Best Homeowners Insurance in Iowa: Owning a home in Iowa is a dream come true for many, but protecting that investment is equally important. Whether it’s harsh winters, tornadoes, or occasional flooding, Iowa homeowners face risks that make insurance essential.
Homeowners insurance gives you peace of mind by covering unexpected damages to your property and personal belongings while also offering liability protection.
However, with so many providers in the market, comparing quotes is crucial to find the best coverage for your needs.
What Does Homeowners Insurance Typically Cover?
Homeowners insurance policies usually include the following coverages:
- Property Damage: Covers damage to the structure of your home and personal belongings due to fire, theft, or natural disasters.
- Liability Protection: Protects you financially if someone is injured on your property and you are found liable.
- Additional Living Expenses (ALE): Pays for temporary housing if your home becomes uninhabitable due to covered damage.
- Optional Coverages: Depending on your location, you may need extra coverage, such as flood or earthquake insurance.
Top Homeowners Insurance Providers in Iowa
Here’s a quick overview of some of the best homeowners insurance providers in Iowa:
- State Farm: Known for excellent customer service and local agents.
- Allstate: Offers numerous discounts, including new home and multi-policy discounts.
- American Family: Great for those looking for customizable policies.
- Nationwide: Known for its optional coverages and flexible policies.
- USAA: Tailored policies for military families, offering exceptional service.
Cheapest Home Insurance Companies in Iowa
Prices for home insurance in Iowa vary depending on which insurance company you choose. Liberty Mutual provides the cheapest home insurance in Iowa, at just $811 each year. This compares favorably to the state average cost of $1,583, providing a $773 price cut on average statewide homeowners insurance costs.
Start searching for the lowest home insurance for you by reviewing the cheapest Iowa companies, listed below. Or, check out our page naming the best homeowners insurers ranked on a variety of factors.
AFFORDABLE HOME INSURERS IN IOWA
| Insurance Company | Average Yearly Rate in Iowa |
| Liberty Mutual | $811 |
| IMT | $1,080 |
| West Bend Mutual | $1,223 |
| Shelter | $1,362 |
| AAA | $1,381 |
Iowa Home Insurance Prices by Coverage Levels
How much you pay for home insurance coverage is greatly influenced by the level of coverage you choose. In Iowa, carrying $200,000 dwelling coverage costs an average of $1,207 per year, while maintaining coverage up to $400,000 costs as much as $2,020 per year.
POPULAR COVERAGE LIMITS IN IOWA
| Coverage Level | Average Annual Cost |
| $100,000 Dwelling | $809 |
| $200,000 Dwelling | $1,207 |
| $250,000 Dwelling | $1,428 |
| $400,000 Dwelling | $2,020 |
Homeowners Insurance Deductibles in Iowa
Homeowners have numerous choices to make when deciding on a home insurance policy, including how high or low to set their deductible. A homeowners deductible is how much your insurance requires you to pay out of pocket toward a claim. The deductible level you choose can change how much you pay in insurance premiums.
A good rule of thumb is: the lower your deductible, the higher your premium. As such, if you want to keep your insurance rates low, aim for a higher deductible. Remember: your homeowners deductible should not be set at an amount that you would have difficulty paying in the event of a loss.
Take a look at some of the typical deductibles offered by insurers and an approximation of what you can expect your premiums to be.
HOME INSURANCE PREMIUMS BY DEDUCTIBLE LEVEL IN IOWA
| Deductible Tier | Average Annual Homeowners Insurance Rate |
| $500 | $1,552 |
| $1,000 | $1,428 |
| $1,500 | $1,350 |
| $2,000 | $1,272 |
| $5,000 | $1,077 |
Iowa Homeowners Insurance Costs by City
Not every city in Iowa has equal home insurance costs. Policy pricing may depend on city-specific variables, such as the number of claims filed in the immediate area, meaning your ZIP code could have a major impact on how much you pay.
The cheapest homeowners insurance in Iowa is found in Bettendorf. A typical home insurance term in Bettendorf totals just $1,352 per year — $231 less than the average homeowners policy in other Iowa cities. The below cities have the most affordable home insurance in Iowa.
CHEAPEST CITIES FOR HOMEOWNERS INSURANCE IN IOWA
| City | Average 12-Month Home Insurance Rate |
| Bettendorf | $1,352 |
| Davenport | $1,364 |
| Dubuque | $1,373 |
| Clinton | $1,382 |
| Marion | $1,388 |
Home and Auto Insurance Bundling in Iowa
If you want to save on homeowners insurance, consider buying your home and auto policies from the same insurance company. A home and car insurance bundle in Iowa can save you a substantial sum each month on car insurance. Purchasing bundled policies in Iowa leads to average annual savings of $100.
HOME AND AUTO BUNDLING DISCOUNTS IN IOWA
| Avg. Annual Rate (No Bundle) | Avg. Annual Rate (w/ Bundle) | Annual Savings ($) | Annual Savings (%) |
| $980 | $880 | $100 | 11% |
Factors to Consider When Choosing a Homeowners Insurance Policy
- Coverage Limits: Ensure the policy covers the total value of your home and belongings.
- Premiums and Deductibles: Balance affordability with the amount you pay out of pocket during claims.
- Customer Service: Look for companies with a reputation for smooth claim handling.
