Once you’ve bought a home, you’ll need to buy homeowners insurance to protect your new asset. Iowa has a history of being hit by several different types of natural disasters, so you’ll want to be prepared. Fortunately, Iowans enjoy one of the 10 cheapest average home insurance premiums in the country, at $144 per month — well below the national average of $205.
Table of contents
- Best home insurance companies in Iowa
- How much is homeowners insurance in Iowa?
- What are the cheapest home insurance companies in Iowa?
- How much homeowners insurance do you need in Iowa?
- What are some of the biggest risks when owning a home in Iowa?
- How can you save money on homeowners insurance in Iowa?
- Average home replacement cost in Iowa
- Iowa home insurance FAQs
Best home insurance companies in Iowa
Iowa homeowners have plenty of quality providers to choose from when shopping for homeowners policies. The best companies provide thorough coverage and good customer service at affordable rates, but the best company won’t be the same for everyone. It’s important to consider your specific needs and preferences before choosing an insurance provider.
Best large insurer: Travelers
Travelers is one of the largest insurance companies in the nation and offers some of the cheapest rates available to Iowa homeowners, at an average of $130 per month. This is lower than both the state and national monthly averages of $144 and $205.
The company ranked below average for customer satisfaction in a J.D. Power study but has a below-average number of complaints from customers, according to data from the National Association of Insurance Commissioners (NAIC).
Offers low premiums
Has the highest possible financial strength rating from A.M. Best
Additional coverages for water backup, sump pump discharge, green home materials, identity theft, and more
Has a below-average customer satisfaction ranking from J.D. Power
Offers fewer discounts than some competitors
Doesn’t offer a flood insurance add-on
Best insurer for cheap rates: Integrity
Integrity is a regional insurance company serving Wisconsin, Minnesota, and Iowa. According to its website, Integrity seeks to make insurance simple and affordable. In fact, it offers the lowest homeowners insurance premiums of any provider in Iowa, with an average monthly rate of $99.
Has the cheapest rates for Iowa homeowners
Below-average number of complaints with the NAIC
Offers a variety of coverages and discounts
Doesn’t offer a flood insurance add-on
No online quotes — you’ll need to work with an agent
Has a lower A.M. Best financial strength rating than most competitors
Best insurer for flood coverage: Amica
Flooding is a surprisingly common peril for Iowa homeowners. The state has experienced 29 flood-related disasters since 1953, resulting in major losses for insurance companies and homeowners alike. Additionally, the state’s cold winter temperatures can increase the risk of burst pipes.
Amica could be a great choice for Iowans who want extra protection against flooding. Not only does Amica offer flood insurance, but it also has the highest J.D. Power customer satisfaction ranking of any homeowners insurance company.
Has the highest customer satisfaction ranking from J.D. Power
Offers an add-on for flood insurance
Potential to earn dividends of up to 20% of your annual premium
Online quotes not available for all customers
Rates not available to compare to other providers
Not available in Alaska or Hawaii
Best insurer for high-value homes: Chubb
If you have a high-value home (or have many valuable belongings in your home), then you may need a special insurance policy above and beyond what you’ll find with a typical provider.
Chubb specifically serves homeowners with more significant assets. However, because these are more comprehensive policies, you can expect to pay more than the state’s average for insurance.
Provides coverage for high-value homes and access to risk consultants
Offers extended replacement cost and coverage for changed building codes
Has the highest possible financial strength rating from A.M. Best
Below-average customer satisfaction rating from J.D. Power
More expensive policies due to more comprehensive coverage
Online quotes not available
Best regional insurance company: IMT Insurance
IMT Insurance is a Midwestern insurance company that serves six states, including Iowa. It serves its customers through independent agents that operate throughout Illinois, Iowa, Minnesota, Nebraska, South Dakota, and Wisconsin.
Has a below-average number of complaints with the NAIC
Expanded coverages for homes with replacement costs of $175,000 or higher
Offers many discounts, including new home, claim-free, and loyalty discounts
Has lower A.M. Best financial strength rating than many competitors
No online quotes — you’ll need to work with an agent
Coverage only available in six states
See More: 5 Best Home Insurance Companies
Insurify’s team of data scientists analyze millions of home insurance quotes, and weigh publicly available reviews, claims payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.
How much is homeowners insurance in Iowa?
Iowa is one of the most affordable states in the country for homeowners insurance. However, the rate you’ll actually pay depends on several factors, including your location, the type and amount of coverage you need, and more.
