6 Best Homeowners Insurance Companies in Iowa of 2022
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 the 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 done the research to help you identify the best homeowners insurance for your needs.
Here are the best homeowners insurance companies in Iowa.
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 $87 per month, which is significantly less than the Iowa monthly average.
Read a full Liberty Mutual home insurance review.
What are the Liberty Mutual Homeowners Insurance Discounts?
Liberty Mutual offers an impressive array of 9 discounts to help Iowa homeowners save on their insurance premiums.
- Early shoppers. Buy your policy before your existing policy expires to save.
- Insured-to-value discount. You’ll save if you insure your home for 100% of its replacement cost.
- Paperless policy. Elect to receive your paperwork electronically to save.
- Autopay discount. Save if you enroll in automatic payments.
- Newly purchased home discount. New homeowners get a break on their premiums.
- New/renovated home discount. You’ll save if you purchase a new or newly renovated home.
- New roof discount. If your home has a new roof, you’ll get a discount.
- Claims-free discount. Save if you have not filed a homeowners claim.
- Policy bundling. Get a discount if you buy two or more policies with Liberty Mutual.
Liberty Mutual Homeowners Insurance Pros & Cons
- Liberty Mutual has excellent customer service that’s available via phone, text, and social media.
- The company offers more discounts than any other company on our list.
- Inflation coverage is available to increase your policy limit as the value of your home increases.
- The Liberty Mutual mobile app is well-regarded and convenient for claims filing, support, and other services.
- Live chat is an option if you need assistance.
- Flood insurance is available as an add-on.
- Some of Liberty Mutual’s discounts are not available for older homes.
- There are not as many add-on coverage options as some other companies.
- Some dog breeds are excluded from coverage.
|J.D. Power (out of 1,000)||805|
|A.M. Best - Financial Strength Rating||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 as well, 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, but 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.
What are the Lemonade Homeowners Insurance Discounts?
There are three discounts that Iowa homeowners can take advantage of if they choose Lemonade as their homeowners insurance company.
- Multi-policy discount. Anybody who purchases two or more policies from Lemonade will get a break on their premium.
- Annual pay discount. Pay your full premium in advance to get a discount.
- Protective devices discount. You'll get a break on your premium if you install smoke detectors, fire alarms, or burglar alarms in your home.
Lemonade Homeowners Insurance Pros & Cons
- Lemonade’s AI-powered website and mobile app provide online quotes in moments.
- The well-reviewed mobile app makes changing coverage and filing claims easy.
- Claims filing takes just a few minutes, with some claims being paid instantly.
- Lemonade’s pricing is affordable.
- Customer waiting times are low and the company receives few complaints.
- Lemonade makes a large charitable donation each year.
- Live customer support is not always available.
- Most services are available only online or via the mobile app.
- Lemonade offers just three discounts on homeowners insurance.
- The company’s financial strength has not been rated.
|J.D. Power (out of 1,000)||870|
|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.
What are the State Farm Homeowners Insurance Discounts?
State Farm does not offer as many homeowners insurance discounts as other companies, but there are a few ways for Iowa homeowners to save money.
- Multiline discount. You can save up to $1,125 per year by bundling your auto & home insurance.
- Roofing discount. You can get a discount if you replace your existing roof with impact-resistant roofing materials.
- Home security discount. Installing fire, smoke, burglar alarms, or a home monitoring system will save you money.
State Farm Homeowners Insurance Pros & Cons
- State Farm receives top financial ratings and top customer service ratings.
- The company’s Expanded and Premium coverage offers protection for water backup, equipment breakdowns, replacement of furs, jewelry, gold, and silver, and more.
- Homeowners can buy up to $1 million of personal liability coverage.
- There is an array of excellent online and mobile services for everything from policy changes to claims filing.
- The company provides catastrophe protocols and emergency services to policyholders.
- State Farm’s coverage is on the high end of the spectrum.
- There are fewer discounts available than with other companies.
|J.D. Power (out of 1,000)||829|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||1.77|
Travelers: Best for People on a Budget
- Multi-Policy Discount.
- Loss-Free Discount.
- Protective Device Discount.
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 also 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.
What are the Travelers Homeowners Insurance Discounts?
Homeowners who buy their insurance with Travelers have multiple ways to save on their homeowners insurance premium.
- Multi-policy discount. You can save up to 12% if you buy your homeowners insurance and three other policies from Travelers.
- Green home discount. You can save money if your home has been certified as a “green home” by the Leadership Energy & Environmental Design (LEED) organization.
