Iowa educators, researchers warn of insurance challenges due to climate change

DES MOINES, Iowa — Iowa educators and researchers representing a number of colleges and disciplines issued a statement Monday highlighting the connection between climate change and insurance costs.

A group of faculty across Iowa universities have released annual statements on climate change since 2010.

“This year, we wanted to focus on a topic that frequently gets ignored in the climate discussion, which is the cost of insurance. Insurance, obviously, is a way that we spread costs of private risks in our society, but with climate change increasing risks from extreme events, that cost will increase for all of us,” David Courard-Hauri, a professor at Drake University, said during a news conference on the statement.

In the Midwest, the number of billion-dollar disasters (adjusted for inflation) has more than doubled in the past 40 years — a small part of a global trend of “shattered long-term climate records,” the statement says. Iowa has seen increased heavy rainfall, large hail and floods.

More frequent and severe disasters result in more expensive insurance, studies cited in the statement show. Its authors warned that homeownership could become unattainable for some Iowa families amid rising insurance costs. Farmers are especially vulnerable to climatic changes and the costs associated with natural disasters, the educators and researches said. 

Iowa has already seen rising insurance costs in some areas. Home insurance premiums in Iowa increased 14% from 2023 to 2024, a 2024 report shows, and are expected to increase 19% in 2025, according to Insurify.

These recent increases are driven by increased labor, building material and reinsurance costs, the statement says. In turn, climate change amplifies these costs, and its impact is expected to grow in the coming years.

Insurance coverage is “critical” to address escalating natural disasters, but it isn’t a long-term solution to underlying climate and energy-related problems, the statement says.

Individuals should be aware what their insurance covers and consider additional policies, such as flood insurance. Many property insurance policies do not cover flood damage, the statement warns.

On a larger scale, local governments should have the freedom to adopt strong building standards, the statement says. Its authors also urged decreasing reliance on fossil fuels like coal and oil for energy.