How your policy choices affect home insurance rates in Iowa
Your policy form
The type of policy you choose affects the amount you’ll pay for homeowners insurance. Eight different homeowners policy types are available, and the one you’ll need will be largely dictated by the type of property you have and how much coverage you want.
These are the eight different types of homeowners insurance policies:
HO-1: This is the most basic type of policy, providing only actual cash value coverage for damage caused by a handful of perils. HO-1 policies aren’t typically offered anymore.
HO-2: This type of policy is more comprehensive than an HO-1 policy. It includes more covered perils and will pay you for the replacement cost of your home and the actual cash value of your personal belongings in the event of a claim.
HO-3: This is the most common type of homeowners insurance policy, offering more coverage than both HO-1 and HO-2 policies. HO-3 coverage — also known as a special form policy — covers your home for all perils except those specifically excluded in your policy.
HO-4: This type of policy is designed for renters. It covers the personal belongings within a unit, rather than the structure.
HO-5: This type of policy is even more comprehensive than an HO-3 policy, but not as common. HO-5 policies — also known as premier or open policy forms — offer higher coverage limits for your personal belongings and cover them for their replacement cost instead of their actual cash value.
HO-6: This type of policy is similar to an HO-4 policy in that it only covers your personal belongings inside of your unit. But rather than being for renters, an HO-6 policy is for condo owners. It can also cover your fixtures and appliances, as well as any upgrades you’ve made to the home.
HO-7: This type of insurance is similar to HO-3 coverage, but it covers mobile homes instead of traditional homes. Like an HO-3 policy, it covers damage to your home, as well as damage to your personal belongings caused by any peril not explicitly excluded in your policy.
HO-8: This type of policy, like an HO-1 policy, covers both your home and personal belongings at their actual cash value. It has a list of perils and only covers damage caused by those perils. This type of policy is typically for older homes and isn’t as comprehensive as most homeowners insurance policies.
Each policy type covers certain perils, such as house fires, tornadoes, and vandalism. The policy you need depends on your location, your home type, and your budget.
Check Out: What Are Perils in Insurance?
Your coverage level
The coverage level you choose directly affects how much you’ll pay in premiums. As you would expect, the higher your coverage levels are, the higher your premiums will be. For example, Iowans with $250,000 in coverage pay an average of $1,496 annually, while those with $500,000 in coverage pay an average of $2,616 annually.
But you shouldn’t sacrifice your coverage level just to save money on your premiums. Doing so could leave you paying tens of thousands of dollars — or more — out of your own pocket if you need to file a claim.
Your home insurance deductible is the amount you’ll pay out of pocket before your insurer will cover the rest. Deductibles are a way for an insurance company to share some of the risk and cost with policyholders.
Generally speaking, there’s an inverse relationship between your deductible and your premiums. The higher the deductible you choose, the lower your premiums will be, and vice versa. Just make sure you can pay the deductible if you need to file a claim.
How location affects home insurance rates in Iowa
Location is an important factor when it comes to homeowners insurance rates. And it’s not just from one state to the next that rates differ — even neighboring ZIP codes can have different rates.
“If you live in an area with high crime rates, such as theft, your cost of insurance will be higher because insurance companies will expect to pay out a greater amount of claims in that area,” says Lauren McKenzie, an insurance broker at A Plus Insurance.
“Location also matters because if the home is in a high-risk zone for flood or fire insurance, companies may be exposed to more claims for flood or wind/fire damage,” says McKenzie.
The table below shows the average monthly premiums across four of the most populous cities in Iowa.
|Average Monthly Quote
What are the cheapest home insurance companies in Iowa?
Iowa homeowners have no shortage of options when it comes to choosing an affordable insurance provider. The cheapest average homeowners insurance available in Iowa comes from Integrity Insurance at $98 per month, according to Insurify data. State Auto and Stillwater are similarly affordable, at $108 and $115 per month, respectively.
These rates are considerably lower than the state average of $144 per month. That being said, the cheapest policy may not be right for you. Your specific coverage needs may result in a more expensive premium.
|Average Monthly Quote
|Midvale Home & Auto
How much homeowners insurance do you need in Iowa?
Generally speaking, mortgage lenders require all borrowers to have homeowners insurance on their homes. And even if you don’t have a mortgage, it’s important to have insurance to protect such a large asset. But that leaves many homeowners with the question: What type of homeowners insurance — and how much of it — do I need?
When buying homeowners insurance, it’s critical that you understand exactly what your policy covers (and what it doesn’t) in case you need to file a claim. Standard homeowners insurance covers many perils, but you’ll have to buy certain coverages separately.
