Iowa Homeowners Could See 19% Spike in Home Insurance Rates, Report Predicts

Iowa ranks No. 3 on Insurify’s list of states where home insurance premiums are rising the fastest.

Sara Getman
Written bySara Getman
Sara Getman
Sara GetmanAssociate Editor

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.

Chris Schafer
Edited byChris Schafer
Chris Schafer
Chris SchaferDeputy Managing Editor, News and Marketing Content
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

Featured in

media logomedia logomedia logomedia logo
MacKenzie Korris
Reviewed byMacKenzie Korris
MacKenzie Korris
MacKenzie KorrisInsurance Copy Editor

MacKenzie Korris is an insurance copy editor with years of experience in print and digital media. He strives to craft actionable, inclusive copy that fosters smart decision-making through reader autonomy. He has a journalism degree from Saint Louis University.

Published | Reading time: 2 minutes

Advertiser Disclosure

At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.

We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

Share

Table of contents

Table of contentsexpand/collapse

Iowa homeowners don’t face some common threats like hurricanes or earthquakes. Yet, they live in a state where home insurance rates will likely grow much faster than average in 2025, according to a new report by insurance comparison marketplace Insurify.

Insurify projects Iowans may face a 19% increase in home insurance rates this year, after the state’s 19% increase in 2024. The back-to-back increases will bring the state’s average annual cost of homeowners insurance to $3,825 by the end of the year.

The rate increases are due, in part, to the severe weather the state experiences, including strong winds, tornadoes, and hail. All these weather factors can cause significant structural damage to roofs and drive up claims.

So far, 56 severe hail events have hit Iowa in 2025, according to preliminary data from the National Weather Service (NWS). Seven events brought hail two inches or larger in diameter.

Hail is pounding Iowa’s insurance market

Iowa experienced 504 hail events in 2023, according to the NWS. This marked a 133% increase over 2022 activity.

Per Doug Ommen, Iowa’s insurance commissioner, five insurers stopped writing policies in the state in 2023. Severe weather and increased repair costs were the main reasons for the insurers’ withdrawal, according to Ommen.

To mitigate losses, some of Iowa’s remaining insurers have started offering actual cash value (ACV) coverage for roofs instead of replacement cost coverage.

“Replacement cost coverage replaces the item with a new product of the same value and quality,” said Buddy Parkhurst, an Insurify insurance agent. “Actual cash value is the replacement cost minus the depreciation.”

And factored depreciation leads to lower insurance policy payouts.

For example: “Say you have a roof that’s 15 years old and would cost $20,000 to replace. But the depreciation is 50%, so, with ACV, the homeowner would only receive $10,000, minus their deductible,” Parkhurst explained. “They’re on the hook for at least the remaining $10,000 [of the cost of a new roof].”

That said, homeowners can’t afford to let roof damage linger. Repairing a roof after damage is important to mitigate rate spikes. “The age and condition of the roof will be the driving factor for eligibility and pricing,” Parkhurst said.

What’s next: Iowa legislative action

With Iowa’s home insurance rates projected to rise to more than double the national average, legislators are proposing reform.

House Bill 499, introduced in February, aims to establish a disaster assistance program to help homeowners pay for damage “that is not covered by the homeowner’s insurance policy or by other federal or state disaster-related financial assistance.”

House Bill 957, introduced in March, aims to modify the existing Disaster Recovery Housing Assistance Program and extend eligibility to any homeowner during a declared disaster, not just homeowners enrolled in the program. It also focuses on standards for insurance adjusters to encourage impartial claims evaluations and stem fraud.

Sara Getman
Sara GetmanAssociate Editor

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.

Chris Schafer
Edited byChris SchaferDeputy Managing Editor, News and Marketing Content
Chris Schafer
Chris SchaferDeputy Managing Editor, News and Marketing Content
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

Featured in

media logomedia logomedia logomedia logo
MacKenzie Korris
Reviewed byMacKenzie KorrisInsurance Copy Editor
MacKenzie Korris
MacKenzie KorrisInsurance Copy Editor

MacKenzie Korris is an insurance copy editor with years of experience in print and digital media. He strives to craft actionable, inclusive copy that fosters smart decision-making through reader autonomy. He has a journalism degree from Saint Louis University.