Iowans struggle to find homeowners insurance as companies pullout of the state

Cedar Rapids, Iowa – Many firms have left Iowa, making it difficult for certain residents to obtain homeowners insurance.

firms announced their departure from Iowa due to the state’s increasing frequency of strong storms and the escalating price of repairing the damage they cause. Insurance firms further stated that the situation has only gotten worse.

Making sure the 17 houses on East Post Court are insured for what the HOA is in charge of—the outside of these homes—is one of Beaver Creek Homeowners Association President David Langston’s numerous responsibilities. However, he learned in January that Pekin Insurance, the provider they had been using for many years, would no longer insure their houses.

“I was terrified and having sleepless nights trying to wrestle this into conclusion,” said Langston.

It’s not just Langston. Pekin was among the minimum of four businesses declaring that they would be ceasing to write homeowner’s insurance policies in Iowa.

“I’ve never seen it this bad,” said Ed Faber, owner of Insurance Guru in Cedar Rapids.

Faber stated that the state’s past—which included the 2020 derecho, recent tornadoes, hail, and other destructive windstorms—was the reason why a large number of the companies were leaving. The insurance sector reported an underwriting loss of $21 billion in the previous year.

“It has been year after year of bad weather events, but last year I started seeing companies that are pulling back on business,” said Faber.

Storm intensity and expense are increasing, and according to Florida State University Professor Dennis Smith, this trend will certainly continue.

“It’s something that we can’t hide from, we can’t deny, the science is there, and the earth is warming,” said Professor Smith. “The Earth is warming faster than it ever has been because of some of the actions we take as part of our civilization.”

Homeowners in Beaver Creek and Langston are currently bearing the cost. Compared to their previous policy, their new one is 50% higher.

“A lot of people are going to look around their neighborhood and think ‘we’re not being flooded on the coast, we’re not having fires, we’re not having earthquakes, we feel safe,” said Langston. “I don’t think people understand what tidal wave may be coming their way.”