CEDAR RAPIDS, Iowa (KCRG) – Iowa’s insurance market is showing signs of recovery after several years of costly storms, according to local insurance agents who say more companies are willing to offer coverage.

Ed Faber, an insurance agent at Insurance Gurus in Cedar Rapids, said the insurance market is starting to clear up after several years of costly Iowa storms.

“It’s encouraging because I still have four or five companies that are giving me a rate,” Faber said.

That compares to last year, when in some cases he could only find two companies willing to offer home insurance to an Iowa client.

The 2020 derecho caused $11 billion in damage across the Midwest, with Iowa as the hardest-hit state.

Faber said he is seeing the insurance market starting to soften.

“I saw a lot fewer claims last year. And it looks like through the state it’s going to be a good year,” he said.

Disasters continue to impact other areas of the country. California accounted for more than half of the $115 billion in climate-related damages in 2025.

“It’s about one fourth of the worst year,” said Martin Grace, a University of Iowa Tippie College of Business professor.

Grace said many companies have changed their policies, particularly when it comes to roof damage from wind or hail. He said there are several reasons why the market is leveling off in Iowa.

“There were a couple of things that were going on around 5 years ago, mostly COVID, supply chain disruption,s and the massive amount of inflation, but people forget housing prices went up 50 to 60 percent even in Iowa,” Grace said.

Faber said rates won’t likely start to fall unless this trend continues for another few years, but he believes companies will continue to adjust how they insure homes in Iowa.

“Insurance companies are a little bit harder with the risk. Especially homes with older roofs. Now a roof that is 15 years or older or older than 15 years it’s going to be harder to get insurance with,” Faber said.

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