CEDAR RAPIDS, Iowa — Homeowner insurance rates are spiking in Iowa and across the country, with some rates nearly doubling.
Amy Curtis, a Cedar Rapids resident, was shocked when her home insurance rate jumped from $1,200 to $2,100. Now, she’s adjusting her budget to cover the cost.
“Mine, like I said, came in an email. It’s time to renew. By the way, we’re going to charge you $1,100 more,” Curtis said.
Curtis moved to her Cedar Rapids home four years ago. While she has seen a steady increase in her insurance costs, this recent jump was a big shock.
“My insurance is rolled into my mortgage payments through my bank, so I won’t be hit by that big bill,” Curtis said. “But people who don’t have that are going to be hit with way more than they expect.”
Inflation and natural disasters are driving higher rates across the country, particularly in states like Iowa, where weather events are becoming more costly and severe.
Experts say insurance carriers are paying out more in damages than they are collecting in premiums. Iowans should brace for rising costs.
“Insurance carriers are looking at our state because of the frequent storms, which cause a lot of claims. That is factoring into their decision on whether to write policies in the state,” said Sonya Sellmeyer, a consumer advocate at the Iowa Insurance Division.
However, with the economy stabilizing, experts are hopeful that homeowners won’t see another drastic increase next year.
“I suspect that the pressure is relaxing, or if it’s not this year, it will be next year,” said University of Iowa finance professor Martin Grace. “We’re very close to the point where the economy is getting back to normal. The Federal Reserve has reduced interest rates, and it might reduce them more. That’s a good sign that inflation is easing.”
Iowans like Curtis are finding ways to stay within their means.
“Just kind of not going out as much for dinner, eating more at home, that kind of stuff. But most of all, trying not to panic. I’m shopping around, looking for other insurance agencies and chances to bundle things like car and auto,” Curtis said.
Experts advise not to go without homeowners insurance. For those struggling with the cost, it’s recommended to speak with an insurance agent to explore potential solutions.
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.