Best home insurance companies in Iowa
There are dozens of homeowners insurance companies in Iowa and each one has strengths and weaknesses. Bankrate reviewed some of the best Iowa homeowners insurance companies based on average premium, customer satisfaction, discounts and coverage options.
|Home insurance company||Average annual premium for $250K liability||J.D. Power Score|
|Iowa Farm Bureau||$1,724||N/A|
American Family home insurance is more expensive than average, but Iowa homeowners can take advantage of endorsements for customized coverage plus generous discounts. Savings opportunities for being a loyal customer, renovating your home, insuring a new home and bundling policies can also help bring down insurance costs.
Learn More: American Family Insurance Review
Auto-Owners gets high ratings for overall customer satisfaction and financial strength. It is the cheapest provider on our list at an average annual premium of $909. With Auto-Owners, Iowa homeowners can purchase endorsements for more protection and qualify for discounts to get a lower rate.
Learn More: Auto-Owners Insurance Review
Iowa Farm Bureau
Iowa Farm Bureau is a small regional insurance provider that was founded in 1918. The company is known for offering comprehensive coverages, good discounts and affordable premiums for homeowners in Iowa. In order to get coverage, you need to purchase an Iowa Farm Bureau membership, which costs about $55 per year.
Nationwide is a household name for insurance. With Nationwide, Iowa homeowners can design a policy that fits their needs with endorsements, like better roof replacement coverage and brand new belongings coverage. The company also offers a long list of discounts, with savings for being claims-free, living in a gated community, having prior insurance and more.
Learn More: Nationwide Insurance Review
State Farm is the largest home insurance provider in the country with 18% of the market share. State Farm’s home insurance coverage is pretty standard and the company only offers a handful of discounts. However, State Farm stands out for offering great online tools and resources, including a highly-rated mobile app with claims reporting.
Learn More: State Farm Insurance Review
How much is homeowners insurance in Iowa?
The average cost of homeowners insurance in Iowa is $1,502 per year for a policy with $250,000 in dwelling coverage. For comparison, the average cost of home insurance in the United States is $1,477 per year. That means Iowa homeowners pay about 2% more than the average American.
Iowa home insurance is much cheaper than in neighboring states. For example, the average cost of home insurance in Nebraska is $2,787 per year, and in Missouri, the average premium is $1,961 per year. Because Iowa does not experience extreme weather often, the price of home insurance is less expensive.
Home insurance in Iowa
Iowa experiences natural disasters every once in a while, but it is a relatively safe state for homeowners. However, there are some losses to be aware of. The best homeowners insurance in Iowa is that which protects you financially from certain risks without breaking your budget.
Home insurance coverage options in Iowa
Homeowners in Iowa should purchase home insurance to protect their property against common risks. Here are some of the most notable threats to homes in Iowa:
- Flooding: Flooding is incredibly common in Iowa. In 2019 during the state’s flood season, flooding between Iowa and its neighbor, Nebraska, caused more than $4 billion in economic losses and around $1 billion in claims.
- Tornadoes: Iowa is located near Tornado Alley, where a majority of tornadoes occur in the United States. In 2019, there were 54 tornadoes recorded in Iowa, resulting in two injuries and one fatality.
- Blizzards: The winter months in Iowa are cold and blizzards are common. Blizzards can cause home damage due to the weight of snow and ice and thawing snow can lead to flooding.
Recommended coverages 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).
- 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.
- 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.
Frequently asked questions
What is the cheapest homeowners insurance in Iowa?
The cheapest homeowners insurance in Iowa is different for every homeowner. Home insurance prices are based on personal factors, like your ZIP code, age, credit score, claims history, the size of your home and more. Auto-Owners is the cheapest provider on our list, but it may not be the cheapest provider for everyone. And for some homeowners, the cheapest provider may not fit their specific needs for home insurance coverage. Speak to a licensed agent and compare multiple quotes to find the right fit for you.
How much home insurance do I need?
As a general rule of thumb, it is recommended to have enough dwelling insurance to cover the cost of rebuilding your home and enough personal property coverage to replace your personal items. If you need coverage for specific situations, like flooding or earthquakes, consider adding endorsements for more protection.
Is homeowners insurance required in Iowa?
No, homeowners insurance is not legally required in Iowa. However, most mortgage lenders require homeowners to have a minimum amount of insurance in order to get a loan.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers 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 will differ.