The Best and Cheapest Homeowners Insurance in Iowa

Find the Cheapest Homeowners Insurance Quotes in Your Area

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After collecting thousands of quotes from across Iowa, we found that the cheapest annual premium for a typical homeowners insurance policy was $683. Premiums aren't the only part of your policy you should consider when comparing providers, though. To help you find a homeowners insurance company that matches your needs, we analyzed the state's top insurers by looking at their policy features and customer service reputations in addition to average prices. If you'd like to see rates in your area right away, you can also enter your information in the secure quote box above.

Best homeowners insurance for most people: Farmers

Affordable prices and consistent, if unremarkable, coverage make this insurer the best for most Iowans

The best homeowners insurance for most people in Iowa comes from Farmers. The average price of coverage from Farmers is $854 per year, which is cheaper than the statewide mean by almost half. Although homeowners insurance from this company isn't unique, its balance and affordability makes it stand out from its competitors.

Farmers allows you to customize your standard homeowners insurance policy if you'd like to give yourself additional protection. You can upgrade your policy by increasing your limits or by adding:

  • Eco-friendly coverage: Farmers provides you with up to $25,000 if you experience a loss and want to replace or rebuild your property using green alternatives. Farmers also offers a discount for having green appliances or other features in your home.
  • Replacement cost coverage: If you suffer a loss, any compensation that Farmers awards you won't be deducted for your property's depreciation.
  • Identity theft coverage: This coverage provides up to $28,500 in expenses for legal fees associated with regaining your identity. You also receive credit monitoring and annual identity reports for up to two people. These protections cost an extra $65 per year.
  • Trees and shrubs: With these endorsements, Farmers allows you to increase coverage for damaged trees and shrubs on your property for $750 per item.

Farmers' easily achievable discounts also make it a standout homeowners insurance provider for most people. Each Farmers policy comes with a declining deductibles perk that takes $50 from your deductible each year you have your policy. You can also reduce your prices by qualifying for a number of discounts:

  • Staying claims free for three years
  • Bundling policies
  • Not smoking
  • Owning a home built less than 12 years ago
  • Renovating your home
  • Having a reinforced roof
  • Installing protective devices

Most affordable homeowners insurance: IMT Insurance

People looking for affordable average premiums may consider this insurer

The most affordable homeowners insurance in Iowa is IMT Insurance, which has an average price of $683 per year. This was the lowest premium we recorded from an Iowa-based insurer. Coverage with IMT may cost you even less if you have a newer home, a hail-resistant roof or have bundled policies. A good credit score can also garner a discount at IMT.

You could enhance your policy by purchasing service line protection and water backup coverage. If your home is worth more than $175,000, you may also be eligible to gain additional coverage with IMT's Gem package. Gem homeowners receive disappearing deductible, replacement cost coverage and pet injury protection. You also receive increased coverage limits if you're able to upgrade.

Notably, IMT doesn't offer an identity theft upgrade, and extended replacement cost coverage isn't available for homes worth less than $175,000.

Best for bundling: West Bend Mutual

The broad coverage offered by West Bend Mutual may entice homeowners who also own a car

The average cost of homeowners insurance from West Bend Mutual is $1,061, about one-fourth cheaper than the typical price in Iowa. West Bend's stand-alone homeowners insurance might be a fit for you if you want to work with a regional provider, but the company's Home and Highway bundle offers even greater value if you're in need of auto insurance as well.

The broad coverage that comes with West Bend's bundled option makes it a good choice for customers with cars, even if its price doesn't necessarily reflect the cost of the company's stand-alone option. Home and Highway comes with guaranteed replacement cost coverage, in addition to $5,000 of increased jewelry protection and expenses for rebuilding lost property with environmentally friendly materials.

You can upgrade your policy by adding water and sewer backup protection, along with identity protection and coverage for extra expenses if your home's mortgage increases after a loss.

You can also reduce the cost of your homeowners insurance by:

  • Remaining accident free as a driver
  • Owning a new or recently renovated home
  • Insuring multiple cars
  • Having student drivers with good grades
  • Driving a car with anti-lock brakes

Best for military families: USAA

USAA's highlyrated customer service and coverage could come at a value for eligible Iowans

Read our full review of USAA

If you're an eligible active or retired service member or a military family member, you might consider purchasing homeowners insurance from USAA. In Iowa, you can buy coverage from USAA for about $1,234 per year. This is around 13% cheaper than the typical cost of insurance in the state.

Due to the insurer's comprehensive level of coverage, its affordability means eligible buyers can get protection for a great value. Notably, a standard homeowners insurance policy from USAA includes replacement cost coverage. This may be particularly useful given that Iowa experiences more tornadoes on average than most other states. If your home were completely destroyed, you wouldn't have to worry about how its depreciation will affect your claim payout.

USAA also had the best customer service of all the insurers we surveyed. According to the National Association of Insurance Commissioners' (NAIC) complaint index, which tracks the amount of complaints companies receive relative to their market shares, USAA gets much fewer complaints than the expected number for a company its size.

Homeowners insurance companies with the best and worst customer service

To determine which homeowners insurance companies in Iowa have the best customer service, we checked each provider's customer satisfaction by consulting the NAIC's complaint index. The index catalogs the number of complaints an insurer is responsible for given its share of the national marketplace. A company with a rating of 1.0 has the expected number of complaints for its size.

