Homeowners insurance is one of the most important things you can have if you own a home. It provides you with protection so if your precious home is destroyed you have enough money to rebuild or purchase another home and replace your personal possessions as well. Get some facts on Iowa home insurance, including average rates and money-saving tips.
Is it a Waste of Money If It’s Never Used?
Homeowners who go through their life never using their home insurance are very lucky. Home insurance is often used for more than just a total loss like fire or tornado. Sometimes parts of homes are destroyed by windstorms, or someone falls on your property and needs medical attention. These are both instances where your Iowa homeowners insurance comes in handy.
Even if you never use your home insurance, it provides security in knowing that in the case of a loss, you won’t be homeless. If the home is used as collateral on a mortgage loan, then the homeowner is required by the bank to carry home insurance with a value at least the amount owed on the loan. Home insurance is a lot like life insurance in that it’s something you never want to have to use but something you’re grateful to have when needed.
Iowa Homeowners Insurance Rates
The harsh weather often found in Iowa increases the possibility of property damage from frozen pipes or flooding. Although flood insurance is not included in a typical homeowner’s policy in Iowa, there are companies that can customize policies while still offering a good and affordable policy.
Surprisingly enough, rates for Iowa homeowner’s insurance are not as high as one would expect. While the highest annual rates for 2014 ($2,055) were found in Florida, the lowest annual rates ($574) were in Oregon. The annual rates for Iowa home insurance in 2014 was $854, which is quite a bit less than the national average of $1,132. Rate information is from the Insurance Information Institute.
Saving Money on Home Insurance
We all try to save money any way we can. Here are a few things you can do to get the best possible rates on your Iowa homeowner’s insurance.
- Ask for a higher deductible. If you have a lower deductible, you’ll have to pay less in case of a loss, but your premiums are going to be much higher. Choose a deductible that lowers your premiums but would still be easy to pay if necessary.
- Keep good credit. All those horror stories you’ve heard about insurance companies checking your credit are typically true. Most of these insurance companies will also offer you a discount if you have good credit.
- Upgrade your home. Install deadbolts, window locks, alarm systems, smoke detectors and similar things that make your home safer.
- Avoid high-risk items. Things like trampolines and swimming pools are considered high risk due to the possible liability issues, and will result in higher premiums. Some insurance companies also charge higher premiums for some dog breeds.
- Bundle insurance. Consider using the same company for all your insurance needs.