Best homeowners insurance in Iowa for 2022

We looked at average costs, coverage availability, and customer satisfaction ratings to find the best homeowners insurance companies in Iowa.

Gianetta Palmer

By

Gianetta Palmer

Gianetta Palmer

Freelance contributor

Gianetta Palmer is a freelance writer who lives in the Georgia mountains. Her writing on health and car insurance, has appeared on numerous sites.

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By

Pat Howard

Pat Howard

Managing Editor & Licensed Home Insurance Expert

Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

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Iowa doesn’t suffer from that many natural disasters, but with its location near Tornado Alley and the Missouri and Mississippi Rivers, damage from heavy winds and flooding isn’t uncommon. For that reason, Iowa residents should consider a solid home insurance policy and additional flood protection. 

The average cost of homeowners insurance in Iowa is $1,830 per year or $153 a month. This is comparable to the national average of $158 a month, making Iowa a relatively affordable state for home insurance.

Compare home insurance rates in Iowa

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However, the cost isn’t the only factor to consider when choosing a home insurance company. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Iowa.  

Best homeowners insurance companies in Iowa

Of the companies we looked at, American Family has the lowest rates, with an average annual policy cost of $1,199 per year — over $600 less than the statewide average in Iowa. Auto-Owners Insurance has the next lowest average rates at $1,425 per year.

Policygenius analyzed thousands of quotes from the 5 largest Iowa insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Iowa residents to find the best homeowners insurance in Iowa.

Company

Average yearly cost

J.D. Power Rating

State Farm

$2,367

835

Nationwide

$2,018

812

American Family

$1,199

831

Farm Bureau Insurance

$2,395

--

Auto-Owners Insurance

$1,425

831

State Farm

State Farm logo

There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.

Pros

  • Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage

  • Get up to $1 million in personal liability coverage

  • Score discounts for bundling, installing security devices, and choosing a high deductible

  • File and track claims online, over the phone, in person, or through its mobile app

  • High customer satisfaction and financial strength ratings

Cons

  • No discounts for first-time homebuyers or going a year without a claim

Why State Farm tops our best list

State Farm is one of the top-rated insurance companies in the U.S. due to its high customer satisfaction and financial strength ratings from J.D. Power. Additionally, State Farm offers excellent coverage add-ons, including up to $1 million in personal liability coverage. File claims online, through its easy-to-use mobile app, or by calling a State Farm representative.

How to get a quote

Online through State Farm

Nationwide

Nationwide logo

Nationwide offers flexible home insurance policy options for every home type and income level. And we love its slew of discounts for everything from having a newish roof to living in a gated community.

Pros

  • Offers lots of coverage add-ons, including flood and earthquake insurance

  • Option to rebuild roof with stronger, safer materials after a covered loss

  • Score discounts for living in a gated community, making home renovations, having a newer roof, and more

  • Seamlessly submit claims online or through its mobile app

  • Above-average claims satisfaction rating

Cons

  • Below-average customer satisfaction ratings

  • Water backup coverage is more expensive than with other insurers

Why Nationwide tops our best list

We love the fact that Nationwide customers who suffer a covered loss have the option to rebuild their roofs with stronger, safer materials. Nationwide also gives customers numerous ways to save, including discounts if you live in a gated community, have a newer roof, renovate your home, and more.   

How to get a quote

Online through Policygenius or Nationwide

American Family

American Family logo

American Family's status as the 7th largest home insurance provider in the U.S. speaks to its popularity and reputation. Our fave perk? Its diminishing deductible program that lets you earn credits for every year you go without filing a claim.

Pros

  • Unique coverage add-ons, like matching siding insurance and hidden water damage coverage

  • Save up to 20% on home insurance and 29% on auto insurance for bundling the policies together

  • Earn a $100 credit toward your deductible for ever year you go without filing a claim

  • File claims online or on its mobile app — with 24/7 claims support

Cons

  • Doesn't offer extended or guaranteed replacement cost coverage

  • Above-average customer complaints according to the NAIC

Why American Family tops our best list

American Family customers who bundle home and auto policies save up to 20% on home insurance and 29% on auto insurance. You can also earn a $100 credit toward their deductible each year you go without filing a claim. American Family also offers several high-quality additional coverages, including matching siding insurance and hidden damage coverage. 

How to get a quote

Online through American Family

Farm Bureau Insurance

Farm Bureau Insurance logo

Farm Bureau Insurance offers solid coverage options, a slew of insurance products, a one-deductible perk for bundling your home and auto policies together, and exceptional customer service.

