If you’re one of the 71.3% of Iowans who own their home, you know that home insurance is a significant—but necessary—cost. Your house is a complex structure with intricate systems for wiring, plumbing and heating, and a lot can go wrong with it. To avoid getting a large bill for repairs, you’ll need to have the best Iowa homeowners insurance to provide comprehensive coverage in the event of a catastrophe.
The average premium for an Iowa homeowners insurance policy was $964 in 2017. Your cost will vary depending on factors that range from the size and age of your home to how far it is from a fire hydrant.
When shopping for home insurance, look at factors such as customer service, range of coverage and potential add-ons (endorsements) that allow you to customize your coverage to best suit your needs.
Best home insurance in companies in Iowa
Some of the best Iowa home insurance options include:
- American Family: This company offers a wider-than-usual range of endorsements and savings options to allow you to customize your coverage and reduce your premium.
- Auto-Owners offers individual agents, which is ideal for people who want a dedicated person to talk to if any questions or concerns arise. You can tailor your policy with add-on coverage and discounts in several categories.
- Iowa Farm Bureau: Unlike our other options, this is a smaller regional insurer that is deeply engaged in Iowa insurance needs and knows the state and its homeowners well.
- Nationwide: offers excellent customer service, earning an 84 on Consumer Reports reader score, and has a reputation for paying out quickly when you make a claim.
- State Farm: State Farm’s informative website is worth exploring if you’re new to insurance. It has the best online quote tool we’ve seen. The company ranks high with most rating organizations.
To find the best homeowners insurance companies in Iowa, we reviewed the rankings given by organizations such as Consumer Reports, J.D. Power and AM Best, which looks at the financial strength of each company. We checked out online customer reviews and explored home insurance companies’ websites. Lastly, we tried out the online quote tools for each company, assessing their ease of use and cost of the final quoted premium.
|Consumer Reports reader score||J.D. Power rating||AM Best financial strength rating||Other types of Insurance available|
|American Family||79||3 out of 5||A||Renters, condo, farm/ranch, auto, motorcycle, snowmobile, boat,business, life, umbrella|
|Auto-Owners||89||3 out of 5||A++||Condo, renters, mobile home, umbrella, farm, pet, auto,motorcycle, motorhome, boat, trailer, life, business|
|Iowa Farm Bureau||N/A||N/A||N/A||Condo, renters, Auto, life, farm/ranch, health, business|
|Nationwide||84||3 out of 5||A+||Renters, condo, auto, motorcycle, snowmobile, classic car, ATV,RV, boat, life, pet, dental, umbrella, travel, wedding, identity theft|
|State Farm||85||3 out of 5||A++||Condo, renters, auto, boat, motorcycle, motorhome, health,disability, life, liability, small business|
Average homeowners insurance cost in Iowa
On average, Iowans pay less than many states for home insurance: with a $964 average premium, it ranks 36th in the nation for homeowners insurance.
The average cost to purchase a house in Iowa in 2018 was $152,000. We asked our top Iowa homeowners insurance companies to give us a premium cost for a home at that price point in Des Moines, with $250K personal property coverage and $300K in personal liability. The quotes ranged from a high of $2,114 annually at State Farm to $1,504 at Nationwide.
But that doesn’t tell the whole picture. At State Farm, for example, this quote is reduced significantly, to $1,374, if you bundle your home insurance policy with auto coverage. Other discounts may be available with each company, depending on the coverage you choose.
The take-away? It pays to talk to an experienced agent who can help you find additional discounts and may be able to suggest add-ons that will customize your coverage to better suit you and your home (flood insurance, for example, if you are in a floodplain).
|State||Average annual premium||National rank of premiums from highest tolowest|
Home insurance coverage options in Iowa
The most common type of homeowners insurance policy is called an HO-3 policy, and it may contain any or all of these coverages:
- Dwelling: This aspect of insurance coverage will pay for repairs or rebuilding of your home and any structures attached to it.
- Other structures: This coverage will pay for repairs or rebuilding of non-attached structures such as a garage or gazebo.
- Personal property: Personal property insurance reimburses you for the loss of your possessions, including electronics, furniture, clothing and appliances, even if they aren’t at your house (say, for something stored at an off-site storage unit).
- Loss of use: This pays for your living expenses, such as hotel costs, while your home is being repaired.
- Personal liability: Personal liability pays for your financial loss if you are sued by someone who is injured on your property.
- Medical payments: This covers medical bills for anyone hurt on your property or by your pets.
Although these coverages can be applied to most perils, such as fire, weather damage or theft, one thing that is not covered under most policies is flood damage. Your agent can enroll you in flood insurance through the National Flood Insurance Program, but it is an additional cost.
Is it worth it? It may be if you live in a flood plain. To find out if you do, talk to your agent or check out FEMA’s Flood Map Service Center, which allows you to enter an address to find out if you are likely at risk of flooding.