Homeowners in Iowa and Illinois are about to face jumps in their insurance premiums this year, with Iowans seeing the third-highest increase in the nation at 19% — more than double the national average, reported WQAD.
What’s happening?
According to the insurance comparison website Insurify, the average Iowa homeowner will pay $3,825 in 2025, which is up from $3,201 last year, an increase of $624. Illinois residents face a smaller but still substantial 10% increase, bringing their average premium to $3,402.
Sonya Sellmeyer from the Iowa Insurance Division points to severe weather as the primary culprit.
“Mother Nature has wreaked havoc on our state,” she explained, per WQAD. “Insurance companies can’t continue to pay out and not bring in enough to cover those losses.”
The financial strain on insurance companies is significant. For every $100 they collect in premiums from Iowa homeowners, they pay out $122 in claims.
Why is climate-driven home insurance inflation concerning?
These rising costs are linked to our changing climate and its impact on your financial security. Weather disasters are becoming more severe, putting your home at greater risk.
In Iowa alone, hail events increased by 133% from 2022 to 2023. The state experienced seven billion-dollar weather disasters in 2024, far exceeding the historical average of 1.9 such events per year since 1980.
The 2020 derecho — a result of our overheating planet — continues to influence insurance rates in Iowa. As extreme weather events become more common, you might find it increasingly difficult to obtain affordable coverage for your home.
This creates a troubling cycle where insurance becomes less accessible when you need it most. The financial strain affects your monthly budget and your long-term housing security.
What can I do about rising home insurance costs?
You can take several practical steps to help manage these climbing premiums while also supporting climate solutions.
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Start by talking with your insurance agent about possible discounts. “You might want to talk to your insurance agent to make sure any security features you have on your house are being considered in your premium and any mitigation efforts you have taken,” Sellmeyer advised, per WQAD.
If you’ve upgraded to wind-resistant shingles or made other home improvements that boost resilience, make sure your insurer knows about these changes.
Consider shopping around for better rates from different companies. You can look into raising your deductible to a still-affordable amount to lower your monthly payments.
Making your home more climate-resilient helps protect it from damage and can reduce your insurance costs. Simple improvements like better insulation, energy-efficient appliances, and properly sealed windows can make your home more sustainable and better protected against extreme weather.
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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.