Hunter
11/01/24
A recent report says Iowa is one of 15 states facing a mounting insurance crisis.
Iowa Capital Dispatch reports home insurance rates, on average, had a double-digit increase this year due to persisting damages from derechos and inflation.
The report, issued by Insurify, ranked the state third on the list of states with the highest year-to-date increases of premiums for homeowners. It says premiums increased 14% from October 2023 to 2024, with the average homeowner now spending $2,416 annually
A handful of insurance companies have stopped writing home insurance policies altogether in Iowa.
Sonya Sellmeyer, a consumer advocate with the Iowa Insurance Division, severe storms that have hit the state, most notably the 2020 derecho, has turned Iowa into a hard insurance market. The National Weather Service said parts of Iowa have had at least one derecho each year since.
Inflation, increases in construction material costs and continued supply chain issues are also increasing rates for most Iowans, and making it more difficult to mitigate damage from storms by building more durable, and costly, houses.
Auto insurance rates are also increasing due to cars becoming more complicated and resulting in more expensive repairs.
Insurify data shows Iowa car insurance rates increased nearly 8% from September 2023.
Iowans can find other tips on the division’s consumer connection page at iid.iowa.gov.