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The so-called "Hawkeye" state can be a fun place to live. Besides being affordable, Iowa offers multiple job opportunities and stunning outdoors.
Are you considering buying a property in this state? Have you already invested in the Iowa real estate market? In both cases, you'll be able to enjoy the benefits this territory offers.
However, you should consider many other things. Like any other state, Iowa faces multiple risks, such as tornadoes and snowstorms, which are the most common natural disasters there.
That's why residents, landlords, and property managers should purchase homeowners insurance to protect their investments.
Since there are many home insurance companies in Iowa, finding the right one can be tedious and time-consuming. Fortunately, we've created a guide to help you pick the best option.
Read on to find valuable information about each company, their coverage options, discounts to save on premiums, and more!
Understanding Iowa Homeowners Insurance
Essentially, a homeowners insurance policy can help you protect your property, including the structure and your belongings.
Different natural events hit Iowa each year. Unfortunately, there are many other hazards. Therefore, you should protect your property and your investment through a comprehensive insurance policy.
This type of coverage pays for damages and losses caused by certain events, easing the financial burden after a disaster.
Average Home Insurance Costs in Iowa
Iowa is an affordable state, so you can expect to pay reasonable rates for homeowners insurance. Currently, the average cost for this type of insurance is $1,318 a year for $250,000 in dwelling coverage.
That's 8% less than the national average, which is $1,428 a year for $250,000 in dwelling coverage according to the latest figures.
Also, the costs of Iowa homeowners insurance policies are cheaper than in surrounding states. In Missouri, the average premium is $1,769 per year for the same amount of coverage. However, it's considerably higher in Nebraska ($2,951).
It's important to know that these costs can vary depending on different factors, such as the age, location, and condition of the property.
The following elements can also influence home insurance costs in Iowa:
- Likelihood of natural disasters
- Coverage limits
- Claims history
- Construction time
- Property value
- Security features
- Additional coverages
- State-specific requirements
- Discounts
Homeowners Insurance vs. Landlord Insurance
When it comes to choosing an insurance policy, landlords and homeowners have two options. Understanding the differences between each one is essential to purchase comprehensive coverage for your property.
Homeowners' insurance covers damages and losses that affect the structure of a property. Depending on the policy terms, this coverage may also offer financial protection to belongings.
However, a homeowners insurance policy doesn't offer enough coverage for landlords. When you rent out your property, you should have other considerations.
Someone else will be living there, so you need to purchase liability insurance for tenants. This type of insurance can help you cover medical expenses if there's an accident on your property.
Also, someone is paying a monthly rent to live on your property. Therefore, you may also need to buy insurance for loss of rental income.
However, landlords may use homeowners insurance to protect their properties in rare cases, which may include the following:
Vacancy
If you have a vacant property, homeowners insurance can protect both the structure and your belongings even if you aren't there. However, you should contact your insurer to report the situation.
Other coverages may be necessary if the property remains vacant for a long time.
Temporary Absence
Imagine a situation where you have to travel for work, so you won't be home for a while. Renting out your property to someone else while you're not there sounds like a great idea, doesn't it?
If you do this, you can choose to keep your homeowners' insurance policy. However, we only recommend it if you plan to return soon.
Transition Period
Homeowners insurance could also be a good option to protect your property during a transition period if you haven't found the right tenant yet. These policies cover damage and loss while you're living there.
Home Sharing
If you plan to share your property with someone else, even if it's just a room, you can also consider a homeowners insurance policy. However, you'll need liability coverage for potential accidents that may affect tenants and guests.
Besides home-sharing coverage, homeowners who rent out only a portion of their properties should purchase an insurance policy with rental income loss protection.
How to Choose an Iowa Homeowners Insurance Company
Are you sure you need homeowners insurance for your property in Iowa? Here's a list of the main considerations to choose the right policy and make sure your investment is always protected.
Unique Policy Needs for Iowa Homeowners Insurance
The best home insurance policy should include coverage for damage caused by the risks you're concerned about. They're often state-related, such as common natural events.
Iowa is hit by multiple natural events each year, including floods, tornadoes, severe storms, winter storms, and landslides. Heat waves and droughts are also common but less threatening.