- Protective device discount. Any homeowner with installed smoke detectors, sprinklers, home security, or smart devices can save money.
- Home buyer discount. If you bought your home within 12 months of switching your coverage to Travelers, you can get a discount.
- Loss-free discount. You may qualify for a discount if you haven’t filed a claim recently.
Travelers Homeowners Insurance Pros & Cons
- Travelers homeowners insurance policies are very affordable for Iowa homeowners.
- Green home coverage can pay to rebuild your home with green materials.
- Water back-up and sump pump protection are available as add-ons.
- The company provides excellent customer service.
- The mobile app doesn’t work as well as it should for Android users.
- Travelers doesn’t offer as many discounts as other companies on our list.
|J.D. Power (out of 1,000)||794|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||3.88|
Allstate: Best for Flood Claim Facilitation
In business since 1931, Allstate is 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 makes it easy for 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.
What are the Allstate Homeowners Insurance Discounts?
There are eight discounts available for Iowa homeowners who buy their insurance through Allstate.
- Welcome discount. Get a 10% discount if you switch your insurance to Allstate.
- Bundling discount. Get two or more policies with Allstate to save.
- Claims-free discount. You can get a break on your premium if you have no recent homeowners insurance claims.
- Early signing discount. Sign your new Allstate policy a week or more before your existing policy expires to save money.
- Protective device discount. Save on your premium if your home has installed fire protection or theft devices.
- New homeowner discount. Any new home buyer can get a discount, and the same applies to those who buy newly constructed homes.
- New roof discount. Even if your house isn’t new, installing a new roof can save you money.
- Responsible payer discount. Policyholders who pay their premiums on time will save.
Allstate Homeowners Insurance Pros & Cons
- Allstate’s website is user-friendly and simple to navigate.
- Rate Guard option allows homeowners to lock in their premium.
- Allstate offers an optional digital identity tracking tool.
- HostAdvantage coverage will protect you if you share a home or rent it.
- Endorsement options include yard & garden repairs, recovery of stolen electronic data, and medical coverage for guests.
- Allstate does not offer replacement cost coverage with their standard policy.
- Insurance premiums are higher than some other companies on our list.
- Allstate doesn’t offer flood insurance (although they will facilitate your FEMA claim).
|J.D. Power (out of 1,000)||815|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||2.05|
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 is likely to resonate with many homeowners in Iowa.
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.
What are the Nationwide Homeowners Insurance Discounts?
Nationwide has a large array of discounts that can be layered to save Iowa homeowners money on their insurance policies.
- Protective devices. Homeowners who have installed fire alarms, smoke detectors, or burglar alarms can get a discount.
- Bundling. Buy two or more policies with Nationwide to save.
- Home renovation. You’ll get a discount if you update your home’s electrical, plumbing, or HVAC systems.
- Roof rating. You can save money based on the type of roof you have and its age and condition.
- Claims-free. You’ll get a break on your premium if you have not filed a homeowners insurance claim.
- New home purchase. Get a discount if you’ve purchased your home within one year of buying your policy.
- Prior insurance. If you’re new to Nationwide, you can get a discount based on how many years you were insured with your previous carrier.
- Smart home. Homeowners who have installed smart home technology may qualify for a discount.
- Gated community. Homeowners who buy a house in a gated community can save.
Nationwide Homeowners Insurance Pros & Cons
- Unique coverages are available that allow homeowners to rebuild their roof with stronger materials, revamp their home’s electrical, HVAC, and plumbing, and replace belongings with new ones regardless of their age.
- Nationwide has excellent customer service, including personalized service from its network of local agents.
- Offers standard coverage that would cost extra with other companies.
- Online claims filing is easy and takes just a few minutes.
- Nationwide’s coverage is not available for manufactured or mobile homes.
- The mobile app was originally designed for auto insurance and does not work as well as it should for homeowners insurance.
|J.D. Power (out of 1,000)||816|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||0.88|
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.
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.
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.
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 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.
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.
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.
The deductible you choose will significantly affect your premium, with high deductible policies costing significantly less than low deductible policies.
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.
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.
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 completely rebuild your home.
- Other structures coverage provides coverage for 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.
Keep in mind 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 that 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 they are in your home or not, when they are lost, stolen, or damaged – with the same caveat we mentioned above about high-value items, which must be scheduled separately.
- Property damage caused by any covered event, whether it’s a house fire or a severe storm that 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
- 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.
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, keep in mind 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.