FACT SHEET: Trump Is Raising Home Insurance Costs

Last Updated: 12/4/25

Trump’s cost-raising agenda is impacting every facet of Americans’ lives, including the cost of homeownership. Trump’s tariffs, cuts to disaster relief and mitigation programs, and cuts to the National Oceanic and Atmospheric Administration will drive up home insurance premiums. Some Americans will see their premiums increase by more than $400 due to tariffs alone. Trump is making it even more expensive to own a home, putting the American dream out of reach for many. 

Trump’s Tariffs Will Accelerate Home Insurance Premium Hikes And Make It More Expensive To Rebuild After A Disaster

• Trump’s tariffs could increase home insurance costs 38% faster by the end of 2025, and tariffs on construction materials are expected to increase annual premiums by more than $100 by the end of the year.
  • Some states could see their premiums increase by more than $400 due to Trump’s tariffs.
• Tariffs were expected to slow down disaster recovery efforts and make them more expensive.
  • The National Association of Home Builders estimates a cost increase of $10,900 per home due to tariffs on construction materials.

Trump’s Cuts To Disaster Relief And Mitigation Programs Will Lead To Higher Home Insurance Premiums

• In January 2025, Trump suggested he would disband FEMA, which would leave Americans stranded after natural disasters, as municipalities and states are unable to pick up the tab.
  • The Trump administration has also cut disaster relief at the Department of Housing and Urban Development, which provides funding for local governments, states, and Native American tribes to rebuild after extreme weather disasters.
  • Robert Gordon, senior vice president at the American Property Casualty Insurance Association, warned, “Homeowners insurance will also be impacted if the government reduces support for pre-disaster mitigation and post-disaster response.”
• Trump eliminated a FEMA program that funds resiliency improvements to help communities survive floods. Without such measures, local and state governments and homeowners will see higher insurance rates to offset increased risk.
• FEMA also administers the National Flood Insurance Program (NFIP), which provides coverage for more than 4.7 million homeowners who otherwise could not obtain coverage.
  • Private insurers are unable to absorb costs related to the NFIP and keep premiums low because the NFIP “underprices” its coverage. 

Trump’s Cuts To NOAA Make It Harder For Insurers To Assess Risk And Set Premiums Accurately

• Trump’s budget cuts and layoffs at the National Oceanic and Atmospheric Administration (NOAA) will affect the quality of data that insurers rely on to assess risk and set premiums, hindering their ability to set prices accurately.
  • Under Trump, NOAA has stopped updating its database tracking climate disasters that cause billions of dollars in damage, which was a “staple for the insurance and reinsurance industries.” 
  • Without NOAA’s climate data, insurance companies will likely raise premiums further or pull out of high-risk areas altogether. 
  • The president of the Reinsurance Association of America said that NOAA’s climate disaster database gets “the public and public officials to embrace resilience,” and when individuals work to protect their property, that can help “keep insurance premiums down.”
  • The chief underwriting officer at insurance provider Kettle warned that without NOAA’s climate data, companies would have to pay for private data and invest more in in-house expertise to analyze it. Those additional costs would get passed on to policyholders.