As the effects of the White House’s tariff policies start to take clearer shape, many homebuyers and homeowners are expecting to see the price of construction, renovation and furniture increase.
But they should also be prepared to pay even more for their homeowners insurance, according to a new analysis by Insurify, an insurance comparison website and marketplace.
A study comparing the growth in insurance premium costs with and without tariffs suggested that on average, homeowners could see their premiums rise $106 this year, from $3,530 to $3,626.
That’s up from 2024, when the average annual cost was $3,259, according to the study.
The increase is predicted as the White House weighs the implementation of sweeping taxes on goods imported to the United States. As of April 9, President Donald Trump paused some of the heftiest of those tariffs, instead upholding a 10% universal baseline tax for trading partners for 90 days. Even with that pause, though, the administration is still navigating a raging trade war with China.
All told, the analysis found that the tariffs “could increase home insurance costs 38% faster by the end of 2025, from an 8% year-over-year cost increase to an 11% cost increase.”
Trump has said the tariffs are a solution to the trade deficit between the U.S. and its trading partners that he described as an “unusual and extraordinary threat to the national security and economy” of the country. The taxes seek to reinvigorate the manufacturing industry in the U.S. and incentivize consumers to purchase U.S.-made products, among other benefits named by the administration.
Florida and Louisiana would see the biggest hikes
As the housing industry has braced for the effects of those tariffs, industry experts have predicted rising costs, especially when it comes to building materials.
For example, according to the National Association of Home Builders, it will cost about $10,900 more to build a new house amid those tariffs.
That also means that for an insurer to repair or replace part of a home, costs will be higher. Insurify experts said that cost will likely be passed on to consumers, driving their premiums higher.
In that case, Florida would see a $464 projected annual cost increase attributable to the tariffs, the largest of any state. Louisianans would pay $418 more, Oklahomans would face an extra $251, and homeowners in Colorado and Texas would owe roughly $200 more.
Some states would see minimal changes, though. In Vermont, for example, that increase would be less than $40. In Alaska and New Hampshire, it would be under $50.