Pros

  • Offers a slew of insurance products on top of home insurance — including auto, life, and farm insurance — to keep all of your policies with one company

  • High-quality coverage add-ons, including extended replacement cost and equipment breakdown coverage

  • Score discounts for having a new home or roof, installing safety devices, and being a loyal customer

  • Pay just one deductible if your home and car are damaged in the same incident and you bundle your policies

  • Industry-best customer service ratings

  • Low rate of customer complaints

Cons

  • Farm Bureau membership is required for coverage

  • Minimal information about coverage offerings available online

Why Farm Bureau Insurance tops our best list

Farm Bureau Insurance customers can keep all policies (auto, life, and farm) with one company, saving time and money. Customers can benefit from premium discounts like having a new home or roof, installing safety devices, and being a loyal customer.  Coverage add-ons include extended replacement cost and equipment breakdown coverage.

How to get a quote

Online through Farm Bureau Insurance

Auto-Owners Insurance

Auto-Owners Insurance logo

Auto-Owners is the 12th largest home insurance provider in the U.S. thanks to its low rates, numerous discounts, and robust coverage options — including inland flood insurance.

Pros

  • Excellent coverage add-ons, including inland flood insurance, guaranteed replacement cost, and equipment breakdown coverage

  • Flood insurance covers belongings in your basement — a rare find

  • Save on premiums by bundling policies, paying off your mortgage, choosing a high deductible, having a backup generator, and more

Cons

  • Can't file claims online — you must call or visit an agent to get started

Why Auto-Owners tops our best list

Auto-Owners Insurance customers receive premium discounts for bundling auto and home policies, paying off their mortgage, choosing a high deductible, having a backup generator, and more. Additional coverages include inland flood insurance — a rare find — guaranteed replacement cost, and equipment breakdown coverage. One major perk offered by Auto-Owners is its comprehensive flood coverage that protects belongings in your basement — a rarity with flood insurance.

How to get a quote

Online through Auto-Owners Insurance

Cheapest homeowners insurance companies by city in Iowa

Looking at average home insurance costs for the 15 most popular insurers in Iowa, we found that the cheapest homeowners insurance companies in the state are American Family, Farmers, and Auto-Owners Insurance.

The average Auto-Owners’ rate in Cedar Rapids is $1,171 per year — over $600 less than the state average. Meanwhile, residents in the state capital of Des Moines enjoy average policy costs of $1,199 per year with American Family.

City

Company

Average yearly cost

Ackley

Farmers

$1,129

Ackworth

Allstate

$1,037

Adair

American Family

$1,199

Adel

Allstate

$1,107

Afton

American Family

$1,199

Agency

Farmers

$1,105

Ainsworth

Farmers

$1,100

Akron

American Family

$1,199

Compare home insurance rates in Iowa

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Shopping for homeowners insurance in Iowa

Shopping for home insurance in Iowa may seem confusing because of all of the options to choose from, but with help from the experts at Policygenius, the process can be extremely easy. We can help you find the best coverage at the right price.

In this section, we break down the average annual home insurance rates in Iowa for different coverage and deductible levels and the cheapest and most expensive home insurance companies for dog and pool owners.

Iowa home insurance costs by coverage amounts

Dwelling coverage is the part of your home insurance policy that pays to repair or replace your home after a covered loss. Your dwelling coverage amount should be equal to your home’s replacement cost, which is the amount it would cost to rebuild your home from the ground up.

With average Iowa home prices approaching the $200,000 range, homes with dwelling coverage limits of $100,000 to $200,000 can expect to pay $74 to $112 each month for home insurance. Meanwhile, a home with $400,000 in dwelling coverage is $193 per month.

Dwelling coverage amount

Average yearly cost

$100,000

$884

$200,000

$1,344

$300,000

$1,830

$400,000

$2,313

$500,000

$2,808

Personal liability coverage is the portion of your home insurance policy that pays for medical, legal, or repair bills in the event you’re legally responsible for someone’s injury or property damage. 

Liability coverage amount

Average yearly cost

$100,000

$1,818

$200,000

$2,121

$300,000

$1,830

$400,000

$2,339

$500,000

$1,740

Iowa home insurance costs by deductible amount

Your deductible is the amount you’re responsible for paying your home insurance provider before they reimburse you for a claim. A lower deductible means higher monthly payments, but less out-of-pocket expenses during the stressful times after a claim.

As noted in the table below, Iowa residents can save around $250 on home insurance by choosing a $2,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$1,886

$1,000

$1,830

$2,000

$1,635

Home insurance discounts in Iowa

The crime rate in Iowa is lower than other states, but there’s always a possibility of break-ins or further damage to homes. Many insurance providers discount your premiums if your house has certain features like deadbolt locks, smoke detectors, and home security systems.

