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Best homeowners insurance in Iowa for 2023

According to Bankrate's extensive research, the best home insurance in Iowa is being written by Allstate, American Family, Auto-Owners, Farmers and Travelers.

Written by
Mary Van Keuren
Edited by
Mariah Posey
Updated Apr 06, 2023
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Compare the best homeowners insurance companies in Iowa

The annual annual average rate for Iowa home insurance is $1,318, which works out to roughly $110 a month. Several of our choices for the best Iowa homeowners insurance have average rates that are below the state average. Your own rate is based on multiple factors that are unique to you and your property, from your credit rating to the neighborhood where you live. 

We looked at a range of indicators to determine the best Iowa homeowners insurance companies. Average rates, as determined by Quadrant Information Services, played an important role, but so did third-party rankings for customer service from J.D. Power and financial financial stability ratings from AM Best. We also reviewed available coverage options and discounts, and looked carefully at how user-friendly websites and apps were. The resulting data was used to determine a Bankrate Score from zero to five. 

Allstate
3.5
Bankrate Score
Info
AM Best
A+
J.D. Power score
815
/1,000
Average monthly premium
$98
Average annual premium
$1,173
 Get a quote
Travelers
3.3
Bankrate Score
Info
AM Best
A++
J.D. Power score
794
/1,000
Average monthly premium
$113
Average annual premium
$1,361
 Get a quote
Auto-Owners
3.2
Bankrate Score
Info
AM Best
A++
J.D. Power score
825
/1,000
Average monthly premium
$87
Average annual premium
$1,043
 Get a quote
American Family
3.1
Bankrate Score
Info
AM Best
A
J.D. Power score
842
/1,000
Average monthly premium
$78
Average annual premium
$938
 Get a quote
Farmers
2.9
Bankrate Score
Info
AM Best
A
J.D. Power score
792
/1,000
Average monthly premium
$152
Average annual premium
$1,823
 Get a quote
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Top five insurance companies in Iowa

Best for digital tools

3.5 Bankrate Score
JD Power: 815 AM Best: A+

Average annual premium

$ 1,173 for $250k dwelling
Allstate Review

Explore Bankrate's review

Why Allstate made our list: While Allstate has local agents available throughout the state, it also features a robust array of digital tools, including a highly-rated smartphone app and a user-friendly website, both of which allows you to manage your policy online. The website features informational articles that help you understand your home and its insurance better, and there are handy features like a tool that lets you enter your ZIP code and see what the most common claims are for your neighborhood.

Who Allstate may be good for: If you like handling your insurance business online, Allstate is worth looking at. You can get a quote, pay your bill and file and track claims through the app and website with ease.

Best for unique discounts

3.3 Bankrate Score
JD Power: 794 AM Best: A++

Average annual premium

$ 1,361 for $250k dwelling
Travelers Review

Explore Bankrate's review

Why Travelers made our list: Although Travelers doesn't have the lowest average rates among our chosen insurers, it does feature several discounts that may help you secure a low premium from the company. There are discounts for bundling, being claim-free and installing protective devices such as smoke detectors or security systems. One unique discount is for homeowners who own green homes. The green home endorsement provides additional protection if you wish to rebuild to higher environmental standards after a covered loss. 

Who Travelers may be good for: If you live in a certified green house, Travelers may be an option to consider. Its green home discount and endorsement, along with other endorsement options and discounts, may allow you to build a robust policy that meets your specific needs.

Best for unique endorsement options

3.2 Bankrate Score
JD Power: 825 AM Best: A++

Average annual premium

$ 1,043 for $250k dwelling
Auto-Owners Review

Explore Bankrate's review

Why Auto-Owners made our list: With Auto-Owners, Iowa homeowners may purchase several endorsements for more protection, such as water backup, equipment breakdown and service line protection, which covers underground service line damage caused by wear and tear or other perils. The company also offers an extensive list of discounts, including a green discount, backup generator discount and a mortgage-free discount. Quotes are not available online, but it has local agents available in most of Iowa's cities.

