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Best homeowners insurance companies in Iowa for 2024

Updated May 13, 2024
Research by Bankrate revealed that Allstate, Travelers and Auto-Owners are some of the best home insurance companies in Iowa.
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Compare the best homeowners insurance companies in Iowa

The annual average rate for Iowa home insurance is $1,881, which works out to roughly $157 a month. Several of Bankrate’s insurance editorial team’s choices for the best Iowa homeowners insurance have average rates that are below the state’s. However, your exact premium is based on multiple factors that are unique to you and your property, from your credit history to the neighborhood where you live.

We looked at a range of indicators in selecting the best Iowa homeowners insurance companies. Average rates, as provided by Quadrant Information Services, played an important role, but so did third-party rankings for customer service from J.D. Power and financial strength ratings from AM Best. We also reviewed available coverage options and discounts and considered the user-friendliness of carriers’ websites and apps. Our analysis is reflected below in our proprietary Bankrate Scores on a scale from 0.0 to 5.0.

Insurance company J.D. Power Average monthly premium Average annual premium
809
/1,000
$187
$2,244
790
/1,000
N/A
N/A
834
/1,000
$128
$1,535
813
/1,000
$138
$1,653
800
/1,000
$219
$2,628
*Premiums are for $300K in dwelling coverage

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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.

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.

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Bankrate's trusted insurance industry expertise

Read our full methodology

The home insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers information they need to make educated decisions when shopping for home insurance.

46

years of industry expertise

122

carriers reviewed

34.5K

ZIP codes examined

1.2M

quotes analyzed

The top 5 home insurance companies in Iowa

Best for digital tools

Allstate

4.2

Rating: 4.2 stars out of 5

Avg. premium for $300K dwelling

$187/mo

Avg. premium for $300K dwelling

$2,244/yr

Customer satisfaction

809/1,000

Best for unique discounts

Travelers

4.1

Rating: 4.1 stars out of 5

Avg. premium for $300K dwelling

Not available

Avg. premium for $300K dwelling

Not available

Customer satisfaction

790/1,000

Best for unique endorsement options

Auto-Owners

4.6

Rating: 4.6 stars out of 5

Avg. premium for $300K dwelling

$128/mo

Avg. premium for $300K dwelling

$1,535/yr

Customer satisfaction

834/1,000

Best for low average rates

American Family

4.2

Rating: 4.2 stars out of 5

Avg. premium for $300K dwelling

$138/mo

Avg. premium for $300K dwelling

$1,653/yr

Customer satisfaction

813/1,000

Best for customizable packages

Farmers

3.6

Rating: 3.6 stars out of 5

Avg. premium for $300K dwelling

$219/mo

Avg. premium for $300K dwelling

$2,628/yr

Customer satisfaction

800/1,000

Additional Iowa home insurance companies to consider

USAA

USAA

Who this may be best for

Homeowners who want a solid choice for active-duty military members, veterans and their immediate family members.

Although USAA only sells insurance to military families, it may be worth looking at if you fit its eligibility criteria. It scores very high on J.D. Power's Customer Satisfaction Index, suggesting that the company places a high emphasis on superior customer service. This is partly why it was a 2023 Bankrate Award winner (tied with Allstate) for Best Home Insurance Company Overall. It has a robust assortment of coverage options, including some (i.e., coverage for uniforms) that are geared toward military needs. USAA also has the highest possible rating for financial strength from AM Best.

Nationwide

Nationwide

Who this may be best for

Homeowners looking for opportunities to bundle their coverage.

Nationwide offers a range of standard and optional coverage types that may make it a good choice for some Iowa homeowners. The company offers numerous bundling options, so if you would just as soon handle all your insurance business with one company, Nationwide might be a good fit for you. It offers a number of endorsements to allow for policy customization, including its Better Roof Replacement plan, which helps pay for stronger and safer roofing materials after a covered loss. Nationwide scored above average in J.D. Power's U.S. Insurance Digital Experience Survey for service but was slightly below average according to its customer satisfaction index.

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.

Cheapest home insurance companies in Iowa

Consider looking at one of the following insurers when you are searching for affordable coverage. They have a reputation for writing reasonably priced policies, and our research shows that each company's average rates are below the state average.

Carrier Monthly premium for $300k coverage Annual premium for $300k coverage Savings vs state avg. for $300k coverage
$98
$1,175
- $706
$112
$1,347
- $534
$128
$1,535
- $346
Pekin
$130
$1,554
- $327
West Bend
$132
$1,589
- $292

How to get cheap Iowa home insurance

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:

  • Shop around: Gather quotes from at least three to four insurers since each uses a proprietary formula to determine premiums, which can vary significantly. Comparing multiple quotes allows you to choose the best offer.
  • 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.
  • 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.
  • Bundle your policies: A bundling discount is the most common discount offered by home insurers. If you have more than one policy with the same company, 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.

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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.

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.

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Best home insurance discounts in Iowa

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

Statistics show that home fires are more common when someone smokes in the home. Therefore, you may earn a small discount from some insurers if you and others living in your house are non-smokers.
Insurers like anything that makes a home safer, so installing devices like smoke detectors, alarm systems or sprinkler systems is likely to earn you a reduced premium.
If you have purchased your home within the last 12 months, some insurers will offer you a small discount on your policy.
Purchasing a policy online rather than through an agent could mean saving on your premium. Going paperless with e-billing and agreeing to receive electronic policy documents might also generate a discount.
If you go without filing a claim for a certain amount of time — often three to five years — you could earn a significant discount from many carriers.

