CEDAR RAPIDS, Iowa — Homeowners insurance rates are skyrocketing in Iowa and across the country, with some rates nearly doubling.
Cedar Rapids resident Amy Curtis was shocked when her home insurance premium jumped from $1,200 to $2,100. Now she’s adjusting her budget to cover the cost.
“Like I said, I got mine in the mail. It’s time to renew. By the way, I’ll charge you an extra $1,100,” Curtis said.
Curtis moved to his home in Cedar Rapids four years ago. Her insurance premiums had been steadily increasing, but this recent increase was a big shock.
“My insurance is rolled into my mortgage payment through my bank, so I don’t get hit with huge bills,” Curtis said. “But those who don’t have it will be hit much harder than expected.”
Inflation and natural disasters are causing rates to rise across the country, especially in states like Iowa, where damage from weather events is increasing and becoming more severe.
Experts say insurance companies are paying out more in damages than they collect in premiums. Iowans should prepare for rising costs.
“Insurance companies are looking at this state because we have frequent storms and a lot of claims. That’s factored into their decisions about whether to take out a policy in the state.” said Sonya Sellmeyer, a consumer advocate with the Iowa Department of Insurance.
But with the economy stabilizing, experts don’t expect homeownership to increase significantly again next year.
“I think the pressure is starting to ease, if not this year then next year,” said Martin Grace, a finance professor at the University of Iowa. “The economy is very close to getting back to normal. The Fed has lowered interest rates and could lower them further, which is a good sign that inflation is easing.”
Iowans like Curtis are finding ways to stay within their means.
“I don’t go out for dinner as much, I eat at home more. But most of all, I try not to panic. I work with other insurance agents and sell products such as automobiles in bulk. I’m shopping around for opportunities that I can,” Curtis said.
Experts recommend not buying homeowners insurance. If you are worried about costs, we recommend talking to your insurance agent to discuss solutions.