Discount

Average yearly cost

Dead bolt

$1,830

Smoke alarm

$1,819

Burglar alarm

$1,785

Home insurance companies in Iowa for dog owners

Pet ownership provides many opportunities for bonding and spending quality time together. It can also affect how much you pay for your home insurance. Some companies charge higher rates for certain aggressive breeds and could even deny your application for home coverage if you own one.

With an average rate of $1,209 per year, American Family has the cheapest home insurance rates in Iowa for a home with a dangerous dog breed, while Farm Bureau Insurance’s average yearly rate is almost $2,495 — more than double the lowest rate.

Company

Average yearly cost

American Family

$1,209

Auto-Owners Insurance

$1,425

Nationwide

$2,018

State Farm

$2,367

Farm Bureau Insurance

$2,395

Home insurance companies in Iowa for poor credit

Poor credit can be bad news when it comes to home insurance rates. A few late or missed payments on credit cards, cars, or monthly rent can impact you financially for many years. Insurance companies consider a bad credit score to be an indicator of risky behavior and an increased risk of filing an insurance claim.

With an average rate of $1,949 per year, American Family has the cheapest home insurance rates in Iowa for a homeowner with poor credit. Meanwhile, Auto-Owners’ rates are the highest of the insurers we reviewed, with a $14,004 yearly rate.

Company

Average yearly cost

American Family

$1,989

Nationwide

$2,563

Farm Bureau Insurance

$3,571

State Farm

$4,069

Auto-Owners Insurance

$14,004

Home insurance companies in Iowa for pool owners

Your home insurance rate may also be higher if you have a swimming pool, as some insurance providers consider swimming pools a liability risk, meaning there’s a greater likelihood of liability claims. 

With an average rate of $1,208 per year, American Family has the cheapest home insurance rates for Iowa homes with a swimming pool, while Farm Bureau Insurance has the most expensive rates at $2,395 per year.

Company

Average yearly cost

American Family

$1,208

Auto-Owners Insurance

$1,425

Nationwide

$2,018

State Farm

$2,367

Farm Bureau Insurance

$2,395

How to buy homeowners insurance in Iowa

One of the best ways to buy home insurance in Iowa is by comparing quotes online. But how do you know which insurer to choose? We’ve included our favorite tips in the list below to help you find the best coverage solutions at the best price.

  1. Reach out to a licensed Policygenius agent. Our home insurance experts are ready to help you find affordable coverage that protects you and your valuables against damage or loss, and can even suggest add-on coverages tailored to your needs.

  2. Consider purchasing flood insurance. Iowa doesn’t experience a lot of natural disasters, but with its location between the Missouri and Mississippi Rivers, flooding can be an issue. A Policygenius agent can explain how flood insurance is separate from a homeowners policy and recommend how to obtain flood insurance for your home.

  3. Figure out how high of a deductible you can afford.A higher deductible means you’ll pay less upfront for your insurance, but a more significant chunk when it's time to file a claim. A Policygenius agent can help you choose a deductible that works best with your budget.

  4. Compare quotes from a Policygenius agent.Once you’ve identified your coverage needs, limits, and deductibles, a Policygenius agent will send over quotes from top companies, and answer any questions you may have about the quotes.

  5. Sign the policy, and pay your first premium. After you’ve settled on the company that works best for you, Policygenius will do all of the paperwork for you. We’ll even cancel your old policy if it isn’t expired yet.

Compare home insurance rates in Iowa

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Frequently asked questions

What is the average home insurance cost in Iowa?

The average home insurance rate in Iowa is about $153 a month for $300,000 in dwelling coverage. That’s almost comparable to the national average of $158 a month, meaning homeowners in Iowa are getting their home insurance at a relatively affordable price.

Is it required for me to have home insurance in Iowa?

It is not legally required to have home insurance in Iowa, but many mortgage lenders require it before extending a home loan to protect their investment. Even though you don’t have a loan on your home, without a home insurance plan, any damage to your home will come out of your pocket.

How can I pay less for my homeowners insurance in Iowa?

One of the easiest ways to lower your homeowners insurance in Iowa is by asking about available discounts with your insurance company. For savings up to 25% with some insurers, consider bundling your home and auto policies into one plan and choose autopay and e-billing for further discounts. Comparing online quotes can save you even more money when you’re ready to search for a new insurance provider.

Methodology

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

  • Dwelling: $300,000

  • Other structures: $30,000

  • Personal property: $150,000

  • Loss of use: $60,000

  • Liability: $300,000

  • Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Author

Freelance contributor

Gianetta Palmer

Freelance contributor

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Gianetta Palmer is a freelance writer who lives in the Georgia mountains. Her writing on health and car insurance, has appeared on numerous sites.

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