On average, Iowans are paying $1,202 every month on homeownership costs. There are 1.4 million homes in the Hawkeye State, 71% of which are occupied by owners.
- Population: 3,156,145
- Average value of homes that’s occupied by owners: $137,200
- Households: 1,251,587
- Average household income: $56,570
- High school grad or higher, percent of people age 25 years +: 92%
- Average travel time to work: 19 min
The average premium amount was sourced from the latest data of the Insurance Information Institute, and the statistical data from the U.S. Census Bureau.
It is said that Iowa can have all four seasons within a timeframe of seven days. The chances of floods, fires, and extreme weather conditions such as tornadoes and winter storms are high throughout the year anywhere in the state. According to the U.S. Department of Commerce, Storm Prediction Center, National Weather Service, Iowa had a total of 57 tornadoes in 2017. The National Interagency Fire Center recorded that IA had 427 wildfires in the same year burning through 7,216 acres.
However, the insurance rates have stayed low because people take sufficient precautions such as installing sprinkler systems and upgrading their homes with impact-resistant material, which keeps the damage at bay from common hazards. While the premiums are low, it is still vital that you get coverage from a good insurer that can financially support your claims and provide you with their policies at a decent price. Our free online comparison tool helps the research process by providing a list of insurers available in our area.
Home insurance rates: IA vs Nationwide
According to Insurance Information Institute (III), homeowners insurance companies that hold the most market share in direct premiums written in Iowa in 2017 are Nationwide, State Farm, American Family, Allstate, Iowa Farm Bureau and IMT, to name a few.
The average home insurance premium paid by an Iowa homeowner is $945, which comes out to $78.75 per month, according to III’s records from 2016 (latest available data). Comparatively, the average premium paid by the average U.S. homeowner is $1,192, which is roughly $99 per month. Iowa is ranked 38th out of 51 states in average homeowners insurance, highlighting that IA residents pay less in home insurance premiums than the average American.
It’s worth noting that these averages are meant to serve as a guide only. It may very well be that your quote will fall below or above this number as rates are calculated based on where your home is located and the risks that are associated with the location, amongst other things considered.
Average Iowa Home Insurance Premiums
|National annual average||$1,192||$1,173||$1,132|
Our Top Providers In Iowa
Among the companies that hold high market shares, we chose three that we found to be the best based on several factors such as coverage options, discounts, website experience, policies, prices, financial strength, customer experience and reviews.
According to III, State Farm holds 27 percent of the home insurance market share in the state, with a total of about 200 million in direct premiums written in 2017 alone. It was established in 1921 as an auto insurance provider and grew to become the largest insurance provider in the country. It is our top choice because it came out to be the best all-around service in the state.
Consumers have been satisfied by State Farm’s claim handling procedures, getting excellent feedback as a result, according to Consumer Reports.
It provides excellent discounts such as a bundling discount of up to 17 percent if you choose to get both auto and home insurance from State Farm. It also provides discounts if you install precautionary systems such as a fire alarm system, a sprinkler system, a security alarm system and impact resistance against wind. However, our research revealed that their basic home insurance is more expensive than Nationwide and American Family.
Its website contains a lot of informative articles about protecting your house against hazards. The best part of its website is the HomeIndex tool, which lets you control and track coverage options you have opted for. You can also file a claim from the tool. AM Best gave State Farm a rating of A++ (Superior) – the highest score – in financial strength.
Nationwide’s history traces back to 1925. It holds the second largest market share in homeowners insurance in Iowa at 13 percent with a total of about 100 million in direct premiums written in 2017, according to III. Nationwide earns our second position as well because of its strong customer support and claim handling performance.
It may not be the best in some other states, but in Iowa, it excels at providing you with the best overall package for home insurance along with a trustworthy and satisfactory claim response. With an A+ (Superior) rating from AM Best, its financial strength is proven to be stable.
Another prominent aspect of Nationwide is its range of coverage options. It offers Brand New Belongings coverage which lets you get reimbursements for brand-new items in case of damage or theft. There is also Better Roof Replacement coverage, which will reimburse you for making a better and safer roof if it is damaged. This is handy because roofs get commonly damaged due to wind during tornadoes which have a relatively high occurrence in IA.
Nationwide’s website user experience is excellent because it provides visitors with all the information about its policies. It also provides a quote tool, which is accurate and saves you the effort of calling an agent. You can also find a portal on the website where you can pay bills and check and manage the policies you opted for.
American Family started in 1927 as an auto insurance provider for farmers. It now takes up 8.4 percent of the home insurance market in the state, according to III. Its value is in its policies and website, where it provides you with educational tools, calculators, and helpful information through articles.
The prices it offers for standard insurance are around the same as State Farm and Nationwide, but where it lacks is the discounts. According to our research, it’s nearly impossible to save more than 5 percent on your annual savings, while companies like State Farm give you a better discount range of up to 20 percent.
The coverage options it provides in addition to basic home insurance are reimbursement of the full value of damaged belongings, sewage coverage, and identity theft coverage which pays for the recovery procedures. A unique option that only American Family provides is coverage for home-based businesses in which you get even more personal belongings coverage. This makes it ideal for businesses that are run fully or partially from private homes.
With a financial strength rating of A (Excellent) from AM Best, it can easily handle claims. Its customer support is good, which is why it is rated 3 (About average) out of 5 Power Circles by esteemed reviewer JD Power.
Iowa Home Insurance Companies: Market Share and Summary of Ratings
|Rank||Insurer||Market Share %||AM Best||S&P||JD Power|
|7||West Bend Mutual||3.3||A||NR||NR|
Source: Insurance Information Institute, AM Best, S&P, JD Power
Homeowners insurance is one of the most important things you can have if you own a home. It provides you with protection in the untimely event that your precious home is destroyed by a catastrophe. Learn even more about 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 a 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 of 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.
More on premiums
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 homeowners policy in Iowa, there are companies that can customize policies while still offering a good and affordable policy.
Surprisingly enough, rates for Iowa homeowners insurance are not as high as one would expect. While the highest annual rate for 2016 ($1,967) is found in Louisiana, the lowest annual rate ($659) is in Oregon, according to III. As mentioned in the beginning of this article, III ranked Iowa as the 38th most expensive state for home insurance out of 51 states in 2016 with an average monthly premium of about $79, which is $20 cheaper than what the average American pays on a monthly basis.
Saving Money On Protecting Your Home
We all try to save money in any way we can. Here are a few things you can do to get the best possible rates on your Iowa homeowners 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.
Consider using the same company for all your insurance needs.
Read our article, 25 Tips for Finding Cheap Homeowners Insurance, to learn more on how to save money when getting your house insured.
For more assistance, please contact your local state department of insurance:
Iowa Insurance Division
- Contact Form