Trump's tariffs on construction materials expected to raise home insurance costs

From Yahoo Finance: 2025-04-07 07:04:00

A GlobalData survey found that US consumers pay the highest home insurance premiums globally. President Trump’s new tariffs on imported construction materials are set to increase rebuild costs, driving premiums even higher. The US already pays more for home insurance than other countries, and the tariffs will exacerbate this trend.

The tariffs, introduced in April 2025, include a 10% baseline tariff on imports from all countries, with additional tariffs on China, Mexico, and Canada. These countries supply key construction materials like lumber and steel. The new tariffs are expected to raise rebuild expenses, impacting home insurance premiums directly.

The increased cost of important construction materials like steel, aluminium, lumber, and concrete will impact insurers’ claim payouts and profitability. This could lead to higher premiums for policyholders. Rising material costs may also result in higher property valuations, leaving many underinsured. Insurers can offer policies that adjust to material prices to ensure adequate coverage for policyholders.



Read more at Yahoo Finance: Trump tariffs set to raise home insurance costs as construction materials affected