The Best Cheap Homeowners Insurance in Iowa

A home in Iowa must be ready to brace the elements, as thunderstorms, tornadoes, and heavy snowfall are all common, depending on the time of year.

Keep reading to learn the average rates in Iowa, what affects homeowners insurance costs in Iowa, and how to get the best homeowners insurance in Iowa.

The average cost of homeowners insurance in Iowa is about $2,533 for $300,000 of dwelling coverage. For comparison, this number is slightly higher than the average in Minnesota, at $2,325 per year, and about on par with the average in Illinois.

Keep in mind, though, that this number is just an average. Your rate will vary based on many factors in and out of your control. One of these essential factors is your home’s value, which is a major element in deciding how much insurance you need. Take a look at the table below of the rates for home insurance in the Hawkeye State at different dwelling coverage levels.

In addition to covering your home, Iowa house insurance covers the contents inside your house and your personal liability. The right home insurance is a wide-reaching safety net that has your back in many ways through different coverages.

Dwelling coverage is the part of your policy that protects the structure of your house. Your roof, walls, windows, floor, pipes, air conditioning, and more fall under your dwelling coverage. 

The amount of dwelling coverage you need is determined by the replacement cost of your home, which is how much it would cost to rebuild your house based on materials and labor expenses.

Other structures coverage financially protects features on your property not attached to your house. This includes sheds, fences, detached garages, gazebos, and more. Your other structures coverage limit is usually 10% of your dwelling coverage limit.

Personal property coverage guards your belongings, including clothes, electronics, furniture, tools, jewelry, small appliances, and more. Your personal property coverage can be at actual cash value or replacement cost. Insuring your belongings with actual cash value may help you score the cheapest home insurance in Iowa.

Loss of use coverage applies if you’ve been forced out of your house after damage from a covered peril. If a tornado, fire, or other covered loss renders your home uninhabitable, you’ll need to move out while your insurance company makes repairs. During your displacement, your carrier can cover some costs of food, housing, gas, and more through loss of use coverage.

Personal liability coverage comes into play if you’re found responsible for someone’s injury. If an injured person sues you – for example, after your dog bites and injures them – your liability coverage can cover their medical expenses and your legal fees. Liability limits start at $100,000 and can be increased up to $1 million. Increasing your liability coverage may make it more difficult to get affordable insurance in Iowa.

Medical payments coverage is like liability coverage but designed for much smaller injuries. Medical payments limits often range between $2,000 and $5,000.

The best homeowners insurance in the Hawkeye State is the policy that fully covers you at the price you need. There are over 140 Iowa insurance companies writing policies in the state, so it’s crucial to shop around and compare to find the best options and prices. The insurers with the most policies in Iowa right now are:

These popular providers are a good place to start your home insurance search. You can also ask friends, neighbors, or an independent insurance agent for further suggestions. Checking company reviews online may help, too.

To know you’re getting the proper amount of coverage, you should take a home inventory to accurately determine your personal property coverage needs. You should also ask about endorsements and exclusions to account for your property and liability limits. 

A home inventory is a list that includes all of your belongings and how much you paid for them. It also wouldn’t hurt to have pictures or videos. Once you know the total, you can get the perfect amount of personal property coverage in your homeowners insurance policy, so you’re not overpaying for property insurance in Iowa or underinsuring yourself.

Note that some items, such as art and jewelry, have sub-limits within your policy, and you may need to schedule these things through scheduled personal property coverage to cover them entirely. Scheduled coverage costs extra but may be well worth it.

Know the risks of your property and how your plan covers them. For instance, you can add coverage for equipment breakdown and water backup to your plan. Homeowners insurance doesn’t cover damage from earthquakes and floods in any scenario, so you’ll need a separate policy for these risks if you’re concerned about them.

Following these tips, you can get a good idea of what you want before starting your search. This gives you a leg up when looking for the best policy for your needs.

Nationwide has some of the best Iowa home insurance rates based on our findings. Generally, the more coverage you need, the more you’ll pay for insurance, which is why rates vary depending on coverage amounts.

Looking at our chart below, you can see that Nationwide maintained the lowest rates regardless of coverage level. State Farm and American Family are also affordable options.

Let’s see how these insurers’ rates differ based on the amount of dwelling coverage on a policy.

On average, rates jumped about 34% when going from $200,000 to $300,000 of coverage. Nationwide had the smallest increase at $635 and remained the best selection for cheap home insurance in Iowa regardless of dwelling amount. 

Though not represented in our findings, it’s worth noting that many homeowners choose Progressive Insurance in Iowa. Larger, national insurers can appeal to those looking for a tried-and-true company with an easy user experience.

However, some homeowners may opt for smaller, regional insurers, like McKay Insurance in Iowa, or Mid Iowa Insurance for those that live in the cities of Lake View and Lake City. These insurers often have a more focused approach to customer service and may be more familiar with the nuances of homeowners insurance in your area. 