Who Auto-Owners may be good for: If you want to be able to personalize your policy to meet your specific needs, Auto-Owners gives you the tools to do so. Its extensive list of endorsements allows you to add robust functionality to your policy in a variety of ways.

Best for low average rates

3.1 Bankrate Score
JD Power: 842 AM Best: A

Average annual premium

$ 938 for $250k dwelling
American Family Review

Explore Bankrate's review

Why American Family made our list: AmFam, as it is commonly known, shows up the low end for average company rates in Iowa on our list, with an average of $938 annually for $250,000 of dwelling coverage. That's almost $400 below the state average, making it a good option if you are working with a tight budget. The company offers a handful of endorsements including matching siding protection, hidden water damage and credit theft protection, and there are also savings opportunities including a loyalty discount and a generational discount if your parents are also policyholders.

Who American Family may be good for: Young adults who just starting out with their first home may appreciate AmFam's low average rates, and they may also be eligible for the generational discount or others that could bring the rate down even more. 

Best for customizable packages

2.9 Bankrate Score
JD Power: 792 AM Best: A

Average annual premium

$ 1,823 for $250k dwelling
Farmers Review

Explore Bankrate's review

Why Farmers made our list: Farmers offers Iowa homeowners all the usual types of coverage, including dwelling, personal property and liability insurance. The company's Farmers Flex Personal Home policy goes beyond that, though. This package adds in guaranteed replacement cost, building ordinance or law coverage and a fortified roof upgrade, which allows you to rebuild your roof after a covered loss to a higher standard.

Who Farmers may be good for: Farmer's Flex plan is particularly robust and may be a good option if you want more than just a standard, cookie-cutter policy. There are ample endorsements available through the Flex plan that can provide extra protection for your home and property.

How Bankrate chose the best home insurance companies in Iowa

When looking for the best Iowa home insurance, Bankrate's insurance editorial team assessed multiple factors for all major Iowa home insurance companies, including customer service rankings, financial stability, average rates, digital tools and more. After compiling and assessing the data, a Bankrate Score was calculated for each company on a five-point scale to help homeowners choose the best option for their insurance. The higher a company’s score, the better it performed across the various Score categories.

How much is home insurance in Iowa?

The average cost of homeowners insurance in Iowa is $1,318 per year for a policy with $250,000 in dwelling coverage. For comparison, the average cost of home insurance in the United States is $1,428 per year. That means Iowa homeowners pay about eight percent less than the average American homeowner.

Iowa home insurance is much cheaper than in neighboring states. For example, the average cost of home insurance in Nebraska is $2,951 per year, and in Missouri, the average premium is $1,769 per year. Because Iowa does not experience extreme weather often, the price of home insurance is less expensive.

Allstate
$150K
$921
$250K
$1,173
$350K
$1,381
$450K
$1,569
$750K
$2,202
American Family
$150K
$753
$250K
$938
$350K
$1,119
$450K
$1,310
$750K
$1,870
Auto-Owners
$150K
$805
$250K
$1,043
$350K
$1,274
$450K
$1,491
$750K
$2,225
Farmers
$150K
$1,220
$250K
$1,823
$350K
$2,392
$450K
$2,963
$750K
$4,708
Travelers
$150K
$913
$250K
$1,361
$350K
$1,766
$450K
$2,102
$750K
$3,306
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Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
Insurance Disclosure

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Generally, home insurance is cheaper in areas where claims are less likely to be made. If your city doesn't experience natural disasters very often, you will probably pay less for your insurance than a city where there are frequent damaging storms. These cities in Iowa all have average rates that are below the state average:

  • Bettendorf: $1,179 — 11 percent below the state average
  • Epworth: $1,180 — 10 percent below the state average
  • Lisbon: $1,182 — 10 percent below the state average
  • Durango: $1,183 — 10 percent below the state average
  • Mount Vernon: $1,187 — 10 percent below the state average

Cities where insurance is more expensive tend to have more regular occurrences of covered perils. Since insurers know where claims are more likely to occur, they build in a financial safety net for themselves by increasing rates. These Iowa cities have higher average rates than the state average:

