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Navigating Rising Home Insurance Costs: A Guide for Nationwide Employees

Nationwide employees should consider how the interplay between tariffs, insurance premiums, and broader economic factors can significantly impact their long-term financial planning, particularly in the context of rising homeownership costs. – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement Group.

Nationwide employees must recognize that external factors like tariffs and climate change are reshaping the financial landscape of homeownership, making it essential to stay informed and adapt their strategies accordingly. – Kevin Landis, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

The impact of tariffs on construction materials and how they will likely increase homeowners' insurance premiums.
The projected regional variations in insurance premium hikes due to tariffs, with Florida and Louisiana seeing the largest increases.
The broader economic factors, including climate change, that contribute to rising home-insurance premiums beyond tariffs.

Tariffs on imported goods are poised to significantly affect both homeowners and home builders amidst the evolving landscape of U.S. housing and construction. Recent measures introduced by the Trump administration are set to potentially raise home insurance premiums for American homeowners, including those at Nationwide companies, by approximately $106 this year, as projected by the insurance comparison firm Insurify.

Construction materials, essential for both new constructions and repairs, are directly targeted by these tariffs. The National Association of Home Builders (NAHB) highlights that about 7% of building materials used in American homes are imported, presenting substantial financial consequences. The NAHB estimates that these tariffs could increase the cost of constructing new homes by nearly $11,000—a cost that might ultimately be passed on to homeowners through higher insurance rates.

The rise in material costs directly influences the cost of rebuilding and repairs—key factors insurance companies consider when setting premiums. Consequently, insurers are expected to raise their rates to cover the increased costs of more expensive repairs.

Despite the overall trend of rising home insurance rates, tariffs are set to push these costs even higher. According to Insurify's data, while the average home insurance premium was expected to rise from $3,259 in 2024 to $3,520 by 2025's end without tariff impacts, this figure is likely to increase further to an average of $3,626 with full tariff implementation.

Nationwide employees residing in Florida could see the most significant impact, with a potential additional increase of $464 in insurance premiums. Similarly, those in Louisiana might face a rise of $418, whereas in Vermont, known for its relatively affordable home insurance, the increase could be a more modest $37.

The broader economic implications, especially the volatility introduced in mortgage rates by these tariffs, also play a critical role in the housing market. For instance, the 30-year fixed-rate mortgage saw fluctuations, underscoring the continuous assessments of the U.S. economy by financial markets, including recession risks and potential federal policy shifts.

While external factors like climate change and increased storm frequency and severity are primary drivers of rising costs, tariffs on essential materials such as lumber and appliances exacerbate these challenges. This is further evidenced by a Treasury Department report, indicating that homeowners in climate-vulnerable areas incur higher insurance costs.

The interconnectedness of domestic economic policies and global trade conditions remains a critical factor for Nationwide employees to consider. Understanding these dynamics is important for managing the financial aspects of homeownership, particularly in an environment where insurance and market conditions are in flux.

Furthermore, tariffs might indirectly reduce home values, particularly in regions heavily reliant on imported building materials. This could affect the resale value and market appeal of new homes, important considerations for homeowners planning to sell in the near future. Adapting expectations and selling strategies in response to these market conditions is important for effective financial planning.

For Nationwide employees, staying informed and proactive about these developments is crucial to navigating the complexities of homeownership in a tariff-impacted economic landscape.

Articles you may find interesting:

Source:

1. Tariffs Could Push Up Homeowners Insurance Premiums. Morningstar, 23 Apr. 2025.

2. How is Climate Change Impacting Home Insurance Markets? Brookings Institution, Jan. 2025.

3. Price, Kiley. Tariffs Could Spike Rates in an Already Climate-Stressed Insurance Market. Inside Climate News, 8 Apr. 2025.

4. Tariffs Threaten to Push Insurance Costs Higher for US Households. Insurance Business Magazine, 9 Apr. 2025.

5. How Tariffs Impact the Home Building Industry. National Association of Home Builders (NAHB), Apr. 2025.

What are the unique benefits provided by the Nationwide Retirement Plan that differentiate it from other retirement plans? How does Nationwide Mutual Insurance Company ensure the plan meets the regulatory requirements while still addressing the needs of its employees?

Unique Benefits of Nationwide Retirement Plan: Nationwide’s Retirement Plan provides both a Final Average Pay (FAP) Benefit and an Account Balance Benefit, which allows flexibility for employees hired at different times. The plan is qualified under Section 401(a) of the Internal Revenue Code, ensuring compliance with federal tax laws. Nationwide ensures regulatory compliance while addressing employee needs through ongoing contributions, actuarial evaluations, and options like lifetime income for retirees and survivors.