As climate change and inflation drive up the cost of homeowners insurance in Iowa and across the nation, such factors have also led to insurance companies pulling out of Iowa. Companies like Pekin Insurance, Secura, Celina, and Hastings Mutual Insurance Company have dropped Iowans or exited the market in the state, while insurers like IMT have stopped issuing new policies in the Hawkeye State. 

Events like tornadoes and severe hail storms have prompted homeowners to make more frequent and expensive claims on their homeowners insurance policies, stretching these companies thinner than they can bear. 

The result of these insurers dropping policyholders can be catastrophic, as homeowners are left uninsured and other insurance companies struggle to find the bandwidth to bind new policies. 

Getting the cheapest homeowners insurance in Iowa can be a struggle, especially if you have a history of filling claims, live in a large house, or desire high coverage limits on your policy. However, it isn’t impossible to find low rates in the Hawkeye State. Here are two things you can do to lower your rates:

Raising your deductible is a simple way to lower your premiums. Premiums and deductibles move in opposition – as one rises, the other falls. Thus, by raising your deductible amount, you lower your home insurance cost.

Be aware, though, that your deductible is the amount you owe during the claims process before your insurance benefits kick in. Ensure your deductible is still affordable should you need to file a claim.

Utilizing the discounts your insurer offers is an excellent way to ensure you’re getting the best rates for the coverage you desire. If you find an insurer that offers the best home and auto insurance in Iowa, check to see if they have a bundling discount for binding both policies. Similarly, if you have a home security system or haven’t had to file a claim in several years, you’ll find these are common discount offerings. 

Iowa homeowners insurance companies are in the business of risk. Every time they issue a policy, they take on a financial risk because they might have to pay a claim. To confirm a policy is worthwhile, a carrier will analyze several factors to determine your premiums to know how much to charge you. Thus, your premiums may be higher or lower than the state’s average rate of $2,533 annually.

Some of the most significant factors that affect average home insurance rates are:

A home’s location is crucial to premiums. Some areas are riskier than others. You may have higher rates if your home is in a particularly tornado-prone or theft-prone area in Iowa. Insurers also consider your distance from a fire hydrant or fire station; closer is usually better for premiums.

The age of your house is also an important factor. Newer homes often have lower premiums than older ones because newer houses are up to the latest building and safety codes and free of wear-and-tear-related issues that can lead to exacerbated property damage and potential claims. Sometimes, a carrier won’t even need to inspect brand-new houses before issuing a policy.

How your house was built plays a role in how much you pay for insurance, too. Larger, more expensive homes typically need more coverage (due to a higher replacement cost) than smaller, simple homes. Additionally, frame houses tend to have higher rates than masonry homes. Since frame houses are made of timber, they’re more susceptible to fire damage and less resistant to strong winds than brick or concrete houses.

The Iowa Fair Access to Insurance Requirements (FAIR) plan is a form of government-backed insurance homeowners may bind to get the coverage they need on their home. Binding FAIR plan homeowners insurance is a last-resort option for those who can’t get coverage on the standard market.

Sometimes, if you file several claims in a short amount of time, have a poor credit history, or live in an area highly susceptible to theft or natural disasters, insurers can turn you away and refuse to insure your home. If this is the case, your only option may be a FAIR plan. 

These policies tend to be pricey and generally won’t offer coverage as good as those on the standard market, so it should always be used as a last-ditch effort to get coverage. 

No, homeowners insurance isn’t required in Iowa by law. But, if you have a mortgage, your lender will require you to keep a home insurance policy.

Lenders require homeowners insurance to protect their investment in your property. If your house gets damaged or destroyed, you and your lender can recoup the value of your home from the insurance company. 

If you stop paying your premiums or never get your own policy in the first place, your lender will force place coverage on you. Force-placed insurance is not ideal, because it’s more expensive and less helpful than standard homeowners insurance. 

Like in every state, homeowners insurance agents in Iowa have rules and regulations they need to follow stipulated by the government. Many of these laws outline procedures for how insurance companies handle claims and communications with carriers, so it’s easier for policyholders to stay in the loop. 

For instance, the law states that insurers must confirm or deny your claim in a reasonable time after you send in proof of loss. They must also act “promptly” to complete claims investigations. During the claims process, you should maintain open lines of communication with your provider and monitor your mail, email, and telephone. Verify your carrier has the correct address for yourself and your mortgage company.

Also, any home that has been vacant or unoccupied for over 60 days that isn’t under construction may need vacant home insurance or another type of coverage instead of standard home insurance. Homes that are vacant for an extended period have a much greater risk of experiencing damage since no one is around to monitor the property if something goes wrong. 

As we mentioned earlier, you need to compare companies in your area to know you’re getting the best deal. Getting Iowa home insurance quotes is easy with Clovered. You can use our quoting engine to compare plans from top providers in your area in just a few minutes.

If you’d rather speak to a licensed agent for help with your quote, call us at 833-255-4117 any time during business hours. Or, feel free to email us at agent@clovered.com. 

We’ll happily answer any questions about your quotes. We’ve helped over 30,000 people in several states with their coverage needs since our founding five years ago, and we’d be happy to assist you.