More on Home Insurance
More on Home Insurance
The cost of homeowners insurance in Iowa is $1,535 a year for the average amount of coverage. Iowa residents can compare rates from multiple companies with Policygenius.
Published August 21, 2020|7 min read
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Homeowners insurance is essential financial protection for the 71% of Iowa residents who own a home. When shopping for homeowners insurance, homeowners in The Hawkeye State should keep in mind the state’s penchant for heavy snowfall, tornados, and intense wind and ice storms.
The statewide average cost of homeowners insurance in Iowa is $1,535 per year, but policy premiums can differ greatly based on specific factors related to your home and the details of your policy. Your rates will be directly impacted by your home’s condition and style of build, its location, your credit and claims history, and your policy deductible amount. Rates also vary from company to company for the same level of coverage, which is why it’s so important to compare policies from different companies — that’s where we come in.
To help simplify your shopping experience, Policygenius reviewed the five best homeowners insurance companies in Iowa offered through our website. We also calculated the cheapest and most expensive cities in Iowa for home insurance based on hundreds of submitted quotes.
The average cost of homeowners insurance in Iowa is $1,535 for $100,000–500,000 in coverage
The cheapest homeowners insurance company in Iowa is Stillwater, according to Policygenius quote data
When deciding on policy coverage, Iowa residents should consider the state’s snowy winters and risk of tornados and windstorms
Although cost is important, it shouldn’t be the only factor you consider when shopping for homeowners insurance. Your house is your most valuable asset, so you want a homeowners insurance company that not only offers affordable rates, but also good customer service and high claims satisfaction. A great homeowners insurance company is financially stable, has dependable customer service, affordable coverage, flexible policy options, and high quality discounts.
Stillwater provides the cheapest Iowa home insurance quote of any Policygenius partner carrier. The average quote with Stillwater is $1,102 for $100,000–500,000 in coverage, which is over $400 cheaper than the statewide average of $1,535. If you’re an Iowa homeowner looking for a budget pick, Stillwater may be your best bet.
Read our full review of Stillwater here
Iowa residents can insure their homes with Encompass, a company with coverage as good as any company we’ve reviewed. Encompass has three separate coverage packages that include all of the primary coverages you find in a standard home insurance policy, as well as several coverage enhancements and policy add-ons like replacement cost coverage, water backup protection, identity theft protection, fine art protection, and more.
Read our full review of Encompass here
Due to Iowa’s severe weather, homeowners should consider maximizing coverage for the structure of their home. Safeco has four comprehensive tiers of coverage, and all include the option to add extended replacement cost, a policy add-on that increases your home’s coverage limits an additional 25% or 50% if rebuild costs exceed your dwelling coverage amount. Safeco’s “Premier Plan”, its highest level of coverage, includes guaranteed replacement cost, which pays for a rebuild of your home regardless of the price. With its excellent replacement cost coverage options, Safeco may be your best bet against severe property damage from tornadoes, hail, and windstorms.
Read our full review of Safeco here
When it comes to homeowners insurance, the term “high-value home” can be misleading — it doesn’t necessarily mean a McMansion with a view. The term is primarily used as an indicator of how much the home will cost to rebuild — including its exterior structure, flooring, and built-in appliances.
If you live in a high-value home in Iowa, AIG may be the right company for you. AIG offers a “Private Client Group” package, which has all the primary coverage you’ll find in a standard policy — dwelling, other structures, personal property, loss-of-use, liability, and medical payments coverage — but with higher limits of liability and more flexible loss settlements than you’d find in a policy through a standard carrier.
Read our full review of AIG here
One important indicator of an insurance company’s ability to pay out claims in an effective and timely manner is their financial stability, and Travelers is among the highest-rated insurers in that area. With an A++ rating with A.M. Best, Travelers has the highest score a company can receive with the insurance company credit rating agency. Travelers also has high marks with Standard & Poors, which measures long-term financial stability, as well as Moody’s, which measures what the expected losses would be if a company were to go into default.
