Newsweek: Home Insurance Costs Could Soar Amid Trump Tariffs
FOR IMMEDIATE RELEASE
April 29, 2025
Contact: contact@insurancefairnessproject.com
Newsweek: Home Insurance Costs Could Soar Amid Trump Tariffs
Premiums Could Rise 38% Faster Than Expected
A new study from Insurify, reported by Newsweek today, reveals that President Trump’s proposed tariffs could cause property insurance premiums to rise 38% faster than expected. National average premiums are projected to rise to $3,626 in the coming months, $106 more than it would have without tariffs.
The study notes that insurance premiums are tied to the cost of building materials: “Tariffs have raised those costs, making repairing or replacing a home more expensive and, consequently, driving up the cost of claims that insurers must cover. Insurance companies are likely to pass this risk on to homeowners by charging higher premiums.”
“The home insurance crisis is already hitting families hard across the country, and tariffs will make insurance even more expensive,” said TJ Helmstetter, spokesperson for the Insurance Fairness Project. “A majority of voters say the government is not doing enough to address this crisis, and it’s no wonder why. It’s not fair to expect homeowners and business owners to bear the cost of ever increasing weather disasters on their own.”
Insurify’s data scientists project that tariffs will escalate the rise in costs from an 8% year-over-year increase to an 11% increase. Insurify also broke down how tariffs would raise costs in each state. Here are how some of the hardest-hit places will be impacted:
Florida: Tariffs would add $464 to the state’s average premium of $15,460.
Louisiana: Tariffs would add $418 to the state’s average premium of $13,937.
Oklahoma: Tariffs would add $251 to the state’s average premium of $8,369.
Colorado: Tariffs would add $199 to the state’s average premium of $6,630.
Texas: Tariffs would add $196 to the state’s average premium of $6,522.
“If the tariffs become entrenched, then their added costs will have to be passed on to the consumer through higher premiums,” said David Marlett, professor of insurance at Appalachian State University.
National Polling
The Insurance Fairness Project’s recent poll found that insurance is top of mind for American voters keenly aware of their vulnerability:
78% of voters are at least somewhat concerned about rising property insurance prices, with 40% saying they are “very concerned”;
66% are concerned about increasing extreme weather events;
74% have either been personally impacted by extreme weather or know someone else who has;
A majority of voters think the federal government and state governments are doing too little to protect consumers and hold insurance companies accountable.
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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.
