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

Last Updated: 9/17/26

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 in some states 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 

• As of August 2026, the overall average tariff rate was 11.0% and scheduled to increase to 11.8% by the end of 2026. Under Trump, Americans have seen sharply higher tariffs, peaking at an overall average tariff rate of 28% in April 2025 that was the highest since 1901.
  • Trump imposed 50% tariffs on construction materials like steel, aluminum, and copper, which will likely be passed on to consumers through higher home insurance premiums. 
• Insurance experts warned that tariffs on construction materials alone would add $106 to annual insurance premiums on average nationally.
  • In 2025, tariffs were expected to increase home insurance costs 38% faster by year’s end.
• Homeowners in some states were projected to 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 MAKE IT MORE EXPENSIVE TO REBUILD AFTER A DISASTER

• Trump’s tariffs are expected to 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 higher tariffs on lumber, steel, kitchen cabinets, electronics, and other products and materials needed to rebuild homes after disasters.
  • 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, in January 2027.
  • Brookings calculated that Trump’s tariffs will add roughly $30 billion to the costs of residential construction.