  • Elk Horn: $1,496 — 14 percent above the state average
  • Somers: $1,496 — 14 percent above the state average
  • Blockton: $1,495 — 13 percent above the state average
  • Prescott: $1,495 — 13 percent above the state average
  • Harris: $1,494 — 13 percent above the state average

How to find the best cheap home insurance in Iowa

Even though Iowa's average rates are lower than the national average, it doesn’t hurt to save additional money when purchasing a policy. Fortunately, there are some solid strategies you can use to help you lower your premium cost, including the following:

  1. Shop around: Every insurer determines premium rates using their own proprietary algorithms, so you will likely get different quotes from each insurer, even if the quotes are for the same levels of coverage. By getting quotes from three or four insurers, you can choose the one who gives you the best offer.
  2. Work on your credit: Actuarial data has shown that homeowners with poor credit histories are more likely to file claims, causing insurers to pass on higher rates to those insureds to compensate for the increased risk. If you are able to maintain a positive credit history for longer, you’re likely to see a better rate.
  3. Repair or replace your roof: An aging or damaged roof can lead to costly claims, while a new roof is better able to withstand strong winds or storms without damage. For this reason, insurers often ask you about the age of your roof when you request a quote, and are more likely to give you a favorable rate if your roof is on the newer side.
  4. Bundle your policies: A bundling discount is the most common discount amongst insurers. If you have more than one policy with the same insurer, you could see a reduced premium. Most commonly, bundling is done with auto and home insurance, but if you have another type of policy, such as renters or life, ask your agent if there is a discount available.

Common home insurance discounts in Iowa

There are usually various ways to save on insurance and most insurers offer a handful, many of which can be easy to earn. Here are a few you may see that can have an impact on your premium rate:

Home insurance coverage types in Iowa

Having home insurance can provide financial protection and peace of mind. Iowa homeowners may be required by their mortgage company or a licensed agent to consider purchasing at least a standard policy, which includes dwelling, personal property, liability, medical payments and loss of use coverage. For more protection, homeowners may also want to consider the following add-ons:

  • Flood insurance: Standard homeowners insurance does not cover flood damage. Separate flood insurance policies are available through the National Flood Insurance Program (NFIP). One indicator that you might need flood insurance is whether or not you live in a flood zone. You can find out at FEMA's Flood Map Service Center.
  • Dwelling replacement cost coverage: If your home gets severely damaged or destroyed in a covered peril, dwelling replacement cost coverage will pay to rebuild your home back to its original value, without depreciation factored in. Some insurers include replacement cost in their basic policies while others feature it as an added endorsement. Ask your agent if your policy includes replacement cost or if your coverage is for actual cash value.
  • Water damage coverage: Water damage coverage, which usually comes with sump pump backup coverage, will cover any damage caused by frozen pipes, clogged pipes or faulty faucets. Damage from sump pump backup is not included in standard HO-3 policies, which are the most common type of homeowners insurance. 
Insurance Home
News that affects Iowa homeowners

A recent study by the University of Iowa confirms that flooding in the state is increasing due to the effects of climate change. Iowa, Nebraska and other Midwestern states have been feeling the effects of a phenomenon that the researchers call the "Midwest water hose."

The Midwest water hose happens when moisture from the Gulf of Mexico moves north and dumps heavy rainfall throughout the Midwest. According to the researchers, it contributed about 70 percent to the total precipitation in the Midwest in 2019, which was more than double the historic average. 

As the state is sandwiched between the Missouri and Mississippi rivers, Iowa farmers were especially hard hit by the fire hose effect, but homeowners throughout the state also experienced higher-than-usual amounts of flooding, especially in neighborhoods that bordered a body of water, even a minor one.

Frequently asked questions

Written by
Mary Van Keuren
Insurance Contributor

Mary Van Keuren has written for insurance domains such as Bankrate, Coverage.com, and The Simple Dollar for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including Reviews.com and Slumber Yard. Prior to that, she worked as a writer in academia for several decades.

Edited by
Mariah Posey
Insurance Editor