6 Best Homeowners Insurance Companies in Iowa of 2023
Iowa homeowners live in a beautiful state that includes big cities such as Des Moines and Iowa City and small towns like Decorah and Dyersville.
Wherever you live in Hawkeye State, purchasing homeowners insurance is important to protect your home, property, and personal liability.
Homeowners are not legally required to purchase homeowners insurance in the state of Iowa, but lenders require it to protect their interest in the home being purchased.
The average annual cost of homeowners insurance is $1,500, or about $125 per month, which is slightly higher than the national average of $1,475 per year.
At PropertyNest, we want your home in Iowa to be protected at all times, which is why we’ve researched to help you identify the best homeowners insurance for your needs.
Here are the best homeowners insurance companies in Iowa.
Compare Homeowners Insurance Rates in Iowa
The Best Homeowners Insurance Companies in Iowa
- Liberty Mutual: Best for Policy Discounts
- Lemonade: Best for Online Quotes and Services
- State Farm: Best for Expensive Homes
- Travelers: Best for People on a Budget
- Allstate: Best for Flood Claim Facilitation
- Nationwide: Best for Fixer-Uppers
Liberty Mutual: Best for Policy Discounts
Liberty Mutual is a respected company with a strong claims-paying record and high financial ratings.
They offer more discounts than any other homeowners insurance company on our list, which is why we recommend them as an option for Iowa residents.
Along with the usual coverage, Liberty has customizable options, including add-ons such as identity theft protection and inflation protection.
Their website and mobile app are both easy to use, and make it simple to manage your policy and coverage, file a claim, or pay your monthly premium.
Liberty Mutual reports that the average cost of homeowners insurance is just $85 per month, which is significantly less than the Iowa monthly average.
Read a full Liberty Mutual home insurance review.
| J.D. Power (out of 1,000) | 805 |
|---|---|
| A.M. Best - Financial Strength Rating | A |
| BBB | A+ |
| NAIC Complaint Index | 2.37 |
Lemonade: Best for Online Quotes and Services
Lemonade may not have been around as long as the other companies on our list, but they stand out because of their focus on high-quality online and mobile services.
Homeowners in Iowa can get a quote in just a few minutes on Lemonade’s user-friendly website or by using their free mobile app.
Claims can be filed quickly and easily, with some claims being approved and paid instantly.
In addition to providing speedy service, Lemonade makes a sizeable charitable donation every year.
According to Lemonade, the monthly cost of a basic homeowners insurance policy starts at just $25. Still, depending on where your home is located and how much coverage you buy, your total is likely to be higher than that.
Read a full Lemonade home insurance review.
| J.D. Power (out of 1,000) | 870 |
|---|---|
| BBB | B+ |
| NAIC Complaint Index | 1.94 |
State Farm: Best for Expensive Homes
State Farm is one of the most respected insurance companies in the United States.
While the costs might be a bit higher than the other companies on our list, we chose it because the company offers tiered coverage with additional protection available for high-value homes.
State Farm receives high ratings for its financial strength and customer service.
We also like that State Farm operates in accordance with a robust set of values typified by its “Good Neighbor” advertisements.
The average annual cost of homeowners insurance with State Farm is $2,365, which works out to just under $200 per month.
That cost is high, but it’s partially due to the fact that State Farm offers the option for homeowners to buy extra liability coverage and offers a premium policy for high-value homes.
Read a full State Farm homeowners insurance review.
| J.D. Power (out of 1,000) | 829 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
| NAIC Complaint Index | 1.77 |
Travelers: Best for People on a Budget
Travelers Insurance has been in operation for 165 years, which makes it one of the oldest insurance companies in the United States.
The company prides itself on its affordability, which is why we chose it for our list.
In addition to offering affordable prices, Travelers offers some unique coverage add-ons that make it an appealing choice, particularly for those interested in sustainable building.
The average price of Travelers homeowners insurance in Iowa is just $715 per year, putting it well below the national and state averages and making it a great deal for Iowa homeowners.
| J.D. Power (out of 1,000) | 794 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A |
| NAIC Complaint Index | 3.88 |
Allstate: Best for Flood Claim Facilitation
In business since 1931, Allstate has been one of the largest insurance companies in the United States.
We chose Allstate as one of the best homeowners insurance companies in Iowa because of their willingness to facilitate FEMA claims when a flood occurs, something that’s important for any Iowa homeowner who lives near the water.
Allstate also allows homeowners to customize their coverage with endorsements and riders.
With a user-friendly website that makes filing and tracking claims easy, Allstate takes a lot of the stress out of being a homeowner.
Allstate’s average monthly cost for a homeowners insurance policy is $135, which puts it slightly higher than the state average.
Iowa homeowners can save by layering two or more discounts.
Read a full Allstate homeowners insurance review.
| J.D. Power (out of 1,000) | 815 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 2.05 |
| BBB | A- |
Nationwide: Best for Fixer-Uppers
Nationwide has been in business for nearly 100 years, getting its start as an auto insurance company for Ohio farmers.
Today, it is one of the biggest insurance carriers in the United States and receives high ratings for both its financial strength and customer service.
We chose it for our Iowa recommendations because the company offers some unique protections for those who wish to renovate older homes.
We also like that flood insurance is available as an add-on, which will likely resonate with many Iowa homeowners.
