CEDAR RAPIDS, Iowa — Insurance rates are increasing as inflation rises throughout the country.
Vaughn Costello from Skogman Insurance told Iowa’s News Now that some insurance companies are leaving the Hawkeye state entirely.
This comes as home insurance agencies are still recovering three years post-derecho.
The average number of claims has gone up quite a bit the last couple of years, which is really caused the perfect storm for this to happen,” said Vaughn Costello from Skogman Insurance.
The devastating 2020 windstorm is one of the most costly thunderstorm events in U.S. history.
Costello says weather events in general like hail and wind can cause rates to rise.
Inflation has caused the cost of materials, as well as labor costs, to go up,” Costello said. “The insurance industry really had no way to recover from it.”
Joe Vens from First Mainstreet works to provide insurance to commercial and public organizations. He says it’s not just hitting homeowners: the insurance industry as a whole is being impacted.
With less competition in the market, more challenges, it’s created a rate environment where there’s significant increases, premiums are going up,” Vens said. “We need to figure out a way to control costs, and that’s difficult or challenging with the economy that we’re in. Some of that is just out of our control.”
Costello says the average homeowner’s insurance rate has gone up 20%, but many are paying even more.
Some insurances are changing their policy coverages and deductibles.
He says it’s important to consult with an insurance agent who can advocate for your policy.
There’s a misconception that having an agent actually costs more for insurance, which is not true. Having someone who can walk you through that policy, make sure you’re covered properly, and also just assist with the policy needs,” Costello said. “In a time where everything’s going up in cost, it’s important that people not only are prepared for it, but have a plan for it.”
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.