Best Homeowners Insurance in Iowa
- Best 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.
You’ll need homeowners insurance to equip yourself and your property. A home insurance policy is a financial safeguard that can go a long way in worst-case scenarios.
Shopping for a homeowners insurance policy isn’t the simplest thing, especially if you’ve never done it before. So, we made this guide on homeowners insurance in Iowa to help you make the right decision for yourself and your family.
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.
How Much Is Homeowners Insurance in Iowa?
The average home insurance cost in Iowa is about $2,093 for $300,000 of dwelling coverage. For comparison, this number is slightly lower than the average in neighboring Illinois, at $2,194 per year, and about on par with the average in Minnesota.
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 average home insurance cost in Iowa at different coverage levels.
Average Homeowners Insurance Cost in Iowa
Cost of House
What Does Homeowners Insurance in Iowa Cover?
In addition to covering your house, homeowners insurance in Iowa 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.
Coverage A: Dwelling
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.
Coverage B: Other Structures
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.
Coverage C: Personal Property
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.
Coverage D: Loss of Use
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.
Coverage E: Personal Liability
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.
Coverage F: Medical Payments
Medical payments coverage is like liability coverage but designed for much smaller injuries. Medical payments limits often range between $2,000 and $5,000.
What Is the Best Homeowners Insurance in Iowa?
The best homeowners insurance in Iowa is the policy that fully covers you at the price you need. Over 140 insurance companies currently write homeowners insurance in Iowa, 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:
- State Farm
- American Family
- Iowa Farm Bureau
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 unnecessary coverage 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 homeowners insurance in Iowa.
Which Companies Have Cheapest Home Insurance in Iowa?
IMT has some of the cheapest homeowners insurance in Iowa, 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 IMT remained the cheapest homeowners insurance in Iowa at coverage levels. Nationwide and American Family are also affordable options.
Average Homeowners Insurance Cost in Iowa
Iowa Farm Bureau
On average, rates jumped about 53% when going from $200,000 to $300,000 of coverage. Nationwide had the smallest increase at $557, but IMT was still the cheapest option overall.
Also of note, State Farm had the highest premiums of the companies we analyzed, but that doesn’t mean you should rule it out. Every company has different ways of underwriting, and State Farm may be more affordable for you than it is for someone else.
Factors That Affect the Average Home Insurance Cost in Iowa
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.
Some of the most significant factors that affect the average home insurance cost in Iowa are:
- Home location
- Home age
- Home construction
- Claims history
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.
Is Homeowners Insurance Required in Iowa?
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.
Iowa Homeowners Insurance Laws to Know
Like in every state, insurance companies in Iowa have rules and regulations they need to follow stipulated by the government. Many Iowa homeowners insurance laws outline procedures for 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.
How to Get Homeowners Insurance Quotes in Iowa
As we mentioned earlier, you need to compare companies in your area to know you’re getting the best deal. Getting Iowa homeowners 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.
We’d happily answer any questions about your Iowa homeowners insurance quote. 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.
We partner with the nation's top homeowners insurance companies so you can get a custom policy at an affordable price.
The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.