On the Nationwide website, the average cost of homeowners insurance in Iowa is just $920 per year, significantly lower than the state and national averages.
| J.D. Power (out of 1,000) | 816 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| BBB | A+ |
| NAIC Complaint Index | 0.88 |
What Are the Factors That Impact the Cost of Homeowners Insurance?
We’ve provided average costs for homeowners insurance for each company on our list, but you should keep in mind that the following factors will impact how much you pay for your coverage.
Deductible
The deductible you choose will significantly affect your premium, with high deductible policies costing significantly less than low deductible policies.
Coverage Limits
Most experts agree that homeowners should have enough insurance to completely rebuild their home in the event that it is destroyed.
If you have a high-value property or choose to add extra coverage, you should expect to pay more for your homeowners insurance.
Location
The location of your home also impacts your rates, and rates may be higher if you live near a body of water or far from the closest firehouse.
Rates may also be impacted if you live in a high-crime area.
Additional Coverage/Endorsements
Adding any additional coverage will add to the cost of your homeowners insurance.
If you schedule high-value belongings or add flood insurance, then you will pay a higher premium than you would without these coverages.
How Much Homeowners Insurance Do You Need?
One of the questions new homeowners often ask is about how much coverage they need to protect their homes and belongings.
There’s an easy way to calculate how much coverage you need by using the value of your home as a starting point.
- Dwelling coverage represents the bulk of your coverage and provides protection for your home and any attached structures; you’ll need enough coverage to rebuild your home completely.
- Other structures coverage covers any outbuildings or other structures on your property, including sheds and fences, and should be 10% of your dwelling limit.
- Personal property coverage protects your personal belongings if they should be damaged, destroyed, or stolen, and you should have between 50% and 70% of your dwelling coverage.
- Liability coverage provides personal protection if a guest in your home is injured or their property is damaged, and you’ll need between $100,000 and $500,000 in coverage.
- Medical payments coverage will pay some of the medical costs if a guest is injured in your home, and most policies have a limit between $1,000 and $5,000.
- Additional living expenses coverage will cover the costs if you and your family need to live somewhere else while repairs or construction are done, assuming your home is unlivable, and you’ll need 20% of your dwelling coverage to be safe.
Altogether, you’ll need about two times the replacement value of your house, not counting coverage for personal liability and medical payments.
Remember that your personal property coverage may need to be higher than we’ve indicated if you own high-value items such as jewelry and original artwork.
What Is and Isn’t Covered by Homeowners Insurance
Your homeowners insurance policy will provide you with a lot of protection if your home or personal property is damaged or stolen, but there are some things it won’t cover.
Here’s a list of the things that are covered by most standard homeowners insurance policies.
- Any structures on your property, including your house, detached garages, fences, sheds, and any other buildings.
- All your personal belongings, whether in your home or not, when lost, stolen, or damaged, with the same caveat we mentioned above about high-value items, which must be scheduled separately.
- Property damage is caused by any covered event, whether a house fire or a severe storm damages your home.
- Your personal liability is covered up to the policy limit if a guest to your home is hurt or their property is destroyed or damaged.
- Medical expenses for injuries sustained by guests in your home.
All the coverages listed here are subject to your policy deductible and limits.
Now, let’s look at the items that are not typically covered by homeowners insurance.
- Earthquake damage
- Flood damage
- Government action
- Neglect
- Nuclear hazard
- Pest damage or infestation
- Power failure
Most of the items we have listed above as not covered can be remedied by adding riders or endorsements to your policy.
Other coverage can be obtained by purchasing a separate policy, with a prime example being flood insurance, which can be purchased from FEMA.
Three items on the list may not be remedied with riders or another policy: neglect, nuclear hazard, and government action.
The first, neglect, is within your control; the latter two are unlikely to occur, and there is no way to remedy them if they should.
Synopsis
At PropertyNest, we believe that every Iowa homeowner should have enough homeowners insurance to cover the cost of rebuilding their home from the ground up and replacing their belongings.
As you shop for insurance, remember that many factors, including the value of your home and its location, can impact the cost of homeowners insurance.
Make sure to get quotes from at least three insurance companies, ask about available discounts, and compare costs and coverage before you buy a policy.
How We Selected the Best Homeowners Insurance Companies in Iowa
Shopping for and selecting homeowners insurance can be stressful and overwhelming, particularly if you’ve just bought your first home.
We made selections for our list of the best homeowners insurance companies in Iowa using the following criteria.
Costs
The cost of homeowners insurance is a concern for most homeowners since it’s a monthly expense on top of their mortgage payments.
We prioritized companies with affordable rates compared to Iowa's national and state averages.
Available Discounts
One way that homeowners can save on their insurance is by taking advantage of discounts provided by insurance companies.
We selected companies that offered two or more discounts, with special attention to those who provided discounts that were easy for most homeowners to qualify for.
Available Coverage
No two homes are alike, and it’s important to find homeowners insurance that provides the coverage you need to feel protected.
We prioritized companies that made it easy for homeowners to customize their coverage with endorsements and add-ons.
Customer Service
Customer service is always a priority since filing a claim can be stressful and upsetting, even with excellent service.
The companies on our list all provide good customer service, offering easy-access online and mobile support.
Technology
Finally, we recognize that many of today’s consumers prefer to shop for insurance and get insurance services either online or on their mobile devices.
We made it a point to include carriers who have user-friendly websites, online support, and mobile apps that make it easy to get what you need when you need it.
