7 Best Renters Insurance Companies in Iowa 2023

Renting a place to live is something that many Iowans do, including those in large cities like Cedar Rapids and Des Moines and smaller municipalities like Bettendorf and Ely.

While there’s no state law in Iowa requiring renters insurance, nor is there a national law, some landlords may require their tenants to purchase renters insurance to protect their personal belongings and reduce the risk of disputes.

At Property Nest, we recommend renters insurance for all renters in Hawkeye State to give them peace of mind in the event their belongings are stolen or destroyed.

According to PropertyNest research, the national average cost of basic renters insurance is about $17 per month, while the average price in Iowa is lower at just $15.38 per month.

We’ve compared the best renters insurance companies in Iowa state.

Compare Renters Insurance in IA

The Best Renters Insurance Companies in Iowa

• Lemonade – Best for Online and Mobile Services
• Allstate – Best for Retired Renters
• State Farm – Best for High Policy Limits
• Farmers – Best for Customer Support
• Amica – Best for Customizable Coverage
• Nationwide – Best for Riders
• American Family – Best for Pet Owners

Lemonade: Best for Online and Mobile Services

You may not have heard of Lemonade because they’re a relative newcomer in the world of renters insurance, but they’ve been building a reputation for providing quality insurance with modern convenience.

We chose them for our list of the best renters insurance companies in Iowa because they have prioritized online and mobile services that make it easy to get a quote, buy a policy, and file a claim.

Iowans who prefer to do business online or using their mobile devices will appreciate Lemonade’s streamlined services and speedy response times.

Renters will also appreciate Lemonade’s affordable pricing and commitment to giving back–the company donates unclaimed premiums from policyholders to charity annually.

Lemonade says that its basic renters insurance coverage starts at just $5 per month, making it affordable for renters at every income level.

If you add additional coverage or schedule valuables, you should expect that your cost will increase.

Read a full Lemonade home insurance review.

It’s always helpful to list the pros and cons of any insurance provider before buying a policy, so here are the pros and cons of Lemonade as we see them.

Allstate: Best for Retired Renters

Allstate is part of the Fortune 500 and one of the biggest and most reliable insurers offering renters coverage in Iowa.

They offer several discounts, and we chose them for our list because of a special discount that helps retirees afford renters insurance.

We also like that they have a free mobile app and have prioritized online accessibility, so it’s easy to get a quote, buy a policy, or file a claim on your renters insurance.

The average cost of Iowa renters insurance with Allstate is just $85 per year, which works out to $7/month, well below the national and state averages.

Read a full Allstate renters insurance review.

Here are the pros and cons of Allstate as we see them.

State Farm: Best for High Policy Limits

State Farm has been providing insurance for a hundred years, having gotten its start providing automobile insurance.

The company has a long history of on-time claims payment and customer service and has received high financial ratings across the board.

We chose it for our list because it’s the company that offers the highest coverage limits for renters and is, therefore, best for renters whose belongings may require a higher policy limit than the standard renters insurance policy.

We also like that their prices are affordable.

The average annual cost of a policy with State Farm in Iowa is just $70 per year or $6 per month, which puts it well below the state and national averages.

Here are some pros and cons to consider before you choose State Farm as your renters insurance company.

Read a full State Farm renters insurance review.

Farmers: Best for Customer Support

For 95 years, Farmers Insurance has provided auto, homeowners, and renters insurance coverage.

We chose them for our list because their customer service is highly rated by consumers, and they have a low level of customer complaints, well below the national average.

We also like Farmers because they offer some unique discounts that can help first responders and non-smokers save on their renters insurance.

The average cost of renters insurance with Farmers in Iowa is $150 per year, which puts it slightly above the state average before discounts, and we should note that their provided average is for Des Moines, where premiums are higher due to higher risk.

Here are the pros and cons of Farmers for you to consider before choosing them as your renters insurance company.

Amica: Best for Customizable Coverage

Amica is one of the oldest companies on our list has gotten its start all the way back in 1907.

We chose Amica for our list because they have an array of riders that make it easy to customize your renters insurance.

