Top 5 Insurance Mistakes Ames & Central Iowa Residents Make (and How to Avoid Them)
Insurance is something most of us don’t think about until we need it. But in Central Iowa—where families, students, and small business owners all come together—it’s important to make sure your coverage fits your lifestyle and risks. Over the years, we’ve noticed some common mistakes people make when it comes to their personal insurance. Here are the top five, plus a few tips on how to avoid them.
1. Relying Only on the State Minimum for Auto Insurance
Iowa law requires only $20,000 per person / $40,000 per accident in liability coverage. While that keeps you legal on the road, it’s rarely enough to protect you financially after a serious accident. Medical bills, property damage, and legal fees can quickly exceed those limits.
👉 Tip: Consider increasing your liability coverage and adding umbrella protection to give yourself peace of mind.
2. Not Updating Coverage After Major Life Changes
Buying a home, adding a teenage driver, or welcoming a new baby—life changes fast. But many people forget to update their insurance policies to reflect these milestones.
👉 Tip: Review your policies at least once a year, or anytime a major life event happens.
3. Skipping Renters Insurance
With thousands of Iowa State University students and young professionals renting apartments and houses in Ames, Iowa, we often see people assume their landlord’s policy covers their belongings. Unfortunately, that’s not the case. Without renters insurance, your furniture, electronics, and clothes aren’t protected from fire, theft, or water damage.
👉 Tip: A renters policy is affordable—often less than the cost of a pizza per month—and includes valuable liability protection too.
4. Underinsuring Homes Against Severe Weather
Iowa weather can be unpredictable. Hail, tornadoes, and heavy storms are part of life here. Too often, homeowners only discover they’re underinsured after damage occurs.
👉 Tip: Make sure your dwelling coverage reflects the replacement cost of your home, not just the market value. Ask about endorsements for sewer backup or equipment breakdown, which can be important in older Central Iowa homes.
5. Overlooking Life Insurance When Young and Healthy
Many Central Iowa residents think life insurance is only for people later in life. The truth is, coverage is much more affordable when you’re young and healthy—and it can protect your family’s financial future if the unexpected happens.
👉 Tip: Even a small policy can make a big difference. Think of it as part of your overall financial plan.
Final Thoughts
Insurance is about more than just meeting requirements—it’s about protecting your lifestyle, family, and future. By avoiding these common mistakes, Ames & Central Iowa residents can feel confident that they’re covered no matter what life brings.
If you’d like to review your current coverage or ask questions about your options, Severson Insurance Agency is here to help. Local. Trusted. Here for You.
📞 Contact us today to schedule a review and make sure your policies are working for you—not against you.
