Iowa homeowners insurance
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Iowa homeowners insurance guide
Almost 72% of Iowa's population of more than 3.2 million people live in owner-occupied housing. With an average value of $160,700, the family home is one of the most valuable possessions most people in the state will own. Iowa homeowners insurance helps protect this investment against financial loss.
Iowa home ownership risks
Floods, tornadoes and winter weather pose some of the greatest risks to property owners in Iowa. About 17% of the properties in Iowa have a greater than 26% chance of experiencing a severe flood in the next 30 years. Much of the state has experienced above-average annual precipitation in recent years, which has increased the flood risk.
There were 42 tornadoes in Iowa in 2022, including one EF4 storm. Peak tornado season usually occurs in May and June.
The northern part of the state receives more than 40 inches of snow per year. Southern parts of Iowa receive about 20 inches. The weight of snow can damage roofs and melting snow can contribute to flooding in the spring.
Iowa homeowners insurance coverages
Unless you owe money on your home and your lender requires it, homeowners insurance is optional coverage. A typical homeowners policy combines multiple types of coverage that protect your home, personal property and family.
Dwelling
The dwelling portion of your policy pays to repair or replace your home if a covered cause of loss, such as a fire or tornado, damages or destroys it. Most homeowners' policies cover all causes of loss that the policy does not specifically exclude, however, less expensive policy options will only cover the property damage perils named in the policy.
Replacement Cost versus Actual Cash Value
You have the options of buying a homeowners policy that covers your dwelling at either Replacement Cost or Actual Cash Value. Replacement Cost represents the cost to repair or rebuild your home at the time of the loss. Actual Cash Value is the replacement value, less a depreciation deduction based on the age of your property. Some insurance companies may offer both types of coverage or they may only offer Replacement Cost coverage contingent on satisfying the terms of the policy.
Other Structures
The Other Structures portion of your policy pays to replace or repair structures, other than your dwelling, that are on your property. Examples of other structures include garages, sheds and patios.
Contents
Your Contents coverage pays to repair or replace your personal property, such as clothing, furniture and electronics. Some types of personal property, such as automobiles, are typically excluded. Others, such as guns or jewelry, may have limited coverage or require an endorsement of the policy.
Additional Living Expenses
Homeowners insurance usually includes coverage for temporary additional expenses that you may incur because of a covered cause of loss. For example, your policy may cover hotels and meal expenses, and pay the fees if you need to store your furniture in a storage facility while waiting for home repairs.
Liability
Liability coverage provides financial protection for damages you may have to pay someone else because of an injury or property damage you or a member of your family caused. However, homeowners policies typically exclude coverage for liability that arises from the operation of a business or motor vehicle.
Medical Payments
If a guest gets hurt on your property, Medical Payments coverage may cover some of the guest's medical bills. This coverage applies whether or not you are at fault for the injury.
Flood Insurance
Most homeowners insurance excludes coverage for flooding. However, you may be able to purchase this coverage as a separate policy through your insurance company or in a policy from the National Flood Insurance Program.
Earthquake Coverage
There are no major fault lines in Iowa, which makes earthquakes in the state uncommon. However, they do occasionally happen. There have been 13 earthquakes recorded in the state, with the largest occurring in Davenport in 1934. Because homeowners policies usually exclude this coverage, if you want earthquake protection, you will probably need to purchase it separately or add it as an endorsement to your policy.
Average cost of Iowa homeowners insurance
Iowa homeowners pay an average of $145 for homeowners insurance, which is below the national average of $210. Iowa is one of the 10 least expensive states to insure a home.
Even though rates are generally low in the state, costs still vary by company. Find the best rate on the coverage you need by comparing quotes from different companies with VIU by HUB.
Factors that affect Iowa homeowners insurance rates
Multiple factors can affect how much you pay for homeowners insurance in Iowa.
Coverage levels
The more coverage limits your policy provides, the higher your premiums will usually be. Homeowners with $250,000 in limits pay an average premium of $1,500 per year, while $500,000 in limits costs an average of $2,624 per year.
Deductibles
Your deductible is the amount of a loss you must pay before your insurance policy pays anything. The higher your deductible is, the lower your premiums will usually be. Most companies offer a range of deductibles to choose from.
Location
Areas with high crime rates and higher risks for natural disasters tend to be more expensive to insure. Sioux City is one of the most expensive areas for homeowners insurance in Iowa, while Des Moines is one of the least expensive.
Characteristics of your home
The risk factors and the average cost to repair or replace your home impact the rates you pay. Larger homes that consist of more expensive materials usually cost more to insure. However, damage-resistant materials, like brick, may save you some money on your premiums.
Older homes may come with higher rates because of worn-out roofs, outdated plumbing and out-of-code electrical systems that may increase the risks of a loss. Homes that are located in areas with poor-quality fire protection, or far away from a water source, may also carry higher rates.
This information is intended for general informational purposes only and is not intended to constitute legal advice.
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Home insurance in Iowa by city
Understand risks, minimum state coverage requirements, average costs and other specifics that can impact home insurance policies and premium rates in your city.