Tariffs could raise your home insurance premium—here’s why, and what you can do about it
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If you’re a homeowner, you may want to keep an eye on your next insurance bill.
Premiums are rising again this year—but it’s not just inflation or storm damage driving the spike.
A new report shows that something else, less obvious, could be quietly adding over $100 to your annual costs.
For older Americans already navigating rising prices on everything from groceries to gas, even a small jump in housing costs can feel like a real strain.
So what’s behind this latest increase—and what can you do to stay ahead of it?
At the center of this issue are new tariffs—taxes on imported goods—recently introduced by the US government.
These tariffs target products like Canadian lumber and Mexican building materials such as lime and gypsum.
While the goal is to support American manufacturers, these tariffs also increase the cost of essential construction supplies.
As a result, rebuilding and repair costs are rising.
And when those costs go up, so do the claims insurers have to pay—meaning homeowners end up footing the bill in the form of higher premiums.
Financial advisor Drew Powers explains it simply: “If the increase in tariffs hold, then homebuilding materials we import will cost more. If materials cost more, then repairs cost more. If repairs cost more, insurance companies pay more per claim. If claims cost more, the offsetting premiums charged to homeowners cost more. It really is that simple.”
According to Insurify, the average home insurance premium could hit $3,626 by the end of this year—an increase of $106 from last year.
And the trend isn’t slowing down.
The report also projects that home insurance costs may rise 38% faster by the end of 2025.
As prices rise across the board—from groceries to gas—it’s no surprise that home insurance is also being affected.
But these increases may hit seniors especially hard, as many are working with fixed incomes and tighter budgets.
Higher construction costs also mean higher replacement values, which insurers factor into your policy.
So even if you haven’t made any changes to your home, your premium may go up simply because materials are now more expensive to replace in case of damage.
Rising premiums are just one part of the larger economic picture.
Kevin Thompson, CEO of 9i Capital Group, notes that increasing costs could make it harder for people to buy or sell homes: “Long term, this dynamic can make homeownership less affordable, potentially sidelining buyers and keeping sellers locked in their current homes.”
When fewer people can afford to move, it slows down the housing market—and may limit options for retirees looking to downsize or relocate.
If your home insurance premium has gone up—or you’re concerned it might—here are a few simple steps to consider:
We can’t control tariffs or trade policy—but we can take steps to protect our homes and our wallets. Rising insurance costs are frustrating, but with a little planning and a few smart choices, you can reduce the impact on your household budget.
Stay informed, ask questions, and remember—you’re not alone in navigating these changes.
Read next: Well-known retailer quietly halts overseas shipments as surprising new rules hit online shoppers
We’d love to hear your experience. Have you seen a noticeable change in your insurance costs this year? Are you planning repairs or renovations and finding prices going up? Share your story in the comments—your tips might help others in our community better prepare.
Premiums are rising again this year—but it’s not just inflation or storm damage driving the spike.
A new report shows that something else, less obvious, could be quietly adding over $100 to your annual costs.
For older Americans already navigating rising prices on everything from groceries to gas, even a small jump in housing costs can feel like a real strain.
So what’s behind this latest increase—and what can you do to stay ahead of it?
Rising home insurance premiums are putting added pressure on homeowners—especially those living on fixed incomes. Image Source: Pexels / Jakub Zerdzicki.
Also read: Slash your grocery bill now: 5 smart swaps to outsmart rising tariff costs!
What’s behind the higher premiums?
At the center of this issue are new tariffs—taxes on imported goods—recently introduced by the US government.
These tariffs target products like Canadian lumber and Mexican building materials such as lime and gypsum.
While the goal is to support American manufacturers, these tariffs also increase the cost of essential construction supplies.
As a result, rebuilding and repair costs are rising.
And when those costs go up, so do the claims insurers have to pay—meaning homeowners end up footing the bill in the form of higher premiums.
Financial advisor Drew Powers explains it simply: “If the increase in tariffs hold, then homebuilding materials we import will cost more. If materials cost more, then repairs cost more. If repairs cost more, insurance companies pay more per claim. If claims cost more, the offsetting premiums charged to homeowners cost more. It really is that simple.”
Also read: The economy is flashing warning signs—and Trump’s tariff policy may be to blame
How much more could you be paying?
According to Insurify, the average home insurance premium could hit $3,626 by the end of this year—an increase of $106 from last year.
And the trend isn’t slowing down.
The report also projects that home insurance costs may rise 38% faster by the end of 2025.
Why this matters for older homeowners
As prices rise across the board—from groceries to gas—it’s no surprise that home insurance is also being affected.
But these increases may hit seniors especially hard, as many are working with fixed incomes and tighter budgets.
Higher construction costs also mean higher replacement values, which insurers factor into your policy.
So even if you haven’t made any changes to your home, your premium may go up simply because materials are now more expensive to replace in case of damage.
Also read: SNL cold open features Trump parody addressing tariff reversal and economic fallout
A ripple effect on the housing market
Rising premiums are just one part of the larger economic picture.
Kevin Thompson, CEO of 9i Capital Group, notes that increasing costs could make it harder for people to buy or sell homes: “Long term, this dynamic can make homeownership less affordable, potentially sidelining buyers and keeping sellers locked in their current homes.”
When fewer people can afford to move, it slows down the housing market—and may limit options for retirees looking to downsize or relocate.
Also read: The resurgence of American manufacturing: How tariffs are bringing jobs back home
What can you do to keep costs in check?
If your home insurance premium has gone up—or you’re concerned it might—here are a few simple steps to consider:
- Shop around – Don’t settle for your current provider’s renewal quote. Comparing rates can often lead to savings.
- Review your coverage – Make sure you’re not over-insured or paying for coverage you no longer need.
- Ask about discounts – You might qualify for discounts based on age, bundling with auto insurance, or adding home safety features.
- Adjust your deductible – A higher deductible can lower your premium, but only if you’re comfortable covering the cost out of pocket in case of a claim.
- Stay informed – Keep up with trends in building costs and insurance. The more you know, the more proactive you can be.
We can’t control tariffs or trade policy—but we can take steps to protect our homes and our wallets. Rising insurance costs are frustrating, but with a little planning and a few smart choices, you can reduce the impact on your household budget.
Stay informed, ask questions, and remember—you’re not alone in navigating these changes.
Read next: Well-known retailer quietly halts overseas shipments as surprising new rules hit online shoppers
We’d love to hear your experience. Have you seen a noticeable change in your insurance costs this year? Are you planning repairs or renovations and finding prices going up? Share your story in the comments—your tips might help others in our community better prepare.