Your Iowa homeowners insurance policy should include coverage for damage and loss caused by these events, even if you don't live in a high-risk area. If you choose an option with these add-ons, you'll get optimal protection for your property.
These are the coverages that most Iowa home insurance companies offer:
Flood Insurance Coverage
Floods are common in Iowa. However, not all homeowners insurance policies include this coverage unless you buy premium options.
Don't forget to ask your insurance provider if your policy includes flood coverage or consider purchasing this add-on to make sure your property is well-protected.
Hurricane Coverage
Although hurricanes are not as common in Iowa, this state is vulnerable to tornadoes. Many companies offer coverage for these events as part of wind and hail or hurricane insurance.
These alternatives often cover damage and losses caused by storms, tornadoes, and high winds.
Evacuation and Additional Living Expenses Coverage
Many homeowners have to seek temporary housing after a natural disaster. However, this means that they'll spend too much money before they can return home.
If you want to get financial support in these cases, you should purchase evacuation and additional living expenses coverage or add it to your existing policy.
Personal Property Replacement Cost Coverage
Unfortunately, natural disasters aren't the only events that can result in loss. If a fire has damaged your belongings, or you have been the victim of a theft, this coverage can offer financial protection.
However, this only applies to covered losses depending on your policy terms. Request information about this coverage from your insurance provider.
Other Factors to Consider When Assessing Iowa Home Insurance Companies
Do you want to find the best Iowa home insurance company? Check out these tips to make a wise decision:
- Consider your needs: Assess state-specific aspects, such as the likelihood of natural disasters, and your needs as a homeowner or landlord.
- Research Iowa homeowners insurance companies: Search for insurance providers according to your requirements or preferences and evaluate each one. Their websites can be great sources of information about their businesses.
- Compare different coverage options: If you found several insurance providers, compare their offerings, considering their coverages and add-ons to customize your policy.
- Request cost information: How much should you pay for a home insurance policy? Check the costs for each company's premiums and choose one that suits your budget. However, remember that you shouldn't pick the cheapest option if it means your policy won't be comprehensive enough.
- Evaluate the company's financial stability: Independent agencies, such as AM Best, rate companies according to their financial strength or availability. This information can help you know if the insurer can meet its claims obligations.
- Consider the company's reputation: Does the insurer offer good customer support? What are other policyholders saying about its services? Answering these questions can give you a better idea about the firm and help you make an informed decision.
- Ask your friends or family for recommendations: If you're struggling to find an Iowa homeowners insurance company, ask your friends or family for recommendations. Consider their experiences to make the right choice.
- Assess the policy in detail: Finally, review each policy as many times as you can to make sure you're choosing one that suits your needs.
Best Home Insurance Companies in Iowa
Are you ready to find the best Iowa homeowners insurance companies? We'll list the top five options below!
1) Amica
This company has gained popularity over the years for its comprehensive homeowners insurance policies, as they include multiple coverages for enhanced protection. In addition, Amica has earned an A+ rating for financial strength from AM Best and offers dividend-paying insurance options.
Coverage and Features
If you choose Amica as your homeowners' insurance provider and purchase a standard policy, you'll get the following coverages:
- Dwelling protection
- Coverage for damage to other structures
- Personal property coverage
- Additional living expenses (ALE), also known as Loss of Use
- Liability coverage
However, the company also offers a platinum choice with other coverages for homeowners. These are:
- Personal property replacement
- Dwelling replacement cost
- Valuable items extended coverage
- Liability coverage
- Medical payment coverage
- Water backup and sump overflow
- Business property coverage
- Special computer coverage
- Credit card coverage
- Loss assessment plan for those who live in condos or gated communities
Discounts
In addition, Amica offers multiple discounts to help policyholders reduce their monthly insurance expenses. These are:
- e-discount
- Claim-free
- Multi-line
- Alarm system
- New/remodeled home credit
- Loyalty
- Autopay
- Automatic detection devices
2) State Farm
State Farm is also considered one of the best Iowa homeowners insurance companies, as it offers comprehensive policies with multiple coverages, including flood insurance from the National Flood Insurance Program. In addition, this insurer allows customers to combine home and auto insurance to save on their premiums.
