IowaSF 61991st General Assembly (2025–2026)SenateWALLET

A bill for an act relating to the natural hazard mitigation financing program, the disaster recovery housing assistance program, the disaster recovery new housing program, post-loss assignment of benefits, the licensing and regulation of adjusters, appraisers, and umpires, and the Iowa economic emergency fund, and providing penalties, making appropriations, and including effective date and applicability provisions. (Formerly SF 591, SSB 1188.) Effective date: 04/22/2025, 07/01/2025. Applicability date: Conditional, 01/01/2024.

Sponsored By: COMMITTEE ON APPROPRIATIONS

Signed by Governor

ways and means

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

29 provisions identified: 14 benefits, 5 costs, 10 mixed.

Broader disaster housing help for households

Eligible homeowners and renters can receive disaster housing grants, loans, or forgivable loans, subject to available funding. Their primary home must have been damaged or destroyed by a natural disaster on or after June 16, 2021. A governor’s proclamation must cover their county and authorize aid for homeowners, renters, or both. Disaster case advocacy registration is optional. The Iowa Finance Authority can use no more than 5% of specified fund deposits for administration and program support.

Homeowners gain contractor claim protections

When homeowners assign post-loss insurance benefits, residential contractors cannot rebate deductibles or charge prohibited assignment-cancellation or insurance-check processing fees. Contractors cannot act as public adjusters without a license or collect insurance money unrelated to covered property work. Assignments cannot harm mortgage lenders’ interests; every lender listed on the policy must be a co-payee. Contractors can be co-payees only alongside the homeowner and all listed lenders. Contractors cannot enter assignment contracts for at least 72 hours after a catastrophic disaster; after a public hearing, the commissioner can add 72 hours when needed to safely deploy consumer-protection resources.

Homeowners gain repair assignment cancellation rights

Contractor agreements assigning post-loss insurance benefits must list work, materials, labor, fees, and total cost, without promising full coverage. They must protect the homeowner against specified claim liabilities and include rights notices in capitalized 14-point type, with cancellation notice beside the signature. You can cancel in writing without penalty within five business days after receiving a fully signed copy. You can also cancel if substantial work has not begun 30 calendar days after the scheduled start, or after receipt when no start date exists; refunds are due within 10 business days. Contractors must send electronic copies to you, the insurer, and listed mortgage lenders within five business days, provide paper copies within five business days of request, and cooperate with claim investigations. Assignments cannot block insurer contact with you or listed mortgage lenders; required notices on contracts, estimates, or work orders must be signed and sent to the insurer before payment from policy proceeds. A contractor’s violation makes the assignment void and counts as an unfair practice.

Insurers face claim help and payment deadlines

Insurers must provide needed forms, instructions, and reasonable help within 15 business days after notice of a first-party claim. Unless both sides agree otherwise in writing, property appraisal awards are binding and payable within 60 calendar days after receipt. Policy limits, terms, deductibles, and prior payments still apply. The insurer must explain the payment in writing, including specifically denied items. An insurer seeking to set aside an award for good cause must file in court within 30 calendar days after receipt.

Policyholders gain public adjuster fee protections

Before services begin, public adjusters must use a state-approved written contract identifying the parties, claim, services, fees, bond, expenses, and settlement and cancellation rights. Fees cannot exceed 15% of insurer-approved claim payments for noncatastrophic settlements or 10% for catastrophic settlements; the insured is primarily responsible for payment. If the insurer pays policy limits within five calendar days after the loss report, fees cover only reasonable services already performed. Adjusters must review the contract, explain the claim process separately, give you an original, and notify the insurer with your signed authorization within 72 hours. Extra expenses require written disclosure and your approval; anything of value must be returned within 15 business days after rescission. Noncompliant contract forms are unenforceable, and covered contracts with unlicensed public adjusters are void, with no payment owed for past or future services.

