Your Cedar Rapids home should be a place where you feel safe and protected. It is also one of the biggest purchases you will probably make in your lifetime, which is why you will want to protect your home with a homeowners insurance policy. Iowa homeowners insurance is designed to cover your home and belongings in the event of damage or catastrophe. However, you should not have to break the bank just to get the peace of mind that comes with a great homeowners policy.
The average insurance rate for a homeowners policy in Cedar Rapids, Iowa, with dwelling coverage of $250,000, comes in at $1,117 per year. By comparing the coverages available, consumer satisfaction ratings, discounts offered and 2020 Quadrant Information Services pricing data, we have evaluated some of the best cheap homeowners insurance carriers in Cedar Rapids.
Best cheap home insurance companies Cedar Rapids
With so many homeowners insurance providers offering similar coverage, it can be hard to know what company to choose. Using factors like consumer ratings, discounts offered and average price for a $250,000 dwelling, the following table is a list of our recommendations for the best cheap home insurance in Cedar Rapids to get you started.
|Home insurance company||Average annual premium for $250K dwelling||JD Power score|
*USAA is not eligible for official ranking with J.D. Power due to eligibility restrictions
With the lowest average premium of our reviewed providers for a homeowners policy in Cedar Rapids at $810 a year and the second highest customer satisfaction rating nationwide according to the 2021 J.D. Power Claims Satisfaction Study, Auto-Owners tops our list for best cheap homeowners insurance in Cedar Rapids. Additionally, Auto-Owners offers a variety of discounts and may provide a lower premium for owners who have no loss history and a good payment history. On top of the standard homeowners coverage, insureds can pick from a selection of optional additions like equipment breakdown and identity theft expense coverage. Plus, there are several independent agents in or around Cedar Rapids making it a great option for homeowners who like to sit down and speak with a professional about their options.
Already a highly recognized name in the insurance world, Allstate has the second lowest average annual premium in Cedar Rapids coming in at just $844 a year. Allstate offers a unique Claim Rateguard feature that prevents premium rates from increasing just because you have a loss, which may be the perfect selling point for homeowners concerned about rate increases. If you have never had a homeowners claim, you may be eligible not only for a claim-free discount but a 5% return every year that you keep your policy claim free. Plus, Allstate offers unique policy additions such as yard and garden insurance, musical instruments coverage and more.
In the 2021 J.D. Power Claims Satisfaction Study, consumers rated Nationwide at a 892/1,000 which is several points higher than the industry average. The average annual premium offered for Nationwide homeowners policies also comes in at less than the Cedar Rapids average at only $966 a year. The Nationwide Brand New Belongings feature may be interesting to homeowners concerned about the depreciation value of their possessions during a loss because the feature offers to repair or replace at cost no matter the age or condition of your possessions. Nationwide is also known for conducting annual On Your Side reviews to evaluate whether you are getting the right discounts and have the right coverage for your individual situation—a feature perfect for the homeowner who prefers to update their coverage on a regular basis.
Although the average annual homeowner premium comes in slightly higher than other companies, at $982 a year, the premium is still lower than the city average making USAA an attractive option to consumers. With a USAA homeowners policy, you may be eligible for multi-policy discounts, home security discounts, and claims-free discounts. Current or former members of the military may also be interested in the military uniforms and equipment coverage option. USAA has a convenient 24-hour line making it easy to ask questions, get a quote, or file a claim.
Although the Travelers Insurance homeowners policy cost is highest on our list, the average annual premium of $1,086 still falls beneath the average in Cedar Rapids. Homeowners who also insure their cars through Travelers could potentially save up to 15% on their homeowners policy. New home buyers may also be interested in the home buyer discount, especially if their home has been certified as a “green home” or contains protective devices which could offer additional savings. It is easy to start a quote online, over the phone or meet with a local Cedar Rapids agent and there is a convenient 24-hour claims center available for emergencies.
Cedar Rapids home insurance considerations
In Iowa, homeowners insurance is not legally required. However, if something happens and you do not have a policy in place, you may lose out on everything you have invested in your home. Most banks will require a policy if you have a mortgage on the property since a loss could happen at any time. In Cedar rapids, wind and flood damage from storms and tornadoes are fairly common, with a potential for a high economic loss. In addition to your standard policy, you may also want to consider these optional coverages.
- Flood insurance: In Iowa, flood insurance is not covered under a standard homeowners insurance policy. Because flood losses do occur in Cedar Rapids, you may want to consider obtaining a flood insurance policy through the National Flood Insurance Program.
- Sewer and drain back-up: Also known as “water backup” or “sump pump” coverage, sewer and drain back-up coverage provides protection in the event your sump pump fails. Despite being an unfortunate and very messy event that could happen to any home, no matter the location, this type of loss is generally not covered under a standard homeowners policy. However, this coverage is usually inexpensive and may be well worth the added cost.
- Extended replacement cost: Ask about upgrading your policy to include extended replacement cost which acts as a cushion percentage on top of the value of your dwelling to repair it back to its original state. This can be helpful after catastrophic losses when everyone is trying to repair their homes at the same time driving the cost of supplies and materials higher than normal.
Home insurance discounts in Cedar Rapids
Whenever you are obtaining a quote for a homeowners policy, be sure to review each company’s available discounts. Discounts can provide significant savings on your annual premium and, in some cases, adding a feature to your home—like a security system—to qualify for a discount could be a worthwhile purchase if the discount is substantial.
- Multi-policy discount: Most insurance companies offer a multi-policy discount to encourage you to carry all of your insurance coverages in one place. If you already have car insurance at a particular company, it may be worth getting a quote for your homeowners insurance through the same carrier, or vice versa. Typically, the discount would apply to all policies.
- Protective devices discount: A protective devices discount may be available if you have modern protective devices in your house that could help mitigate losses such as smoke detectors, deadbolt locks, sprinkler systems or a home security system.
- Full pay discount: Although this discount has more to do with how you pay for coverage than what you have in your home, typically paying a policy in full for the whole year can save you money on monthly or quarterly installment fees. In some cases, an insurance carrier may even offer a percentage discount for paying in full.
Frequently asked questions
What is the best home insurance company?
When shopping for homeowners insurance, you should obtain quotes from several different companies and review factors like customer satisfaction ratings, premium cost and available discounts to determine which company is right for you. However, based on a high customer satisfaction rating and a lower-than-average annual premium, Auto-Owners, Allstate, Nationwide, USAA and Travelers are our pick for best homeowners insurance in Cedar Rapids, IA.
How much does home insurance in Cedar Rapids cost?
Based on a $250,000 dwelling, the average insurance premium in Cedar Rapids is $1,117 per year. However, discounts, claims history, coverage amount and additional coverages can all impact your individual rate.
How much home insurance do I need in Cedar Rapids?
Although most agents will recommend obtaining insurance in the amount of your home’s replacement cost, every homeowner will need a different amount of coverage depending on the size of their home and the amount of personal property they possess. It is best to review your individual needs with an experienced agent when obtaining a quote. Because you may face storm losses in Cedar Rapids, you should also ask about optional coverages such as flood insurance.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and homeriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Rates are determined based on 2020 Quadrant Information Services data.