Coverage and Features
With State Farm's standard policies, you can get the following coverages:
- Personal property replacement
- Dwelling and attached structures coverage
- Other structures protection
- Additional living expenses (ALE)
- Personal liability coverage
- Medical payments
Plus, the company offers these additional coverages for homeowners who want to customize their policies:
- Inflation guard if there's a rise in construction costs
- Ordinance or law insurance
- Cyber Event, Identity Restoration, and Fraud Loss Coverage (CEIDR)
- Valuable items protection
- Identity Restoration Coverage (IDR)
Discounts
If you're eligible for State Farm's discounts, you could also save on your premiums. These are:
- Roofing discount
- Multi-policy discount
- Claims-free discount
- Home security discount
- Automatic sprinkler discount
- Utility rating discount plan
3) Nationwide
After its founding in 1926, Nationwide became a leading insurance company. This Ohio-based insurer offers multiple insurance products with coverages that just a few firms include. Also, its rates are low compared to most competitors.
Coverage and Features
Nationwide offers the following coverages through its standard policies:
- Dwelling coverage
- Other structures protection
- Personal property coverage
- Personal liability coverage
- Guest medical payments coverage
- Ordinance or law insurance
- Additional living expenses (ALE)
- Credit card insurance
Also, this company has additional options for those who want to customize their policies, including the following:
- Flood insurance
- Earthquake insurance
- Brand new belongings
- Identity theft
- Water backup
- Dwelling replacement cost
- Valuable plus
Discounts
Nationwide also offers discounts to help eligible policyholders save on their premiums. These are:
- Prior insurance
- Protective devices
- Smart home
- Roof rating
- Home renovation
- Gated community
- Multi-policy
- Claims-free
4) Lemonade
Lemonade offers multiple insurance options for homeowners but stands out among the competition for its online service. While other insurers require customers to visit local agents to purchase their policies, this company has a convenient and user-friendly mobile app that makes the process easier.
Coverage and Features
Through its standard policies, Lemonade offers the following:
- Dwelling and attached structures coverage
- Other structures coverage
- Additional living expenses (ALE)
- Liability coverage
- Personal property replacement coverage
- Medical payments coverage
Also, this company has the following additional options to improve policies:
- Extra coverage
- Buried utility
- Water backup
- Foundation water backup
- Equipment breakdown
- Extended reconstruction cost
- Swimming pool coverage
Discounts
While it doesn't offer as many discounts as other companies, Lemonade has three options for eligible homeowners. These are:
- Bundling
- Annual payment plan
- Protective devices
5) Allstate
Allstate offers unique coverages to homeowners in Iowa, including options to make properties more eco-friendly when replacing items. Also, this company created an innovative HostAdvantage plan to provide protection against damage and theft even if renters are occupying the unit.
Coverage and Features
These are the coverages you can purchase with Allstate's standard policies:
- Dwelling and attached structures coverage
- Liability protection coverage
- Guest medical protection coverage
- Personal property coverage
Additionally, you can purchase the following extra coverages:
- HostAdvantage
- Flood insurance
- Water backup
- Personal umbrella policy
- Scheduled personal property
- Identity theft restoration
- Business property
- Sports equipment
- Green improvement reimbursement
- Musical instruments
- Yard and garden
- Electronic data recovery
Discounts
Allstate also helps policyholders save on their premiums through the following discounts:
- Easy Pay Plan
- Multi-policy discount
- Claim-free discount
- Early signing discount
- Homebuyer discount
- Welcome and loyalty discount
- Responsible payment discount
Other Notable Iowa Home Insurance Companies
Besides the Iowa homeowners insurance companies we listed above, you can also consider the following options. These insurers also offer excellent policies and many benefits.
- USAA
- American Family
- Liberty Mutual
- Chubb
- Farmers Insurance
Conclusion
After reading this guide, you may still have a question in mind: Is homeowners insurance required in Iowa?
Well, this state doesn't require homeowners to purchase a specific type of insurance. However, a comprehensive policy can protect your property and give you the peace of mind you deserve.
After investing your hard-earned money in your new home or rental unit in Iowa, you don't want to lose it due to a natural disaster or other hazardous events, right?
While a homeowners insurance policy cannot prevent damage, it does offer financial support to pay for damage and loss after the unexpected occurs. Additionally, this coverage can help you meet the requirements set by your mortgage lender.
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