How to save on home insurance policy renewals in Iowa

Once you have found solid coverage for your property, you may want to stick with the same insurer for years to come. Here are a few ways you can have a smooth renewal process that protects your rate and allows your coverage to continue with no breaks.

  • Shop around at each renewal: Even if you're happy with your company, it may be worth asking for quotes from a few additional companies to see if someone can give you a better price for the same coverage.
  • Increase your deductible: if you can afford to, consider raising your deductible, which should lower your premium. Be cautious about doing this if you don't think you could pay a higher amount out of pocket following a claim, however.
  • Improve your credit score: Insurers reward those with better credit by offering lower rates, as they have a demonstrated ability to pay bills in full and on time and statistically file fewer claims. If you can improve your credit even a small amount, it may result in a lower premium.
  • Do an annual policy audit: Review your policy each year at renewal time, either on your own or with an agent, to make sure there aren't any new discounts you might be eligible for and to assess whether the coverage you have is still right for you. This is especially important if your circumstances have changed since last year.

How much is home insurance in Iowa?

The average cost of homeowners insurance in Iowa is $1,881 per year for a policy with $300,000 in dwelling coverage. For comparison, the average cost of home insurance in the United States is $2,153 per year. That means Iowa homeowners pay about 7 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 $5,588 per year, and in Missouri, the average premium is $2,065 per year. Because Iowa does not experience extreme weather often, the price of home insurance may be less expensive.

Iowa homeowners insurance rates by city

One of the factors that insurers take into account when determining your premium is location. Even within a single state like Iowa, there may be varying levels of risk depending on where you reside. Homeowners in urban areas, for example, may see higher rates due to the increased risk of theft or vandalism.

  • Dubuque: $1,700 per year — 15 percent below state average
  • Holy Cross: $1,712 per year — 15 percent below state average
  • Epworth: $1,718 per year — 14 percent below state average
  • Sherrill: $1,726 per year — 14 percent below state average
  • Durango: $1,733 per year — 14 percent below state average
  • Council Bluffs: $2,460 per year — 23 percent above state average
  • Mc Clelland: $2,437 per year — 22 percent above state average
  • Honey Creek: $2,424 per year — 21 percent above state average
  • Underwood: $2,421 per year — 21 percent above state average
  • Crescent: $2,419 per year — 21 percent above state average

*Rates are for $300,000 in dwelling coverage.

What does home insurance cover in Iowa?

Home insurance covers a list of standard perils, which include many of the most common types of disasters you might face in Iowa. For standard policies, these perils include the following, among others:

  • Fire and lightning: House fires, wildfires, fires started by lightning and smoke damage are all covered.
  • Vandalism or malicious mischief: You'll be covered if someone defaces or damages your property.
  • Theft: Your policy should cover you for stolen items or property damage that occurs during a burglary.
  • Water damage: Some types of water damage are covered, but it's important to note that flood damage is not covered by standard policies. You will need an optional flood policy for coverage from flood water damage.
  • Weight of snow, ice or sleet: Damage that is caused by heavy snow or ice falling on a house should be covered.
  • Explosions: If a furnace or water heater explodes, you should be covered.
  • Wind damage: Damage from tornadoes or other windstorms is covered by most policies. Some insurers include a separate deductible for wind damage, though.

Additional home insurance coverage types in Iowa

Having home insurance can provide financial protection and peace of mind, but it’s not required by law. However, Iowa homeowners with a mortgage may need to purchase at least a standard policy per their agreement with their lender. Standard policies typically include 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 or a private flood insurer. Flood risk is prevalent throughout Iowa, but the highest risk is in communities that border the Mississippi and Missouri rivers. An indicator that you might need flood insurance is whether or not you live in a flood zone. You can find out by visiting FEMA's Flood Map Service Center.
  • Dwelling replacement cost coverage: If your home gets severely damaged or destroyed in a covered event, 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 help cover any damage caused by 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.

Related content:

Common Iowa home insurance problems

The insurance market across the U.S. is increasingly competitive, with factors ranging from post-pandemic shortages to climate risk-induced weather patterns contributing to making insurers skittish about writing policies in some parts of the country. Here are a few of the issues that may face Iowa homeowners as they negotiate a volatile insurance market.

  • Supply chain issues: The COVID-19 pandemic served to highlight weaknesses in the supply chains that bring building materials to homeowners trying to repair or rebuild after a claim. The lack of availability of some items caused prices to increase, making repairs much more costly and leading to expensive claims.
  • Inflationary increases: According to a recent analysis from the Insurance Information Institute, cumulative home replacement costs have increased 45 percent since 2020, three times the U.S. inflation rate. Because of this, home insurance rates may continue to increase in coming years.
  • Inability to find coverage: Homeowners who live in areas that see a lot of natural disasters — such as tornadoes or hurricanes — may find that some carriers are not willing to write policies for them, leading to reduced carrier choices.
  • Exclusions: Some carriers may be accounting for the potential for increased claims by excluding certain perils from policies or requiring a separate deductible for some perils. This occasionally occurs when insurers have a separate wind deductible for homeowners in regions that see frequent tornadoes or hurricanes.

!

Recent news in Iowa homeowners insurance market

A 2021 study by the University of Iowa confirmed that flooding in the state is increasing due to climate shifts. 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 central U.S. 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

Methodology

Bankrate utilizes Quadrant Information Services to analyze May 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
  • Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
  • Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
  • Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
  • Coverage E, Liability: $500,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply. 

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Bankrate Scores

Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 
5
Rating: 5 stars out of 5
Overall Score
  • Cost & ratings 50%
  • Coverage & savings 30%
  • Support 20%
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
Written by
Mary Van Keuren
Contributor, Insurance

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 Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute