Rising Non-Renewal Notices Leave Connecticut Homeowners Scrambling
In 2023, approximately 14,400 Connecticut homeowners received non-renewal notices from their insurance carriers, forcing them to search for new property insurance coverage. This represents a 45% increase from 2022, mirroring a national trend where insurers are becoming more selective about the risks they cover.
Fairfield County was among the top 100 counties nationwide with the highest percentage of homeowners insurance non-renewals, at nearly 1.6% of policies in force. The trend isn’t limited to coastal areas; Litchfield County also saw significant increases in non-renewals, jumping to 1.29% in 2023 from 0.64% five years prior.
Economic Factors Exacerbating Insurance Crisis
The insurance industry is navigating multiple challenges, including intensifying weather events, wildfire risks, and the potential impact of tariff wars on repair costs. Travelers CEO Alan Schnitzer noted that while the direct impact of tariffs on homeowners’ claims might be limited, inflation and supplier issues are already driving up home repair costs.
State Farm, the largest U.S. homeowners insurance carrier, has warned that inflation and supply chain problems are increasing claims costs, leading to higher premiums. The Connecticut Insurance Department has observed carriers becoming more cautious about policy renewals, particularly regarding properties with older roofs or other potential risk factors.
Premium Increases and Market Variability
Between 2021 and 2024, the average homeowners insurance premium in Connecticut rose by 16% to just over $2,500 for $350,000 in replacement coverage. Premiums vary significantly across different locations and carriers. For instance, quotes for $300,000 in coverage ranged from $1,370 to $6,430 in Stamford and from $1,290 to $4,780 in Manchester.
Support for Homeowners
Homeowners facing non-renewal can seek assistance from the Connecticut Insurance Department or turn to insurance agents to find coverage in the surplus lines market, though this often comes at higher rates. Connecticut’s Fair Plan serves as a last-resort option for those unable to secure coverage through traditional means. As of the latest available data, Fair Plan policy counts had been declining, dropping below 1,200 members between 2018 and 2022.
The situation in Connecticut, while concerning, is not as dire as in states like Florida, where premiums have skyrocketed and some property owners have been forced to go without coverage. Nonetheless, the trend of increasing non-renewals and rising premiums presents a significant challenge for homeowners across the state.
