Iowa — Many Iowa homeowners are seeing their insurance premiums rise and some companies are refusing to insure some properties altogether.
Sonya Sellmeyer, a consumer advocacy officer in the Iowa Insurance Division, says there have been a series of rate increases since the derecho that hit Iowa in August of 2020.
Reinsurance is basically insurance for insurance companies. Sellmeyer says Iowans facing a significant hike in homeowners insurance could consider a higher deductible — if it’s an amount they can afford. Sellmeyer is encouraging Iowans to have a discussion with their licensed insurance agent, to ensure their policy would cover the cost of replacing their home and its contents.
Flooding is the most common and costly natural disaster in the U.S. There’s been a federal flood insurance program since the 1960s for property in a flood plain and a federal rule change in 2019 encouraged private companies to sell flood insurance policies. Sellmeyer says you can buy private flood insurance in Iowa even if your property is not in a flood plain.
According to the National Association of Realtors, home insurance premiums in the U.S. are expected to rise about six percent by the end of the year.