How can employee participation in the Nationwide Retirement Plan impact their overall retirement savings strategy? What role does the defined benefit pension plan play in conjunction with Social Security and personal savings for employees of Nationwide Mutual Insurance Company?

Employee Participation Impact: Participation in the Nationwide Retirement Plan enhances employees' overall retirement savings strategy by integrating Social Security, personal savings, and the defined benefit plan. The FAP benefit, based on final average compensation, works alongside Social Security to offer a stable income, while the Account Balance Benefit adds flexibility in retirement income options.

What options do employees of Nationwide Mutual Insurance Company have when they retire before the age of 55, and how do these options compare to those available for employees who retire after reaching that age? What factors influence the choices employees make regarding timing and type of benefit commencement?

Retirement Options Before and After Age 55: Employees retiring before age 55 can start receiving their benefits immediately, but they face early retirement reductions. Those retiring after age 55 may choose from more benefit options like annuities and receive higher, less-reduced payments. The choice to retire before or after age 55 depends on factors like financial need and health, and affects the timing and size of the benefit commencement(Nationwide Mutual Insur…).

In what ways does the structure of the benefit formulasâ€”Final Average Pay (FAP) Benefit and Account Balance Benefitâ€”affect the retirement income of employees at Nationwide Mutual Insurance Company? What are the implications for employees considering different retirement timings?

Effect of Benefit Formulas on Income: The FAP Benefit is based on Final Average Pay and Social Security coordination, offering a larger benefit for those with higher incomes, while the Account Balance Benefit is based on accumulated contributions and interest. The timing of retirement plays a crucial role in determining income, as early retirement results in reduced benefits, while late retirement allows for continued service accrual and potentially higher payouts.

How does the Nationwide Mutual Insurance Company address spousal benefits under the retirement plan, particularly regarding the Qualified Preretirement Survivor Annuity (QPSA)? What are the actions that employees need to take to ensure their spouses receive these benefits?

Spousal Benefits and QPSA: Nationwide offers a Qualified Preretirement Survivor Annuity (QPSA) to ensure that a spouse receives benefits if the participant dies before retirement. Employees must name their spouse as a beneficiary or obtain notarized consent if they wish to designate someone else. To ensure the spouse receives the QPSA, employees must take the appropriate legal steps outlined in the plan.

What steps must employees of Nationwide Mutual Insurance Company take to successfully file a claim for retirement benefits, and what is the timeframe for processing these claims? How does the company ensure that employees understand their rights under the Employee Retirement Income Security Act (ERISA)?

Steps to File a Claim for Retirement Benefits: To file a claim, employees must notify the Nationwide Retirement Center at Fidelity and submit the required paperwork. Claims are typically processed within 60 days, and Nationwide ensures that employees understand their rights under ERISA through detailed communications and support from Fidelity Investments.

What are the situations that might cause delays or loss of benefits for employees retiring from Nationwide Mutual Insurance Company? How can employees proactively manage these risks to ensure they receive their entitled benefits?

Situations Leading to Delays or Loss of Benefits: Delays can occur if employees fail to submit necessary paperwork, keep their contact information updated, or if they are not vested at the time of severance. Employees should proactively manage these risks by completing forms timely and maintaining communication with the Plan Administrator to avoid disruptions in benefits.

Can employees at Nationwide Mutual Insurance Company alter their distribution choices after commencing their retirement benefits? What regulatory frameworks influence their ability to change benefit elections, and under what circumstances might these changes be permitted?

Changing Distribution Choices After Retirement: Once retirement benefits commence, changes to distribution elections are limited. For example, lump-sum payments and annuity selections are typically irrevocable after commencement, and spousal consent is required for certain changes. Federal regulations, such as IRS rules, further restrict post-retirement changes in benefit elections(Nationwide Mutual Insur…).

How does the Nationwide Mutual Insurance Company plan for automatic post-retirement benefit increases, and what factors determine the percentage increase? How do these increases impact the long-term financial security of retirees?

Post-Retirement Benefit Increases: Nationwide offers automatic post-retirement benefit increases for participants with service before 1996, with annual increases between 0% and 3% based on fund performance. These increases help to protect retirees’ long-term financial security by adjusting their pension income for inflation.

How can employees contact NDPERS for more information regarding their retirement options, and what specific resources are available for personalized assistance? Clear communication channels and support services are essential for helping employees navigate their retirement planning effectively with NDPERS.

Contacting the Nationwide Retirement Center: Employees can reach the Nationwide Retirement Center at Fidelity by calling 1-800-238-4015 for inquiries about their retirement plan. Fidelity provides detailed support, including benefit estimates, plan information, and assistance with filing claims and selecting benefit distribution options(Nationwide Mutual Insur…).