We also like that the cost is lower than average, and there is no upper limit for renters insurance coverage.

The average cost of Amica basic renters insurance is $16.35 per month, which aligns with the Iowa state average.

Note that signing up for paperless billing and automatic payments will get you two discounts that can be layered to reduce your premium.

Now, let’s review the pros and cons of Amica renters insurance.

Read a full Amica renters insurance review.

Nationwide: Best for Riders

Nationwide is one of the best-known companies on our list, with a long history of reliable claims payments and coverage.

We chose them for our list because they offer unique riders that provide renters with coverage that’s closer to what they would get with homeowners insurance than with a traditional renters insurance policy.

In addition to providing robust coverage and peace of mind, Nationwide’s renters insurance is reasonably priced, and their customer service is good.

According to Nationwide, the average cost of Iowa renters insurance is just $9 per month or $94 per year, putting it well below the state and national averages.

Of course, you’ll need to keep in mind that if you add riders or live in a high-risk area, your premium may be higher than the average.

It’s time to review the pros and cons of choosing Nationwide as your renters insurance company.

American Family: Best for Pet Owners

American Family Insurance got its start back in 1927, selling automobile insurance to farmers at affordable prices, and has since expanded its offerings to include renters insurance and other coverages.

We chose American Family for our list because they are the only company to offer a rider that protects renters’ pets and reimburses them for a portion of pet-related expenses.

We also like that they offer several unique discounts, including one that rewards generational loyalty.

The average cost for Iowa renters insurance with American Family is $115 per year, putting it just slightly below the state average, and you can reduce your premium further with discounts.

Here are the pros and cons of American Family renters insurance as we see them.

Is Renters Insurance Mandatory to Rent an Apartment in Iowa?

In Iowa, renters insurance is not mandatory by law to rent a house or an apartment.

However, it is strongly recommended by landlords and renters alike.

Considering that renters insurance is generally very affordable, depending on your coverage limits, it’s definitely a worthwhile investment for renters who want peace of mind and financial protection during their tenancy.

Why Should Iowa Renters Purchase Renters Insurance?

Renters insurance might seem like an extra expense, but now that you know who we’ve chosen as the best insurance companies in Iowa, let’s talk about why we believe every renter should purchase renters insurance.

1. Your landlord’s property insurance does not cover the loss or damage of your property, only theirs.
2. Most people don’t have enough money saved to pay to replace their belongings if they need to.
3. Renters insurance costs less than replacing your personal property.
4. You’ll be covered even if your belongings are not in your rental unit when they are damaged or stolen.
5. Adding extra coverage for high-cost items like artwork and jewelry is easy.
6. Renters insurance protects you against liability if someone is hurt while in your rental property, including covering some medical expenses.
7. You’ll have the peace of mind of knowing you won’t need to pay out of pocket if something happens to your property.

As we have noted, the monthly cost of renters insurance in Iowa is less than the cost of a large pizza, meaning that in exchange for a few dollars a week, you can buy enough coverage to replace your personal property, protect your liability, and even pay for you to live someplace else if your rental becomes uninhabitable.

What is the Average Cost of Renters Insurance in Iowa?

For renters in Iowa, renters insurance can be a great way to protect possessions and themselves from unexpected events.

While renters insurance policies vary in coverage, the average cost of basic renters insurance in Iowa is around $15.38 per month or $184.56 a year.

This can depend on several factors, such as where you are renting, the size and value of the property, and the type of coverage chosen.

Regardless of these details, renters insurance is typically a much more affordable option than being uninsured or paying for large unexpected repair bills associated with renters damage.

Renters should explore renters insurance options carefully to determine which policy may be best for them.

What Factors Affect the Rates of Renters Insurance?

We have done our best to provide average costs for each insurance company on our list, but you should know that there are four factors that can impact how much your renters insurance costs.

