Best Landlord Insurance in Iowa

Although insurance might not be fun to think about, it’s extremely important to have as a rental property owner in Iowa. Homeowners insurance doesn’t cover tenant-occupied homes. Thus, landlords need a type of landlord insurance.

At times, finding the right policy is easier said than done. To make the process of finding Iowa landlord insurance easier, read our guide that describes average rates, cost factors, and coverage in the state. We’ll equip you with the information you need to find the best landlord insurance in Iowa.

Landlord insurance in Iowa costs about $1,634 per year for a $200,000 house, $1,936 per year for a $300,000 house, and $2,512 per year for a $400,000 home.

For reference, Iowa’s average landlord rates are slightly lower than Illinois’, and on par with Minnesota’s, so Iowa’s rates are reasonable compared to nearby locations.

Generally, landlord insurance premiums are 15% to 25% higher than homeowners insurance premiums on the same homes. We calculated average landlord insurance costs in Iowa at different home values using this statistic and the numbers from our Iowa homeowners insurance page.

You can see that the average landlord insurance in Iowa increases as home value increases. This is always the case, as larger, more expensive rental properties need more insurance coverage. Many factors affect average rates, but know that more costly homes will typically have higher premiums than smaller ones.

Landlord insurance is officially a type of dwelling fire policy, (DP) which is a more versatile form of home insurance that can cover a greater variety of risks than a homeowners insurance plan, formally known as an HO-3. 

The coverage offered by landlord policies is similar to an HO-3 but not quite the same. They are:

There are three different types of rental property insurance in Iowa. Some exclude coverage areas, lowering premiums but exposing your property to more damage.

A DP-1 is the most basic rental property coverage you can get. It covers the fewest perils, or sources of damage. DP-1s will also only protect your property at actual cash value, which means your provider will deduct depreciation before reimbursing you for anything during a claim. This lowers your payout.

DP-2 insurance policies cover more perils than a DP-1. For example, DP-2s typically cover theft, vandalism, water damage, and falling object damage, which are usually excluded from DP-1s. DP-2s may also cover your losses at replacement cost. Both DP-1s and DP-2s may exclude liability and personal property coverage.

A DP-3 insurance policy offers the best protection for your rental property but comes at the steepest price. A DP-3 is most similar to an HO-3 homeowners insurance policy. It often includes liability and personal property coverage by default and can have higher coverage limits.

The best Iowa landlord insurance will vary by person, depending on their coverage needs and budget. You need to understand how much protection your property needs before comparing quotes from several insurers.

Your relationship with your rental property will help determine the best policy for you. For example, if you live on-premises or nearby and can regularly verify the condition of your rental, you may opt for less coverage than a landlord who lives out of state.

You can adjust the coverages within your policy to fit your budget. For instance, you should ensure you have liability coverage if you’ve got several tenants throughout the year on short-term rentals. Or, you can drop other structures and personal property coverage if neither is at your rental.

To get the best Iowa landlord insurance, you can also add endorsements if your budget allows. Carriers offer optional coverage for water backup, sinkholes, equipment breakdown, and more. You may also want to guard against increased rebuild costs with an inflation guard, or ordinance or law coverage.

You should have some ideas of your coverage needs before getting quotes. This way, you can be educated when consulting with a provider or agent, and they can better help you. Before shopping, you may also want to compare reviews and rates.

According to our analysis, IMT Insurance offers the cheapest landlord insurance in Iowa, although it ultimately depends on your home value, location, and many other factors.

We examined average rates from some of the most popular insurers in Iowa. Look at their averages on homes at two common home valuations below.

IMT differs from the other names on the list because IMT is a regional provider headquartered in Des Moines. The rest of these landlord insurance companies in Iowa are well-known nationwide providers, so getting quotes from both types of insurers may be worthwhile for potential differences in rates and customer service. But, remember that cheap landlord insurance in Iowa isn’t always the best coverage.

Carriers analyze many variables to determine landlord insurance rates in Iowa. The most important considerations involve your property features and claim history.

Your landlord rates will vary depending on the type of dwelling you have. It changes your risk level and coverage needs. For example, a small apartment or condo unit with no other structures will need less coverage than a single-family home with a yard.

Multi-family homes and apartment buildings with a lot of square footage and several tenants may need the most coverage and thus have the highest rates.

Providers will also want to know about the vacancy of your rental. Rentals that are vacant more often, such as short-term rentals instead of long-term leases, may raise your premiums. Vacant homes have higher rates because the odds of an issue that can cause property damage going unnoticed are higher.

Certain features on your property can also raise rates. For example, attractive nuisances like pools or trampolines raise your liability risk. Wood stoves or furnaces increase your fire risk. 

The materials with which your home was built also play a factor. Houses made of brick or concrete are more wind-resistant and less fire-prone than wooden frame homes. As a result, masonry homes may have lower premiums.

Landlord insurance isn’t required by law in Iowa, but mortgage lenders will require insurance on your rental property if it has a mortgage.

Rental properties with mortgages will need insurance to satisfy the lender’s requirements. A landlord insurance policy will do this. Know that if you don’t get your own coverage, your lender can get insurance on your rental property for you, called force-placed insurance.

Force-placed insurance serves the lender, meaning it’s more expensive and less comprehensive than a policy you can get on your own. Be sure to acquire and maintain landlord insurance for rental property in Iowa.

Residential landlord insurance can cover rental properties ranging from condo apartment units to duplexes to whole apartment buildings. What it won’t cover is any rental property owned by a business or trust. Any time business is involved, you need a type of commercial insurance. 

Comparing quotes from several providers is essential when getting landlord insurance in Iowa. An online quoting tool that compares several providers’ policies is beneficial and time-saving.

We’re Clovered, an independent insurance agency specializing in property coverage. We were built to simplify insurance. You can get an Iowa rental property insurance quote anytime on our website, but if you’d rather consult a licensed agent while quoting, you can call us at 833-255-4117 during business hours. Feel free to email us as well at [email protected] if you have any questions.