FACT SHEET: Trump’s Tariffs Will Raise Home Insurance Costs

Last Updated: 1/2026

Trump’s reckless tariffs are fueling a home insurance crisis that is putting the dream of homeownership further out of reach for many Americans. Tariffs will accelerate insurance rate hikes, potentially raising premiums by more than $400, and will raise the cost of rebuilding after a disaster. Trump and his Republican allies in Congress are worsening the affordability crisis across the board – and home insurance is no exception.

TRUMP’S TARIFFS WILL ACCELERATE HOME INSURANCE PREMIUM HIKES 

• Under Trump, Americans have seen an overall average tariff rate of 16.8%, the highest since 1935.
  • Trump imposed tariffs of 50% on materials used in construction, like steel, aluminum, and copper, which will likely be passed on to consumers through higher home insurance premiums. 
• Trump’s tariffs could increase home insurance costs 38% faster by the end of 2025, and tariffs on construction materials alone are expected to increase annual premiums by more than $100 by the end of the year.
  • Homeowners in some states could see their premiums increase by more than $400 due to Trump’s tariffs.
• Trump’s tariffs have increased the cost of consumer goods, raising costs for insurers paying claims for the contents of homes that are damaged or destroyed.

TRUMP’S TARIFFS WILL MAKE IT MORE EXPENSIVE TO REBUILD AFTER A DISASTER

• Trump’s tariffs are expected to both slow down and increase the cost of disaster recovery efforts.
  • The National Association of Home Builders estimated a cost increase of $10,900 per home due to Trump’s tariffs on construction materials.
• Trump imposed new or elevated tariffs on lumber, steel, kitchen cabinets, and other products and materials needed for home construction.
  • Tariffs on some products used in residential construction, like upholstered furniture and kitchen cabinets, were scheduled to rise even further to 30% and 50%, respectively.
  • Brookings calculated that Trump’s tariffs will add roughly $30 billion to the cost of residential construction.