By Staff Reporter
The US homeowners are grappling with soaring insurance premiums, now the highest among surveyed nations, as rising rebuild costs compound financial pressure. The recent tariffs on imported construction materials—especially from China—threaten to further inflate costs, prompting insurers to reassess pricing strategies. With affordability and coverage adequacy at risk, the industry faces a critical juncture demanding innovation and resilience in navigating regulatory and economic headwinds, says GlobalData, a leading data and analytics company.
GlobalData’s 2024 Emerging Trends Insurance Consumer Survey* highlights the existing burden on US consumers: 55.8% pay over $1,000 annually for home insurance, compared to just 14.6% of UK consumers paying over GBP750 (approximately $986). With US premiums already outpacing those in other surveyed countries, the tariff-induced rise in construction costs is poised to widen this gap.
The recent tariffs implemented by President Trump sent shockwaves around the globe, with all countries being on the receiving end of a 10% baseline tariff to imports, with China hit with a 34% tariff to add to the 20% announced in March 2025, taking its new total to 54%.
Mexico and Canada are exempt from this round of tariffs but still face a 25% tariff on non-USMCA goods including steel and aluminum, making rebuild costs more expensive and contributing to rising insurance premiums.
Meanwhile, the tariffs on China will be particularly impactful given it is a source of various raw materials and components. The US relies heavily on Canada, Mexico, and China for key construction materials such as lumber and steel
Sahil Haider, Associate Insurance Analyst at GlobalData, comments: “Increasing repair expenses will compel insurers to revise their pricing strategies, leading many consumers to experience additional hikes in their premiums. To support consumers during these uncertain times, insurers can offer policies that adjust to the price of materials to ensure policyholders have suitable coverage”
The ripple effect of higher tariffs will be felt across the entire home insurance ecosystem. Homeowners, insurers, and property developers will all need to adapt to escalating expenses.
Haider concludes: “For insurers, maintaining customer loyalty in a competitive landscape will necessitate the development of innovative pricing strategies and cost-effective solutions to alleviate the financial burdens resulting from these policy adjustments.”
*GlobalData’s Emerging Trends Insurance Consumer Survey featured a panel of consumers aged 18+, with 5,520 respondents spread across 11 countries in different regions to identify global trends. There was a minimum of 500 respondents per country. It is GlobalData’s first-ever dedicated multi-market insurance consumer survey.
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