Best homeowners insurance companies in Iowa for 2024

Compare the best homeowners insurance companies in Iowa

The annual average rate for Iowa home insurance is $2,284, which works out to roughly $190 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.

The top 5 home insurance companies in Iowa

Additional Iowa home insurance companies to consider

USAA

Nationwide

How Bankrate chose the best home insurance companies in Iowa

When looking for the best home insurance in Iowa, 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.

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.

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:

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 $2,284 per year for a policy with $300,000 in dwelling coverage. For comparison, the average cost of home insurance in the United States is $2,304 per year. That means Iowa homeowners pay about 1 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 $5,544 per year, and in Missouri, the average premium is $2,117 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.

*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.

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.

Frequently asked questions

Additional profiles:

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

Bankrate Scores 

Our Bankrate Score considers variables our insurance editorial team determined impact 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.