- Discounts and Bundling: Many insurers offer savings when you combine home and auto policies.
Average Cost of Homeowners Insurance in Iowa
The average premium for homeowners insurance in Iowa is around $1,300 annually, though it varies depending on factors like location, home value, and coverage limits. Rural homes or those in tornado-prone areas may attract higher premiums compared to urban properties.
Iowa’s Unique Risks That Affect Insurance Rates
Tornado and Wind Damage Insurance
Iowa is part of Tornado Alley, making wind damage a common concern. Most standard policies cover wind-related damage, but you may have to pay a windstorm deductible.
Do You Need Flood Insurance in Iowa?
Even though flood damage isn’t included in most standard policies, some areas of Iowa fall into FEMA-designated flood zones. If your home is in one of these areas, purchasing separate flood insurance is highly recommended.
How to Get a Free Homeowners Insurance Quote in Iowa
Most insurance companies offer online quote tools where you can enter your information to get an estimate. Alternatively, working with local agents or brokers can help you navigate complex coverages and find the best deals. Always compare at least three quotes to ensure you’re getting the best value.
Ways to Save on Homeowners Insurance in Iowa
- Bundle Policies: Combine home and auto insurance to qualify for discounts.
- Home Security Systems: Installing alarms or cameras can reduce premiums.
- Increase Deductibles: Raising your deductible can lower your monthly premiums.
- Loyalty Discounts: Staying with the same provider for several years may earn you loyalty rewards.
Steps to File a Claim in Iowa
- Document the Damage: Take photos or videos to support your claim.
- Report the Incident: Contact your insurance company immediately.
- Work with Adjusters: A claims adjuster will assess the damage and estimate repair costs.
- Receive Payment: Once approved, you’ll get reimbursed for covered damages.
Customer Reviews: What Iowans Are Saying About Their Insurance Providers
Iowa homeowners have praised companies like State Farm and USAA for their quick claim responses and helpful local agents. However, some complaints center around high premiums in tornado-prone areas or limited coverage options for rural properties.
Common Exclusions in Iowa Homeowners Insurance Policies
- Flood Damage: Requires separate flood insurance.
- Earthquake Coverage: Must be purchased as an add-on.
- High-Value Items: Jewelry, collectibles, or art may need additional riders.
Comparing Homeowners Insurance for Rural vs. Urban Areas in Iowa
Homes in rural areas may need extra coverage for farming equipment or detached structures, while urban homeowners might prioritize coverage for theft or vandalism. Rural areas may also face higher premiums due to limited emergency services access.
FAQs about Best Homeowners Insurance in Iowa
When it comes to protecting your home in Iowa, understanding your homeowners insurance options is crucial. Here are some frequently asked questions to help you navigate the best homeowners insurance policies in the state.
1. What factors affect homeowners insurance rates in Iowa?
In Iowa, insurance companies consider several factors when determining rates, including the age of your home, its location, construction materials, and your personal claim history. Environmental factors, such as proximity to water bodies or fire stations, can also play a significant role.
2. How much homeowners insurance do I need in Iowa?
The amount of homeowners insurance you need depends on the replacement cost of your home, which is the amount it would take to rebuild your home at current prices. It’s advisable to have a detailed assessment done to ensure your coverage matches the potential rebuild cost.
3. Are there common exclusions I should know about in Iowa homeowners insurance policies?
Yes, common exclusions in most Iowa policies include damage from earthquakes, floods, and normal wear and tear. For flood protection, homeowners typically need to purchase separate flood insurance through the National Flood Insurance Program (NFIP).
4. Can I get discounts on homeowners insurance in Iowa?
Many insurers offer discounts for various reasons, such as having a burglar alarm, a newer home, or being claim-free for several years. Bundling your homeowners insurance with other policies like auto insurance can also lead to significant savings.
5. What should I do if my insurance claim is denied?
First, review the denial letter to understand the insurer’s reasoning. If you disagree with the decision, you can file an appeal with your insurance company. Document all interactions and gather evidence that supports your claim. If unresolved, consider contacting the Iowa Insurance Division for assistance.
Conclusion
Finding the best homeowners insurance in Iowa takes time, but the effort is well worth it. By researching different providers, comparing quotes, and understanding your specific coverage needs, you’ll secure the best policy at a competitive price. Remember, the right insurance not only protects your home but also provides peace of mind.
References
For additional details and verification of the information presented in our guide on the Best Homeowners Insurance in Iowa, consider exploring the following reputable sources. These resources offer comprehensive insights into homeowners insurance options, industry standards, and regulatory frameworks, which can help you make an informed decision:
- National Association of Insurance Commissioners (NAIC) – Provides access to official regulatory information and insurance company reports across the United States. Visit NAIC
- Iowa Insurance Division – The official state resource for insurance regulations in Iowa, offering guidance on insurance laws and consumer rights. Explore the Iowa Insurance Division
- Consumer Reports – A trusted resource for unbiased insurance company reviews and ratings, helping consumers compare different homeowner insurance options. Read more at Consumer Reports
- Insurance Information Institute (III) – Offers a wealth of data on various types of insurance, including detailed guides on choosing the best homeowners insurance policies. Learn more from III
Each of these sources provides a wealth of information that can assist you in comparing and selecting the right homeowners insurance policy tailored to your needs in Iowa.