Learn More: How Much Homeowners Insurance Do You Need?
What home insurance coverages should you buy in Iowa?
A typical homeowners policy comes with the following four coverages:
Dwelling: Your homeowners insurance policy, first and foremost, covers damage to your home itself. Dwelling coverage usually also protects structures attached to your home, such as a garage. Unattached structures are also covered, but usually only for 10% of your dwelling coverage.
Personal property: Your homeowners insurance policy covers all your belongings within your home, usually up to 50% to 70% of your dwelling coverage.
Personal liability: Your homeowners insurance is also designed to protect you from liability. For example, if someone is injured in your home or a member of your family causes damage to someone else’s property, personal liability coverage will protect you against lawsuits.
Additional living expenses: If your home is damaged by a covered peril, your homeowners insurance will pay for your additional living expenses until you can return home, like a hotel stay, extra food costs, and more.
What optional home insurance coverages should you buy in Iowa?
You can buy various other coverages as optional add-ons to your standard policy. These optional coverages can help to protect you from some of the perils not covered by standard homeowners insurance:
Flood coverage: Homeowners insurance generally doesn’t cover flood damage. If you need flood insurance, you can buy it through the National Flood Insurance Program or from some private insurers.
Earthquake coverage: A standard homeowners insurance policy doesn’t typically cover damage from any earth movement, including earthquakes, landslides, and sinkholes. Many insurers sell optional earthquake insurance policies. And if you’re in California, you can purchase it from the California Earthquake Authority.
Ordinance or law: Homeowners insurance doesn’t typically pay for repairs or rebuilds required by local ordinances. For example, you may need to make an upgrade to your home based on building codes in your area or local ordinances may require that your home be demolished and fully rebuilt after a certain amount of damage. Traditional homeowners insurance may not apply in these situations, but you can purchase what’s called ordinance or law coverage.
Wear and tear: Homeowners insurance doesn’t cover basic wear and tear to your home, its appliances, or its systems, but you can purchase a home warranty that will cover those items. Warranties often cover items and systems in your home, like your appliances, HVAC system, plumbing, and more.
How much home insurance coverage should you have in Iowa?
“The amount of homeowners insurance coverage a person should have is different for each person,” says McKenzie. “You want to match your coverage to your assets and the value of the home to ensure you are properly covered.”
You’ll want to ensure you have enough coverage to fully replace your home and everything in it in the event of a total loss.
Know how much it would cost to rebuild your home. You can get a rough estimate by multiplying your local construction costs by the square footage of your home. But you should also take into account factors like the style of your home, the materials used, other structures on the property, and whether any parts are custom-built.
Remember that as home and construction costs rise, so does the cost to replace your home. Update your coverage annually to reflect that.
You’ll also want to make sure you have enough coverage for your personal belongings. A standard policy covers belongings for 50% to 70% of the dwelling coverage, but you may need additional coverage if you have lots of expensive items.
Finally, consider how much liability coverage you need. Homeowners insurance policies often come with $100,000 of liability coverage. But if you have a large number of assets or may be at a higher risk of a lawsuit, it may be worth increasing your coverage.
Check Out: Home Insurance for New Construction Homes
What are some of the biggest risks when owning a home in Iowa?
You may not think of Iowa as a state that’s particularly at risk for natural disasters and other perils that could damage your home. However, Iowa homeowners face plenty of risks, including:
Tornadoes: Tornadoes are one of the most prevalent risks facing Iowa homeowners and can easily result in the total destruction of a home. In 2022 alone, Iowa experienced 42 tornadoes, all occurring between March and August. Fortunately, damage from tornadoes and other windstorms is usually covered by homeowners insurance.
Flooding: Iowa is no stranger to flooding. The state has experienced at least 29 flood-related natural disaster declarations over the past 70 years, with one flood in 2019 causing more than $1.6 billion in damages. And unfortunately, flooding isn’t usually covered by standard homeowners insurance. In most cases, you’ll have to buy a separate policy or pay extra to add flood insurance to your standard policy.
Winter weather: Iowa usually experiences cold winter temperatures and snowfall, which can cause damage to homes in the form of structural damage, fallen trees, water damage, frozen pipes, and more. A standard homeowners insurance policy usually covers damage from winter weather, including the weight of ice and snow, frozen pipes, and falling objects.
How can you save money on homeowners insurance in Iowa?
