Storms Drive Iowa Homeowner Rate Increases

Iowa’s hail, wind and ice storms over the past few years are driving up homeowners’ insurance rates as much as 20 percent, according to the Des Moines Register. Like many other states, Iowa homeowners are facing steeper increases in their rates after years of steady or declining premiums.

Insurers planning increases:

· Allstate Insurance, with about 3 percent of Iowa’s market, will increase homeowner rates 17 percent. The average Iowa policyholders’ monthly payments would rise $5 per month.

· State Farm, with the largest share of Iowa homeowners at 22 percent, will increase rates about 3 percent statewide and about 6 percent in the Des Moines area. The average customer would pay less than $1 more a month with a 3 percent rise.

· Allied Insurance has the second-largest share of the market and is projecting about a 10 percent increase.

The third-largest insurer, American Family Insurance, plans no rate increase in Iowa this year.

Many carriers have notified the Iowa Insurance Division of large storm-related losses this year and that they planned to increase rates, said Susan Voss, deputy insurance commissioner.

Rate increases are expected to be between 10 percent and 21 percent, she said. Allstate reports a significant increase in storm-related claims plus reports rising building materials and construction costs. Last year, Allstate increased rates 7.1 percent, the company’s first increase in five years. Rates are based on a five-year average of claims experience.

The property insurance business has been competitive the last several years, and companies have been losing money on homeowners’ insurance, according to James Noyce, executive vice president of Farm Bureau Mutual Insurance Co.