for Insurify, tariffs will raise construction material costs, making it more expensive for insurance companies to rebuild homes.
“Before tariffs were imposed, we expected homeowners insurance costs to rise about 8% this year,” Brannon said. “Now, with tariffs, we expect that cost to rise about 11% this year.” This represents a 38% faster increase in homeownership costs than previously anticipated.
The National Association of Homebuilders reports that 60% of their suppliers have already raised construction material prices due to tariffs. While policyholders may not see immediate rate hikes, Brannon warns that increases could start by the end of the year.
To mitigate these rising costs, Brannon suggests comparing coverage and obtaining quotes from multiple providers to find better deals. Policyholders can also check with their current insurer for potential incentives for fortifying their homes against extreme weather, which might lower premiums. Another option is raising deductibles, although this means higher out-of-pocket costs in the event of a claim.
“The easiest thing you can do is compare your coverage and get quotes from multiple providers,” Brannon advises. “You can also check with your current insurer to see if they offer incentives for making your home safer, which could result in lower premiums.”
