Many Connecticut homeowners are seeing premium increases of 10% or more on their renewal notices this fall. If you are asking why home insurance costs are rising in Connecticut, you are not alone. National economic pressures and local risk factors are changing how insurers set rates across the state.
This article covers why rates are rising, how it affects Connecticut homeowners, and steps you can take to control your costs.
What’s Driving the Increase in Home Insurance Rates?
Three primary factors are driving premiums higher nationwide. Connecticut faces the same challenges.
Rising Construction Costs
Repair and replacement costs have climbed. Since 2020, construction materials have become much more expensive. Lumber prices remain volatile. Roofing materials, copper piping, and appliances all cost more than before. There is a shortage of skilled labor, pushing contractor rates higher. A roof replacement that once cost $15,000 now often costs $25,000 or more.
Reinsurance Costs
Insurance companies buy insurance themselves, called reinsurance, to protect against major disasters. After years of billion-dollar events — hurricanes, wildfires, severe storms — reinsurers have raised their prices. These higher costs are partially passed on to policyholders. Therefore, Connecticut rates may rise, even without a disaster, due to reinsurance costs from events in other states.
Weather Events
Weather claims are now more frequent and severe, with coastal storm surge, heavier rainfall, and ice storms posing risks to homes. According to NOAA National Centers for Environmental Information research, the United States has averaged about nine billion-dollar weather and climate disasters per year from 1980 through 2024 (CPI-adjusted). Over just the most recent five years (2020–2024), that average has risen to about 23 events per year.
How Inflation & Reinsurance Affect Connecticut Homeowners
The connection between global reinsurance markets and your Connecticut premium happens quietly, but its consequences are direct and measurable. When hurricanes devastate Louisiana or wildfires consume California subdivisions, reinsurers pay out billions of dollars.
To stay afloat, reinsurers recoup those losses by raising rates on every insurance company they cover — including carriers operating in New England. Connecticut faces added pressure from several local factors.
- Extensive coastal exposure: Many homes face risks of storm surge and wind damage, which can lead to higher premiums.
- Aging housing stock: Older homes often use materials and construction methods that are expensive to repair or replace. Historic homes with plaster walls and custom woodwork require skilled labor, which is more costly.
- Outdated coverage estimates: Replacement cost estimates from three years ago may now be too low. A home valued at $400,000 could cost $550,000 to rebuild today.
What Homeowners Can Do To Control Insurance Costs
You may not be able to avoid rate increases, but you can take steps to mitigate your final premium increase.
Review & Update Coverage Limits
Confirm that your dwelling coverage reflects current replacement costs, not your home’s market value or purchase price. Request a replacement cost estimate from your agent that accounts for today’s construction prices. This step might initially increase your premium, but it prevents a catastrophic financial shortfall should you experience a loss.
Bundle Policies
Combining homeowners, auto and umbrella insurance with the same carrier typically yields discounts ranging from 15% to 25%. These multi-policy savings can offset rate increases, avoid coverage gaps and simplify your coverage management.
Invest in risk reduction. Many insurers offer premium credits for certain upgrades:
- Storm shutters that protect windows during high winds
- Sump pumps with battery backup to prevent basement flooding
- Smart home systems that detect water leaks, monitor temperature, smoke or burglar intrusion.
- Impact-resistant roofing shingles
Consider a Higher Deductible
Raising your deductible to $2,500. or $5,000. can sometimes result in a 10% to 15% reduction in your premium. First be sure you can afford the higher out-of-pocket costs if you need to file a claim, by evaluating or creating an emergency fund. Statistically, a small claim is as important as a large claim, so not turning in small claims and only turning in larger property damage claims also keep your premiums lower.
Ask About Discounts
Some carriers offer claims-free discounts that reward homeowners who haven’t filed claims over a specified period. Loyalty discounts apply to long-term customers. Some carriers offer retiree discounts or credits for homes with security systems.
Preparing Your Home and Budget for Winter
November is the right time to review your coverage and prepare your property before winter. Focus on these key areas:
- Roof integrity: Look for missing, cracked, or curling shingles that could fail under the weight of snow or ice.
- Gutter maintenance: Clear gutters and downspouts to prevent ice dams that can cause water to accumulate under your roof
- Pipe protection: Inspect exposed pipes in unheated spaces. Pipe insulation is inexpensive and can prevent burst pipes, which can cause damage ranging from $5,000 to $250,000 or more.
- Heating system service: A professional inspection costs $100 to $200, but it can identify failing components before they cause a breakdown or puff back during a cold snap.
Preventive maintenance protects your home and demonstrates to insurers that you manage risk effectively. One water damage claim from a frozen pipe can result in higher rates for years.
Partner With a Local Expert Before Renewal Season
Home insurance rate increases result from complex economic forces that extend far beyond the control of any individual homeowner. What you can control is how you respond. The difference between accepting your renewal at face value and actively managing your coverage can mean hundreds of dollars in annual savings.
At Brooks, Todd & McNeil, our team is ready to discuss your coverage and explore ways to keep your home insurance affordable this winter. Contact us today for Connecticut-specific recommendations.
About Brooks, Todd & McNeil
Since 1839, the independent agents at Brooks, Todd & McNeil have been pleased to offer our community several types of different policies from a variety of providers. To learn more about our products and services, contact us today at (800) 448-4567.