Read our full review of Travelers here
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When comparing insurance companies, Iowa residents may find that rates differ greatly from company to company for the same level of coverage. A more expensive policy may provide more coverage add-ons in a basic plan than their competitors, but some companies may simply charge more for coverage in certain areas than others.
After reviewing hundreds of quotes submitted with Policygenius, we found that Stillwater is the cheapest insurance company in Iowa with an average annual premium of $1,102 for $100,000–500,000 in coverage. Safeco is the most expensive with an average annual premium of $2,199.
The average cost of homeowners insurance in Iowa will also differ considerably based on the amount of insurance you have for your home. Below is the average homeowners insurance quoted rates for five different levels of coverage.
|Coverage Amount||Average Cost|
|Greater than $500,000||$ 2,683|
Insurance companies will also price policies differently based on where you live. We found Sioux City has the lowest rates in the state with a $1,006 average annual premium for $100,000-500,000 in coverage. The most expensive area on average is Urbandale, a flood-prone city located in the Walnut Creek and Beaver Creek watersheds, with an average annual premium of $1,795.
|Cedar Rapids||$ 1,412|
|Council Bluffs||$ 1,766|
|Des Moines||$ 1,392|
|Iowa City||$ 1,140|
|Mason City||$ 1,101|
|North Liberty||$ 1,640|
|Sioux City||$ 1,006|
|West Des Moines||$ 1,362|
We selected the 20 largest cities in Iowa by population where customers have submitted quotes with Policygenius. Quotes are based on a coverage amount between $100,000 and 500,000.
The Hawkeye State has a penchant for severe weather — Iowa has experienced 45 presidentially-declared natural disasters from 1990 to 2020. Iowa suffers extremes of both hot and cold temperatures, which causes a variety of inclement weather in both summer and winter months.
One of the biggest threats to Iowa residents is tornadoes — the state is located in the so-called Tornado Alley — with Iowa averaging around 50 tornadoes a year. Along with tornadoes, in the summer months intense thunderstorms are frequently met with severe wind and hailstorms, so homeowners should consider purchasing windstorm insurance if their homeowners policy excludes wind and hail damage.
Though Iowa is a landlocked state, in August of 2020 the state suffered a derecho storm, which can cause similar levels of damage as a category one hurricane. The storm brought hurricane-force winds of over 100 mph across the state, damaging both homes and rural farmland. Due to the risk of tornadoes and unpredictable windstorms, Iowa residents should consider purchasing a comprehensive replacement cost policy to ensure their home and personal belongings are fully protected.
Come winter in Iowa, blizzards and heavy snowfall are frequent occurrences. Although homeowners insurance does cover repairs if the weight of snow and ice causes your roof to fall through or damages your foundation, homeowners should try to keep their roofs clear of ice dams and excessive snow.
Iowa residents are at risk of flooding due to the state’s proximity to major rivers, heavy rainfall, and frequent snowstorms. Homeowners insurance does not cover flooding in Iowa or any of the other 49 states. State residents can supplement that gap in coverage by purchasing a flood insurance policy.
Flood insurance can typically be purchased through the same insurance company that insures your home. Most flood policies are sold by private companies but administered by the federal government’s National Flood Insurance Program (NFIP). An NFIP flood policy can cover up to $250,00 for the structure of your home and up to $100,000 for personal belongings.
The Iowa Insurance Division is a valuable resource both forIowa homeowners purchasing coverage for the first time or for those who are already insured. The IID website has helpful information about what to prioritize when selecting your coverage, preparing for natural disasters, and buying flood insurance.
Homeowners insurance companies can cancel your insurance for a number of reasons — maybe the insurance company no longer offers coverage where you live, or maybe they determined your home was too risky to insure after a recent inspection.
If you’re struggling to find coverage, you can get last-resort coverage via a Iowa Fair Access to Insurance Requirements FAIR Plan. The Iowa FAIR Plan Association is an unincorporated mandatory risk-sharing facility that provides basic property insurance to qualified applicants who are not eligible for insurance in the voluntary insurance market. To qualify for an Iowa FAIR Plan, applications must be submitted by a licensed insurance agent.
Not where you live? We've got you covered, check out our guide to homeowners insurance in your state
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