Tariffs aren’t just increasing the cost of goods we buy. They’re also driving up the cost of services like homeowners insurance.
Matt Brannon, data journalist for Insurify, says tariffs are going to increase the cost of construction materials, which means it will cost more for insurance companies to rebuild.
He says it’s only a matter of time before insurance companies pass those costs onto consumers.
“Basically, before tariffs were imposed, we expected homeowners insurance costs to rise about 8% this year,” says Brannon. “And now with tariffs we expect that cost to rise about 11% this year.”
He continues, “So in other words, due to tariffs we expect homeownership costs to rise 38% faster than they otherwise would.”
Brannon says the National Association of Homebuilders is reporting 60% of their suppliers have already raised prices for construction materials due to tariffs.
While policy holders probably won’t see rate hikes immediately, Brannon says it could start happening by the end of the year.
So is there any way for you to save on your policy?
“The easiest thing you can do is compare your coverage and get quotes from multiple providers, that way you can figure out if you can get better coverage from another company that you aren’t using already,” Brannon says. “You can also, if you don’t feel like changing companies, you can check with your current insurer to find out if they will offer incentives for fortifying a home against extreme weather.”
He continues, “It doesn’t happen with all companies, but sometimes there will be some incentives to encourage you to make your home a little bit more safer, which could result in lower premiums.”
Brannon’s final tip is raising your deductible.
While raising your deductible could leave you paying more in the event you have to file a claim, it will likely lower the cost of your monthly premium.