• Coverage limits. You should estimate the total cost to replace your belongings and choose a limit that will protect you; choosing a higher limit will add to your cost.
• Deductible. Your deductible is the amount you will pay out of pocket before your insurance company reimburses you; a policy with a low deductible will cost more than one with a high deductible.
• Riders. Most insurance companies offer riders additional coverage, including protection for high-value items, ID restoration, or food spoilage; any rider you add will increase your premium.
• Location. The area where you live is a factor in determining your premium, with costs being higher for those living in high-risk areas.

How Much Renters Insurance Coverage Do You Need in Iowa?

The amount of renters insurance coverage you need depends on your belongings' value, which is why we recommend taking an inventory that includes the following things.

• Furniture
• Small appliances & kitchen gear
• Electronics
• Books
• Home decor items
• Clothing
• Jewelry (not high-cost items)

You may want to take photographs to document what you own and total the actual cash value (what you paid) and replacement value (what it will cost to replace each item) to determine how much coverage you need.

Keep in mind that high-value items will need to be scheduled separately at an additional cost.

What Does Renters Insurance Cover in Iowa?

Any Iowa renter who buys renters insurance should clearly understand what is typically covered by renters insurance and what isn’t covered.

Here are the things that are covered by the typical renters insurance policy.

• Damage or theft of personal property. If your personal belongings are damaged, destroyed, or stolen, your policy will cover the loss based on the type of coverage you buy (actual cash value vs. replacement cash value) and your policy limits.
• Personal liability. If someone is injured in your rental, your policy will provide some protection against your personal liability for the event.
• Medical coverage. In addition to covering personal liability, renters insurance will cover a portion of your guest’s medical expenses related to a covered injury.
• Alternative living expenses. If your rental should be damaged to the point where it is not habitable, your renters insurance will pay for you to live elsewhere while repairs are completed, or you find a new place to live.

Here are some things that are not covered by renters insurance.

• Non-covered events. While most property damage is covered, there are certain events that are not covered by renters insurance, including floods and personal negligence.
• Damage above the policy limit. Your policy limit dictates the maximum amount reimbursable in the event of a claim; if your policy limit is $15,000, that’s the maximum amount you will be reimbursed, and anything over that limit will be your responsibility.
• Unscheduled valuables. Certain high-value items, including jewelry and art, must be scheduled separately at an additional cost; unscheduled valuables will not be covered.

You should always read the fine print of your renters insurance policy to ensure that you understand your coverage and policy limits.

Synopsis

At Property Nest, we recommend renters insurance for every renter in Hawkeye State who rents an apartment, house, or condo.

Remember, your landlord’s property insurance is not there to protect you, which is why you must purchase your own coverage for peace of mind.

Renters in Iowa who live near the water may want to consider adding flood insurance to their regular renters insurance since flood coverage is not included with standard renters insurance.

We recommend obtaining at least three quotes from different carriers and comparing costs and coverage before you buy a renters insurance policy.

Make sure to ask about discounts and take advantage of all that apply to you to minimize your cost and make renters insurance affordable.

Methodology

We thoroughly researched the state's top renters’ insurance companies and narrowed the list down to those that operated in Iowa. We rated them on criteria that included ease of use, ratings, financial strength, customer, and affordability. Read our full in-depth renters insurance methodology.

How We Ranked and Picked the Best Renters Insurance Companies in Iowa

We used key criteria to choose the best renters insurance companies in Iowa.

Coverage

Renters insurance coverage can vary from company to company, so we prioritized companies with various coverage levels and options to allow Iowa renters to customize their coverage.

Price

Cost is top-of-mind for many renters, so we chose companies with affordable rates for renters insurance compared with state and national averages.

Discounts

Discounts are one of the easiest ways to reduce the cost of renters insurance, which is the reason that we looked for companies that provide at least two discounts on renters insurance, particularly those that offer discounts that apply to most renters.

Customer Support

Every Iowa renter deserves a stress-free experience when buying renters insurance, requesting support, or filing a claim, so we prioritized companies with high customer service ratings and an array of support options.

Online & Mobile Services

Easy online and mobile access to quotes, policy information, and claims filing and tracking are essential to today’s renters, and we made sure that the companies we chose had helpful websites and well-designed online and mobile services.