We found that customers are most happy with the service they got from USAA, State Farm and Auto-Owners Insurance. However, of these companies, only USAA's homeowners insurance policies were typically cheaper than Iowa's statewide average.

Only Pekin Insurance Company's complaint index of 0.97 came close to approaching 1.0, but American Family Insurance and Liberty Mutual had scores that were comparatively higher than the rest of the companies in this survey.

West Bend Mutual received the second best complaint index in the survey; however, its small size makes it difficult to compare with the more national brands we surveyed. Safe to say, its customers are generally pleased with their service.

NameNAIC Value (lower is better)J.D. Power(higher is better)A.M. Best (financial strength)
State Farm0.24/5A++
Nationwide0.402/5A+
American Family Insurance0.693/5A
Iowa Farm Bureau0.32N/AA
Auto-Owners Insurance0.214/5A++
IMT Insurance0.44NAA
West Bend0.05N/AA
Allstate0.313/5A+
Farmers0.463/5A
USAA0.155/5A++
Liberty Mutual0.532/5A
Pekin Insurance Co0.97N/AA-
Travelers0.32/5A++

Cheapest options for homeowners insurance in Iowa

We discovered that the cheapest homeowners insurance company for most people in the Hawkeye State is IMT Insurance, with a typical annual price of $683, while the most expensive is Auto-Owners Insurance, with an average price over $3,000.

The average cost of homeowners insurance in Iowa is about $1,421 per year. This is several hundred dollars more expensive than the average cost of coverage in the United States. Additionally, we found that none of the ZIP codes we collected data from had an average price of less than $1,083, the country's mean premium. But as some of the insurers in our study did have cheaper rates, it's important to compare the price of providers in your area before committing to coverage that might be more expensive than what you need.

Cost

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Most common homeowners insurance perils in Iowa

Tornadoes pose the largest threat to homeowners in Iowa, along with residents living in other states in the middle of the country. Iowans throughout the state can also be impacted by hailstorms. Property owners without sufficient protection could find themselves facing unexpected financial burdens after either loss.

To make sure your property and savings are protected from any peril, you should understand the limits of your homeowners insurance policy and the exceptions that apply to specific situations.

Does homeowners insurance cover tornado damage in Iowa?

Iowa experiences more tornadoes on average than other parts of the U.S. Located in the country's Great Plains region, Iowa experiences frequent strong thunderstorms during spring that often produce tornadoes and hail. Since 2017, the state has experienced an average of around 56 tornadoes per year.

Most homeowners insurance policies provide protection from wind damage, even if it's caused by tornadoes. However, you should make sure that your coverage would allow you to rebuild after a loss. Take inventory of your property to be certain your coverage limits match your home's worth. You may also consider upgrading to replacement cost coverage if it's not included in your policy to receive compensation for the full value of your property rather than its depreciated worth.

Hail insurance in Iowa

Iowa has experienced over 500 occurrences of hail since July 2017, but fortunately, most homeowners insurance policies include hail as a covered peril. However, you could see increased rates if you live in an area of the state that's especially prone to damage. Your insurer could also restrict your ability to make a claim if the damage is only cosmetic.

Many homeowners insurance companies offer discounts if you reinforce parts of your home that could be damaged by hail, including your roof and windows. You may also be eligible for reduced rates if your home has certain types of siding. In any case, it's best to speak with your insurance representative if you're unsure about any part of your coverage.

Iowa insurance rates: city-by-city breakdowns

Our data enabled us to provide the cost of homeowners insurance in each of Iowa's cities with populations of more than 20,000 people. The following table illustrates the cost of coverage for residents of the state's largest cities.

CityAverage% from average
Des Moines$1,373-3.35%
Cedar Rapids$1,239-12.78%
Davenport$1,223-13.89%
Sioux City$1,5307.70%
Iowa City$1,285-9.56%
Waterloo$1,345-5.29%
Ames$1,330-6.35%
West Des Moines$1,339-5.75%
Ankeny$1,279-9.94%
Council Bluffs$1,73622.20%
Dubuque$1,236-12.99%
Urbandale$1,335-6.03%
Cedar Falls$1,333-6.13%
Marion$1,233-13.20%
Bettendorf$1,207-15.04%
Mason City$1,395-1.81%
Marshalltown$1,362-4.13%
Clinton$1,244-12.44%
Burlington$1,347-5.19%
Ottumwa$1,343-5.46%
Fort Dodge$1,4904.88%
Muscatine$1,265-10.97%
Waukee$1,330-6.34%
Johnston$1,292-9.07%
Coralville$1,263-11.09%

Iowa's statewide average for home insurance was driven up by unusually high premiums in just a few areas, including Council Bluffs and Sioux City. We also took a look at the differences in property insurance rates from state to state.

Methodology

In this survey, we included estimates from 13 of Iowa's largest homeowners insurance providers. We sourced quotes from every ZIP code in the state. To gather these quotes, we utilized a sample property that was built in 1968, the median year of construction for Iowa's housing units. This property was insured for $149,100 to align with the median price of owner-occupied houses in the state.

We comprised our survey based on data from these insurers:

  • State Farm
  • Nationwide
  • American Family Insurance
  • Iowa Farm Bureau Mutual
  • Auto-Owners Insurance Co.
  • IMT Insurance Co.
  • West Bend Mutual
  • Allstate
  • Farmers
  • USAA
  • Liberty Mutual
  • Pekin Insurance
  • Travelers

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

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