Homeowners blindsided by new policy that could make insurance unaffordable: 'Too many people are forced to choose'

The insurance industry has already struggled to keep up with catastrophic loss claims following increases in extreme weather events. 

Now, Trump administration tariffs are increasing insurance companies' costs and possibly making homeowners insurance even more unaffordable in America. 

What's happening?

As CleanTechnica reported, the insurance industry is predicting greater future losses and higher insurance costs. 

The U.S. government has imposed tariffs that impact building materials. These tariffs increase the cost of repairs and replacements, which leads to higher insurance premiums. 

Insurance companies charge higher premiums to compensate for spending more on construction materials including steel, aluminum, lumber, and gypsum. Meanwhile, the tariffs are disrupting global supply chains, causing delays in getting materials on time. 

Builders frequently source raw materials from multiple countries that are affected by the tariffs. More expensive materials can lead to higher labor costs when contractors also charge more to cover their cost increases. 

Why are tariffs and homeowners insurance important?

Insuring a home is becoming increasingly difficult and unaffordable in the United States. 

Human activity, such as the burning dirty fuels, has led to the overheating of the planet. While extreme weather events are a natural occurrence, the climate crisis supercharges these events, making them more dangerous and destructive — and causing insurance rates to rise and insurance companies to drop coverage in high-risk areas.

"Too many people are forced to choose between paying more for the same insurance, accepting lesser coverage to keep premiums manageable, or letting their insurance lapse," Scott St. George wrote in Nature.

Insurance companies paid over $140 billion in natural disaster claims last year, the fifth consecutive year with losses of more than $100 billion. Some insurance providers are leaving state insurance markets entirely because of the risks and rising costs. 

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At the same time, U.S. tariff rates are at their highest levels since the 1940s, including 25% tariffs on Canada and Mexico. Combined, these factors create a devastating situation for homeowners looking to protect their homes and rebuild after harsh storms.

What's being done to protect vulnerable homeowners?

Extreme storms resulting from climate shifts have largely been to blame for homeowners' insurance spikes. Now, tariffs are in the mix to exacerbate the issue. 

Surveys show that Americans blame insurance companies for rising costs and the government for not doing enough to protect them. Homeowners feel like they're on their own to deal with home damage caused by tornadoes, wildfires, hurricanes, and other extreme weather. 

Fortunately, there are measures you can take as an individual to prepare your home as much as possible before storms strike. 

Educate yourself about critical climate issues, weatherize your house, and use sustainable building materials. You can also take matters into your own hands with disaster-resistant housing options such as the Q Cabin. 

These measures provide storm protection and peace of mind with the increasing severity of dangerous weather. Though the future of the homeowners insurance industry is uncertain, taking proactive steps with your own home is something you can control. 

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