Iowa already has some of the most affordable homeowners insurance rates in the country, but you have even more ways to save money on your policy. Here are a few examples:
Bundle your home and auto insurance
Many insurance companies give you a discount when you bundle your home and auto insurance policies. All you’ll have to do is purchase both insurance policies from the same provider.
Take advantage of other discounts
Plenty of homeowners insurance providers offer discounts to help customers save money on their policies. You can get discounts in many ways, including:
Having a newer home
Upgrading certain systems or parts of your home
Paying for your policy in full
Being in close proximity to a fire department
Having certain safety features in your home, including fire extinguishers, sprinklers, water shut-off devices, and more
Installing a home security system
Maintaining a claim-free record
Staying with the same insurance company for many years
Having certain affiliations with the military or other organizations
Making your home more energy-efficient
Ask your insurance agent about other discounts you may qualify for.
Raise your deductible
Generally speaking, there’s an inverse relationship between your deductible — the amount you’ll pay out of pocket for a claim before your insurance company covers the rest — and your premium. The lower your deductible is, the higher your premium will be. Likewise, you can lower your premium by raising your deductible.
Insurance rates can vary drastically from one company to the next, which is why it’s important to compare quotes from multiple insurers before buying a policy. You can comparison shop by getting quotes directly from providers, working with an insurance broker, or using an online insurance marketplace.
Average home replacement cost in Iowa
Replacement cost is a common type of loss valuation in homeowners insurance policies and determines the amount an insurance company will pay for damages. With a replacement cost policy, your insurance company will provide enough coverage to fully repair or replace your home.
Knowing the replacement cost of your home is important when creating your policy. You’ll want to make sure you have enough coverage to rebuild if necessary. The table below shows the average cost to rebuild a home in some of Iowa’s most populous cities.
|Average Home Value
Iowa home insurance FAQs
Here are answers to some frequently asked questions about home insurance in Iowa.
The average homeowners insurance premium in Iowa is $144 per month. Many factors can affect your insurance rate, though, meaning your premiums may be higher or lower than the average. Additionally, if you decide to purchase any optional coverages, such as flood insurance, then you should expect to pay more.
No, homeowners insurance isn’t expensive in Iowa. Iowa homeowners pay an average monthly premium of $144, much lower than the national average of $205.
The three main types of homeowners insurance coverages are actual cash value, replacement cost, and extended replacement cost. Actual cash value pays you the value of your property — which is its replacement cost minus depreciation. Replacement cost pays you the amount you would pay to replace the property. Finally, extended replacement cost — also known as guaranteed replacement cost — gives you a certain percentage above your home’s replacement value to ensure there’s no coverage gap.
The state of Iowa doesn’t require homeowners to carry homeowners insurance. However, mortgage companies generally require borrowers to maintain this coverage, at least until they’ve paid off their home loans. Even if you don’t have a lender that requires homeowners insurance, it’s almost always necessary unless you can afford to pay to replace your home and belongings out of pocket.
State Farm insures the most homes in Iowa, serving 9% of the market, according to a 2021 report from the National Association of Insurance Commissioners. It’s followed closely by Progressive and Nationwide, which serve 6.5% and 6% of the market, respectively.
- National Association of Insurance Commissioners. "National Complaint Index Report." Accessed March 7, 2023
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- J.D. Power. "2022 U.S. Home Insurance Study." Accessed March 7, 2023
- Iowa Now. "UI researchers create map showing flood risk for Iowa farmland." Accessed March 7, 2023
- National Association of Insurance Commissioners. "A Consumer's Guide to Home Insurance." Accessed March 7, 2023
- National Association of Insurance Commissioners. "Homeowners Insurance." Accessed March 7, 2023
- Insurance Information Institute. "What is covered by standard homeowners insurance?." Accessed March 7, 2023
- National Weather Service. "2022 Iowa Tornadoes." Accessed March 7, 2023
- Insurance Information Institute. "Homeowners Insurance Basics." Accessed March 7, 2023
- National Association of Insurance Commissioners. "Property and Casualty Insurance Industry 2021 Market Share Report." Accessed March 8, 2023
Erin Gobler is a personal finance writer and journalist based in Madison, Wisconsin. With more than five years of experience, Erin has covered topics such as investing, credit cards, mortgages, insurance, and more. Her work has been featured in major publications like Business Insider, Fox Business, and Time. Erin received her bachelor’s degree from the University of Wisconsin-Oshkosh in 2013, studying journalism and political science. She also received a certificate of financial planning from Boston University in 2022.