Public adjuster fees and contracts limited

Reasonable public adjuster fees cannot exceed 15% of insurer-approved payments for noncatastrophic disaster claims, or 10% for catastrophic claims. Reopened and supplemental claim fees must stay within contract limits. If the insurer pays or commits in writing to policy limits within five calendar days after the loss report, fees cover only reasonable time and expenses through that date; the adjuster must explain that limits may not cover the full claimed loss. Contracts cannot require checks payable only to the adjuster, improper early percentage collections, pre-payment collection costs or late fees, or higher compensation because of litigation. Contracts also cannot waive civil remedies, restrict direct communications, grant broad power of attorney, or require a particular repair provider.

Public adjusters must protect clients and money

Public adjusters must put clients first, avoid conflicts, and obtain written consent before accepting or rejecting settlements or filing complaints. Door-to-door solicitation is prohibited, as is solicitation between 8 p.m. and 9 a.m. For 72 hours after a catastrophic disaster, adjusters cannot initiate contracts unless the consumer contacts them first; after a public hearing, the commissioner can add 72 hours. Adjusters cannot block insurer access and must respond to inquiries within 15 business days. Claim money must stay separate from business and personal funds, with client records, in a noninterest-bearing trust account at a licensed Iowa financial institution within five business days. After a contractor invoice, funds must be paid out within 30 calendar days if the insured approves the completed work.

More recovery options for damaged homes

Eligible homeowners can get help with repairs or rehabilitation, or a replacement-home down payment and reasonable repairs. Aid is no longer limited to forgivable loans, and a case manager referral is no longer required. Damage must exceed insurance and other eligible disaster aid; local officials must assess whether the home can be repaired. A home eligible for a city or county buyout qualifies only if the homeowner requests repair or rehabilitation instead. Awards cannot duplicate other local, state, or federal disaster recovery benefits.

Replacement rent help for disaster survivors

Eligible renters can get short-term help paying rent on replacement housing without a disaster case manager referral. A local administrator must find their damaged home repairable but currently unfit for short-term living, or beyond reasonable repair. Assistance cannot duplicate other local, state, or federal disaster recovery benefits. The law does not specify an award amount or how long short-term help lasts.

Household tax break for housing grants

Individuals can subtract qualifying disaster recovery new housing grants from Iowa taxable income, limited to grant money included in income. The Iowa Economic Development Authority must have approved and issued the grant. Applications must have been made between August 20 and December 31, 2024. Effective April 22, 2025, the deduction applies to tax years beginning on or after January 1, 2024. The provision is repealed January 1, 2028.

Business tax break for housing grants

Businesses can subtract qualifying disaster recovery new housing grants from Iowa taxable income, limited to grant money included in income. The Iowa Economic Development Authority must have approved and issued the grant. Applications must have been made between August 20 and December 31, 2024. Effective April 22, 2025, the deduction applies to tax years beginning on or after January 1, 2024. The provision is repealed January 1, 2028.

Floodplain and repayment limits on housing aid

Disaster housing aid cannot repair or rehabilitate a damaged home in a one-hundred-year floodplain. Replacement housing in that floodplain also cannot receive down-payment or repair aid. Homeowners who sell the affected or replacement home before their loan term ends must repay the remaining principal, including forgivable-loan balances. The Iowa Economic Development Authority can set maximum grant, loan, and forgivable-loan amounts, plus loan terms. The law does not specify those maximums or terms.

Adjusters face licensing and bond requirements

Public and independent adjusters need Iowa licenses; staff adjusters, attorneys acting professionally, and people providing only facts or technical help are exempt. Staff adjusters still follow the chapter except its financial-responsibility rules. License applicants need a surety bond of at least $50,000, available for damages from errors, fraud, or unfair practices. Bond termination requires 30 calendar days’ written notice; a lapsed or impaired bond makes the license inactive until financial responsibility is restored. Licenses cost $50 to issue or renew for 24 months, $50 to reinstate, or $100 to reinstate or reissue after discipline. Adjusters must keep estimate and coverage records for five years after settlement, and transaction records for five years after the transaction. Transaction records are open to state inspection during business hours, except litigation-preparation or legally privileged records.

