Insurance policies are supposed to protect homeowners from unexpected bills. But tariffs and increasing frequencies of natural disasters make annual premiums rise unexpectedly. – Marketwatch/Istockphoto Photo Picture
From home builders to homeowners, every corner of the housing market is likely to feel the tariff pinch.
The Trump Administration's global tariffs on imported goods could cost an additional $ 106 for American homeowners in home insurance premiums this year forecast Through Insurance-Insurance Insurify.
Tariffs push up input costs. If fully implemented, the administration's import duties are likely to increase the cost of building materials, which in turn would increase insurance rates across the US
About 7% of building materials used in the construction of home are imported from abroad, according to analysis by the National Home Builders Association, Trade Group. Builders already expect the tariffs to add nearly $ 11,000 in additional costs per home.
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When materials cost more, the overall cost of repairing damage caused to property also increases. Insurance companies will have to pay their policy holders more; They are also expected to transfer those costs to their customers in the form of higher premiums, according to the Insurance Information InstituteIndustry group.
Home insurance costs have been rising in recent yearsRegardless of the tariffs. Without tariffs, an average houseowner insurance premium was expected to increase to $ 3,520 by the end of 2025, up from $ 3,259 in 2024, according to Insurify.
If Trump tariffs are fully implemented, home insurance premiums are expected to increase an additional $ 106, the company said, a total of $ 3,626 in 2025.
The highest increases, based on the current projections for each state, would be felt by homeowners in Florida. People who own property in the state could see an additional increase in premiums of up to $ 464 because of the tariffs, Insurify said. Similarly, Louisiana homeowners could see an increase of $ 418 in homeowners' insurance premiums due to the tariffs, which are also at the higher end.
The lowest increase in premiums would be felt by homeowners in Vermont. The state was already the lowest in terms of the average homeowners' insurance costs and would see a lower $ 37 increase caused by tariff, Insurify said.
Insurance premiums affect homeowners, of course, but potential home buyers should also keep an eye on insurance costs as they hunt for a house.
Personal finance experts advise that home buyers are a factor in insurance and other so -called fantasy costs when they budget for the purchase of a property. Phantom costs include property taxes, utility and maintenance costs; Many of these ongoing costs of ownership have been increasing in recent years.
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House hunters also see the impact of tariffs in the form of volatile mortgage rates. Rates bounce around as the financial markets seek to assess the state of the US economy, the possibility of a recession and whether the Federal Fund will alleviate monetary policy. The mortgage rose a fixed rate 30 years 11 base points on Monday to 6.98%, according to Mortgage news every day. The leap higher on the heels of the 30 year rate decreased 21 base points between April 14 and April 16.
To be sure, it is not just tariffs that could charge homeowners' insurance premiums in general, Holden Lewis, a home and mortgage expert at the Nerdwallet Personal Finance site, told Marketwatch.
“Higher tariffs and duties could have a slight increase in prices for lumber and equipment… (a) These higher costs could drive home insurance premiums slightly higher,” said Lewis.
But “Most of the increase in insurance premiums comes from the impact of fierce storms driven by climate change,” he added.
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