Climate disasters have made Iowa a losing proposition for some insurance companies. Here’s how Iowans are being affected

/ Owner - July 7, 2024

In Iowa, the homeowners insurance market had been profitable for years, followed by losses in 2020 to 2022 because of severe storms, Ommen said.  “We have strung together some pretty tough years — 2021 and 2022 were also really difficult years,” he said.  In 2020 alone, insurers in the state lost a combined more than $1 billion, according to data from the Iowa Insurance Division.  That year, a derecho, a powerful line of severe storms with hurricane-strength wind gusts, tore through Iowa and the Midwest. It was preceded by severe thunderstorms that dropped pingpong ball to baseball sized hail across Eastern Iowa, and followed by a string of windstorms, hail and tornadoes, making it hard for insurers to recover.

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