Adjusters face stronger penalties for misconduct

Adjusters can face probation, license denial, suspension, revocation, or civil penalties for fraud, legal violations, unpaid taxes or support, and failure to cooperate. Nonresident licenses become inactive after specified out-of-state license actions, which must be reported within seven calendar days. Business licenses can face discipline after a hearing when responsible licensed leaders knew or should have known of violations and failed to report and correct them. Civil penalties reach $1,000 per violation, capped at $10,000, or $5,000 per knowing or reasonably knowable violation, capped at $50,000 in six months. Employers must also be penalized for directing, encouraging, accepting, or ignoring violations. Unlicensed practice, willful violations, and theft or misuse of trust funds are class D felonies, rising to class C when resulting losses exceed $10,000.

Appraisal professionals face reporting and penalties

Appraisers and umpires face license discipline for fraud, incompetence, mishandling property, listed legal violations, and specified unpaid tax, support, or student-loan obligations. Business licenses can face discipline after a hearing when leaders knew or should have known of violations and failed to report and correct them. Professionals must report specified administrative actions within 30 calendar days after final disposition, and criminal prosecutions within 30 calendar days after the initial pretrial hearing. After a hearing, civil penalties reach $1,000 per violation and $10,000 total, or $5,000 per knowing or reasonably knowable violation and $50,000 in six months. Employers must also be penalized for directing, encouraging, accepting, or ignoring violations. Unlicensed practice or willful violations are class D felonies, rising to class C when resulting losses exceed $10,000.

Property claim appraisals get deadlines and costs

Starting January 1, 2026, property policies issued, delivered, continued, or renewed in Iowa must include an appraisal clause. Either side can demand appraisal in writing over disputed actual cash value, scope of loss, or the amount payable. The claim must be properly reported, meet Iowa coverage or jurisdiction requirements, and include both sides’ itemized loss estimates. Each side has 20 calendar days to select an appraiser; appraisers have 15 calendar days to select an umpire, or the Insurance Division selects one. Appraisers then have 45 calendar days to submit values, and the umpire has 45 calendar days after receipt to issue an award. Each side pays its own appraiser and half the reasonable shared costs, including a needed umpire; parties can settle before an award.

Policyholders gain safeguards against appraisal conflicts

Appraisers must work fairly, consider important evidence, provide written itemized values and updates, and follow communication rules. They must disclose conflicts before work and withdraw within five business days if a conflict arises. They cannot also adjust or umpire the same claim, and can delay for reasonable cause or leave only when unforeseen circumstances prevent continuing. Umpires must disclose potential conflicts within three business days of hiring and before work, withdraw for conflicts, and obtain written contracts and authorization. They must independently review evidence; settlement talks require all parties’ requests, and property visits require all appraisers’ consent. A party or appraiser can object to an umpire for good cause within five business days of selection, sending required case details to all parties, the Insurance Division, and any appointing judge.

Investors get hazard bond tax exemption

Iowa Finance Authority bonds and notes issued for the natural hazard mitigation financing program are exempt from Iowa taxation. Interest paid on those bonds and notes is also exempt from Iowa income tax. The law sets no stated end date for these exemptions.

Iowa dedicates money to disaster recovery

Starting July 1, 2025, Iowa annually appropriates 10% of its Economic Emergency Fund’s prior-year maximum balance for disaster response, recovery, and citizen aid. This includes disaster housing programs, but spending requires a disaster-emergency proclamation, the governor’s direction, and Executive Council approval. The money cannot replace other appropriations; undistributed funds revert at fiscal year-end, while transferred funds remain available through the following fiscal year. Effective April 22, 2025, the law also provides $11.6 million for disaster recovery housing assistance and $2 million for nuisance property remediation for fiscal year 2024–2025. Unobligated balances of those immediate appropriations remain available through the following fiscal year.

