Homeowners in Florida are facing the biggest extra cost
April 25, 2025
Key takeaways:
- Tariffs are expected to hike the cost of home insurance even more.
- Homeowners inFlorida, Louisiana and Oklahoma are facing some of the biggest extra charges.
- Extra home insurance costs from tariffs would arrive when homeowners are already struggling with premiums.
The trade war is spilling into many aspects of American lives, including how much home insurance costs.
Tariffs, which are taxes on imported goods, boosthome insurance costs largely because they are making construction materials for repairs, such as wood and drywall, more expensive.
The higher construction costs from tariffs could raise home insurance costs 38% faster in the U.S., according to an analysis from insurance comparison website Insurify.
“Insurance companies are likely to pass this risk on to homeowners by charging higher premiums,” Insurify said.
In dollars, home insurance premiums would rise $106 more in 2025 than earlierestimates, Insurify said.
Home insurance covers monetary losses from unexpected events, including a burst pipe, hailstorm, fire or hurricane, but it generally doesn’t cover flooding that homeowners living in Federal Emergency Management Agency-designated (FEMA) areas have to pay for.
Some states are facing hikes in home insurance premiums that are much higher than the U.S. average.
Tariffs are expected to add the most to home insurance premiumsin Florida, with an extra $464 on average, followed by Louisiana ($418), Oklahoma ($251), Colorado ($199) and Texas ($196).
On the other hand, Vermont is expected to have the smallest extra cost, with $37more charged on average, followed by Alaska ($46), New Hampshire ($48), Maine ($51) and Delaware ($51).
The threat of tariffs raising home insurance costscomes at a time when homeowners are already struggling with rising premiums.
Insurers have been charging more for home insurance after natural disasters have become more frequent and costly.
Home insurance is now pricier nearly everywhere: There were only 191 counties among 3,116 where annual homeowner insurance premiums fell in 2024 compared with 2021, according to a study from nonprofit Consumer Federation of America.
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