WASHINGTON, DC – As Iowa homeowners grapple with some of the steepest insurance rate hikes in the country, new data shows many are also being denied when they file a claim. The share of Iowa homeowner claims closed with no payment climbed to 33.70% in 2025, up from 25.66% in 2022, an 8-point jump in just three years based on 2025 National Association of Insurance Commissioners (NAIC) data. Farm Bureau Property & Casualty Insurance Co., domiciled in Iowa, denied 70.5% of homeowner claims with no payment nationally, among the highest denial rates of any large insurer in the country.
“Iowa homeowners are getting hit from both directions: they’re paying record premiums, and now they’re being denied more often than ever at the moment when they need coverage the most,” said Jayson O’Neill, spokesperson for Unlocking America’s Future. “Meanwhile, insurers are making millions of dollars every single day by delaying the payments families need to rebuild after a storm. Iowa’s congressional delegation has refused to hold insurers accountable, and they supported this administration’s gutting of critical federal weather forecasting and preparedness programs that could help prevent these losses in the first place. Iowa homeowners deserve better representatives who will stand up to the corporate home insurers making record profits.”
Iowa homeowners already pay an average annual premium of $3,136, 31% higher than the national average, after rates rose 96% between 2020 and 2025, the second-largest increase in the nation. Last year, the five biggest home insurers closed more than 44% of claims without payment, up from 36% in 2016.
Property and casualty insurance corporations have a massive financial incentive to deny legitimate policyholder claims and delay payments. New analysis found insurers earn $8.8 million a day in extra interest and investment income for every day homeowner claims go unpaid. When analyzing the pattern and practice of delaying payments across all lines of property and casualty insurance the daily income jumps to over $52 million. Home insurance corporations netted an unprecedented $405 billion in profit over the last three years.
The jump in denial rates across Iowa combined with skyrocketing costs disrupting the housing market will be a top issue when Iowans head to the polls in November, with voters explicitly calling out federal politicians for their failure to hold home insurers accountable. Meanwhile, vulnerable Republican Reps. Ashley Hinson, Mariannette Miller-Meeks, and Zach Nunn have sided with the home insurance industry and against Iowa homeowners in Congress that shift more risks and rising costs onto them, eating into their already strained household budgets. All three members have supported cuts to FEMA preparedness funding and weather forecasting along with siding with the polluters causing the climate-driven extreme weather hammering Iowans.
Republican Rep. Miller-Meeks (IA-01) cashed in over $1.1 million, including nearly $20,000 from home and auto insurers, in campaign contributions from the insurance, financial, and real estate sector, and nearly $380,000 from energy and natural resource special interests for her 2026 campaign so far.
Republican Rep. Hinson (IA-02) has received over $1.3 million, including $22,500 directly from property and casualty insurers, in campaign donations from the insurance, financial, and real estate sector, and over $360,000 from extractive industries just this cycle.
Republican Rep. Nunn (IA-03) took in a whopping $1.5 million in campaign cash from the insurance, financial, and real estate sector, with over $46,000 coming directly from the home and auto insurance sector. Nunn also took in nearly $200,000 from natural resources, utilities, and fossil fuels for his campaign this cycle.
Democratic members of Congress recently announced they launched an investigation into home insurers’ use of credit scores in price setting.
Email jayson@focalpointstrategygroup.com to set up interviews with ratings, legal, advocacy, and insurance experts.
###