Insurance appraisers and umpires need licenses

Insurance appraisers and umpires generally need Iowa licenses, relevant qualifications, a passing exam, and suitable character and competence. Three years of qualifying professional experience is generally required, but the commissioner can waive it based on other qualifications. Work solely on crop hail or multiperil crop claims is exempt. Two-year licenses cost $50 initially and at renewal; appraiser reinstatement after expiration or discipline costs $100, and umpire expired-license reinstatement costs $100. Criminal-history checks and related fees may apply, and umpire exam results remain valid for 90 calendar days. People applying for appraiser and adjuster licenses together pay only one chapter’s license fee.

Appraisal oversight expands with confidential investigations

Insurance appraisers and umpires must follow Iowa’s insurance rules against unfair practices. They must keep customary appraisal records for at least three years after final claim resolution and allow business-hours inspections, except for litigation-preparation or legally privileged records. Disciplinary investigation files are confidential, generally unavailable through discovery or subpoena, and inadmissible outside the disciplinary case. The commissioner can share files with specified agencies that preserve confidentiality, must report information indicating crimes, and must publish final written disciplinary decisions.

Claimants split umpire costs with safeguards

Claimants and insurers each pay half of an appraisal umpire’s reasonable and necessary fees and expenses. Appraiser and umpire fees cannot depend on the award’s outcome; appraisers also cannot accept barter, gifts, favors, or in-kind payment. Umpires cannot charge if the parties settle before directing work to begin, and advance payment is barred unless work uses time-plus-expense billing. An appraiser who abandons the case before the umpire’s written award cannot collect fees, deposits, or other compensation. An umpire who abandons the appraisal before issuing an award is also not entitled to payment.

Broader licensing rules for insurance adjusters

Iowa regulates public, independent, and licensed staff adjusters, but excludes people working solely on crop hail or multiperil crop claims. Individuals generally must meet character, skill, financial, office, fee, and exam standards; Iowa residents must be at least 18, and nonresidents must hold a home-state license in good standing. Adjuster businesses must name an Iowa-licensed adjuster to oversee compliance; the commissioner can issue rules on licensing, contracts, disclosures, fees, conduct, records, and penalties. Public adjusters must submit contracts and changes before use; submissions are deemed approved unless the commissioner acts within 30 calendar days. Licensing and exam requirements apply three months after enactment to independent and staff adjusters doing business in Iowa on January 1, 2025.

Adjuster license fees with exam relief

Adjuster license issuance or renewal costs $50 for 24 months; reinstatement costs $50, or $100 after discipline. Concurrent adjuster and appraiser applicants pay one license fee and can take one joint exam for one exam fee. Individual applicants generally must pass a written exam. Certain out-of-state license holders qualify for an exemption if their prior exam covered Iowa laws and rules. Relocating applicants must apply within 90 calendar days after establishing Iowa residency and meet prior-license and good-standing requirements.

Adjusters face license restoration and debt rules

Disciplined adjusters can seek license restoration by meeting licensing and exam requirements, passing a criminal history check, and proving restoration serves the public interest. They must show the grounds for discipline no longer exist. If an order sets no restoration terms, or the license was forfeited, applicants generally must wait one year; suspended adjusters can apply before suspension ends. Certified child-support or state-debt noncompliance requires license denial, suspension, or revocation of an already suspended license, generally after 30 days’ notice unless withdrawn. A timely district-court hearing request pauses proceedings, but applicable fees and continuing education still apply.

Appraisal professionals face checks and license limits

Iowa can require criminal history checks for initial appraiser and umpire licenses and specified applications following discipline; applicants may pay applicable check fees. Disciplined professionals can seek restoration or reissuance by meeting licensing rules, paying fees, passing a criminal history check, and proving the discipline grounds are gone and restoration serves the public interest. They generally must wait at least one year if the order sets no terms or the license was forfeited; expired licenses require reissuance. Certified child-support or state-debt noncompliance requires license denial, suspension, or revocation of an already suspended license, generally after 30 days’ notice unless withdrawn. A timely district-court hearing request pauses proceedings until resolution.

