Connecticut Homeowners Face Rising Insurance Non-Renewals Amid Cost Pressures
In 2023, approximately 14,400 homeowners in Connecticut experienced non-renewal of their property insurance policies, marking a 45% increase from 2022. This rise aligns with a broader national trend where insurers opt not to renew policies due to concerns over escalating catastrophic weather events and the associated financial risks, even when charging higher premiums to build reserves.
Connecticut’s situation remains less critical compared to states like Florida, where non-renewals and soaring premiums have left some property owners unable to secure coverage. However, the state faces additional pressure from increasing claims costs tied to tariff-related price increases on auto and home repair materials, a consequence of recent U.S. government tariff policies.
Travelers Insurance highlighted that tariff escalations have had a limited impact on their claims costs, primarily affecting private passenger auto insurance more than property damage claims. The company announced adjustments in homeowners coverage limits to reflect rising repair costs, especially roofing, which has been a focus due to roof conditions contributing to non-renewals.
State Farm, the leading U.S. homeowners insurer by market share, also reported inflation and supplier-related challenges driving up home repair expenses. The Connecticut Department of Insurance has observed multiple carriers refraining from policy renewals specifically due to concerns over roof conditions and potential related losses.
Additionally, tariff wars are influencing insurers beyond claims expenses by affecting their investment portfolios, which are crucial for profitability. A.M. Best noted that fluctuations in stock and bond values could increase insurers’ caution in underwriting higher-risk policies.
From 2021 to 2024, the average homeowners insurance premium in Connecticut increased by 16%, reaching over $2,500 annually for $350,000 in coverage. This premium inflation ranks Connecticut 30th nationally, positioned between New York, Massachusetts, and states like Rhode Island and New Jersey.
Homeowners insurance quotes can vary significantly within Connecticut, with examples in Stamford and Manchester showing annual premiums ranging from approximately $1,290 to over $6,000 depending on coverage and carrier. This variability reflects the competitive yet complex landscape of property insurance underwriting in the state.
Connecticut insurance law mandates a 60-day notice period before non-renewal if increased property risk is identified due to factors like insufficient maintenance or risk-enhancing additions such as swimming pools. The 14,400 non-renewals in 2023 represent more than 1.1% of the state’s homeowners policies.
Nationally, southern New England counties, including Connecticut’s Fairfield, New Haven, and Litchfield Counties, have seen notable increases in non-renewal rates. Fairfield and New Haven Counties were ranked among the top 100 nationally for homeowners dropped by insurers, indicating a regional concern beyond just coastal zones.
Despite the increased non-renewals, Connecticut’s competitive insurance market allows homeowners to shop for better rates and alternative coverage options. The state’s Insurance Department recorded about 35 non-renewal complaints in early 2025, consistent with prior periods, and intervened to rescind renewals in a limited number of cases.
Options for displaced homeowners include surplus lines markets, which carry higher premiums but accept higher-risk policies, and the Connecticut Fair Plan, a last-resort insurance option for those unable to find coverage elsewhere. The Fair Plan’s enrollment has decreased steadily since 2018, indicating some improvement or shifts in market dynamics.
Overall, Connecticut’s property insurance market reflects national pressures from increased climate-related risks, material cost inflation, and regulatory oversight, influencing both policy availability and premiums. Insurers continue to adjust underwriting standards and pricing strategies in response to evolving risk profiles and economic conditions.