Appraisal professionals gain license restoration options

Appraisers and umpires can restore expired licenses within one year by applying, paying required fees, and documenting continuing education; afterward, they need new licenses. Appraisers must pay both reinstatement and renewal fees; the umpire expired-license reinstatement fee is $100. Eligible professionals who voluntarily surrendered licenses outside discipline can request reactivation within 90 calendar days; disciplinary cases use separate procedures. Continuing education is required for renewal or reinstatement, and appraisers must report name or business-address changes within 30 calendar days or risk penalties. The Insurance Division must publish licensed appraiser and umpire lists; appraiser businesses must name a licensed Iowa appraiser responsible for compliance.

Hazard loans gain funding with limits

Iowa’s natural hazard program provides low-interest loans for eligible projects that reduce disaster risks. Beginning with the fiscal year starting July 1, 2025, the state can accept FEMA grants to fund these loans. Grant agreements and intended use plans must follow federal STORM Act requirements, and all FEMA payments go into the revolving fund. Private entities cannot use loans from this fund to buy real estate.

Hazard reduction loans bring financing and fees

Iowa creates low-interest loans for eligible natural-hazard projects through its emergency management department and Finance Authority. Borrowers and costs must qualify under the federal STORM Act and an approved state plan; private entities cannot use loans to acquire real estate. Agencies set rates and repayment terms, and the Finance Authority can charge operating fees and costs without a fixed amount. A dedicated revolving fund receives appropriations, repayments, investment income, and federal money, including capitalization grants beginning July 1, 2025; money stays reserved for eligible loans and administration. The Finance Authority can issue bonds backed by designated assets for loans and required state matching funds, without pledging state or local taxes. The bonds are exempt from state taxation, and their interest is exempt from state income tax.

Sponsors & Cosponsors

Sponsor

COMMITTEE ON APPROPRIATIONS
Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 138 • No: 1

House vote • 4/17/2025

Passed House

Yes: 91 • No: 1

Senate vote • 4/16/2025

Passed Senate

Yes: 47 • No: 0

Actions Timeline

NOBA: Final
5/30/2025legislature
Explanation of vote.
4/24/2025House
Signed by Governor.
4/22/2025Senate
Reported correctly enrolled, signed by President and Speaker, and sent to Governor.
4/21/2025Senate
Message from House.
4/21/2025Senate
Immediate message.
4/17/2025House
Passed House, yeas 91, nays 1.
4/17/2025House
Substituted for HF 1012.
4/17/2025House
Read first time, passed on file.
4/17/2025House
Message from Senate.
4/17/2025House
NOBA: Senate Floor
4/16/2025Senate
Immediate message.
4/16/2025Senate
Passed Senate, yeas 47, nays 0.
4/16/2025Senate
Amendment S-3106 filed, adopted.
4/16/2025Senate
Amendment S-3103 filed, adopted.
4/16/2025Senate
Placed on Ways and Means calendar.
4/14/2025Senate
Placed on calendar.
4/10/2025legislature
Committee report, recommending passage.
4/10/2025Senate
Subcommittee recommends passage.
4/10/2025legislature
Subcommittee Meeting: 04/10/2025 8:30AM Senate Lounge.
4/10/2025Senate
NOBA: Senate Full Approps
4/9/2025Senate
Subcommittee: Rowley, Dotzler, and Koelker.
4/8/2025Senate
Referred to Ways and Means.
4/7/2025Senate
Committee report, approving bill.
4/2/2025Senate
Introduced, placed on Appropriations calendar.
4/2/2025Senate

Bill Text

As Introduced
PDF
Enrolled
PDF

Related Bills

Back to State Legislation