2022 Best Cheap Homeowners Insurance in Iowa – Motley Fool

Iowa homeowners insurance overview

Here are some things homeowners should know when shopping for Iowa home insurance and trying to find the best home insurance policy:

Iowa’s average home price falls well below the national average

The average Iowa home costs about $165,955, according to The Ascent’s research on average home price by state. That’s well under the national average of $293,349. This could work in favor of Iowa homeowners seeking insurance.

A smaller home isn’t a guarantee of a lower home insurance premium, but the two often go hand in hand. Smaller homes usually cost less money to rebuild, so homeowners can get by with a lower policy limit. But this also means Iowa homeowners with an above-average home price may see above-average insurance rates.

Homeowners in the Omaha metropolitan area can expect to pay more

The five Iowa cities with the most expensive annual home insurance premiums are all located in the Omaha metropolitan area. This isn’t that surprising considering home prices tend to be higher in cities than in rural areas.

Iowa homeowners who live around Omaha will have to set aside time to compare quotes from a few different insurers so they can find an affordable rate. Homeowners should get quotes from more than one insurance company to ensure they are receiving a competitive rate and find the best home insurance for them.

What are the most common homeowners insurance claims in Iowa?

Here’s a look at some of the most common homeowners insurance claims filed in Iowa:

Tornado damage

Iowa’s place in Tornado Alley means it sees plenty of strong storms every year. In 2021, it saw a record 61 tornadoes in a single day. While not all of these storms are severe, even a weak tornado can be capable of damaging personal property left outside or taking shingles off a roof. A strong tornado could easily destroy an entire building.

Because these insurance claims can be so costly, many companies now have a separate wind/hail deductible that homeowners must pay before the insurer will pay anything for these types of claims. This deductible is usually higher than the standard home insurance deductible.

Hail damage

Iowa ranks inside the top 10 for states most susceptible to large hail damage, according to the Insurance Information Institute. Hail can also damage roofs, windows, and personal property.

Homeowners can take steps to mitigate these damages by ensuring their roof is in good condition and choosing impact-rated skylights for their home. But it’s also important to purchase adequate home insurance coverage in case the worst happens.

Winter storm damage

Heavy winter storms are a fact of life in the Midwest, and Iowa’s no exception. Large snowfalls can put strain on roofs, especially older ones, and cold temperatures can freeze pipes, causing them to burst.

Again, homeowners can take steps to prevent these issues from arising, like wrapping pipes and shoveling roofs, but purchasing enough home insurance is still an important step.

Homeowners insurance coverage options and discounts in Iowa

Here’s a look at how several common home insurance discounts can affect Iowa’s average rates:

A new roof can save homeowners about $400 per year

It’s no surprise in a state plagued by hail and tornadoes that installing a new roof brings big home insurance discounts. A brand-new roof knocks the average Iowa home insurance premium down to $1,321 per year. Homeowners who have recently replaced theirs should reach out to their home insurer to let them know. They may also want to consider shopping around for a better rate elsewhere.

Upgrading your other home systems can be worth it too

Homes with new electrical, heating, or plumbing systems can also save on home insurance. The average annual Iowa home insurance premium for homes with these upgrades was between $1,560 and $1,570, depending on which system was upgraded. Not all insurers offer discounts for this, so homeowners who make these upgrades should look for a company that will reward them for it.

Bundling is still the best way to save

Homeowners who purchase home and auto insurance through the same company shave over $450 off their average annual home insurance premium. This is the largest single discount most insurers offer, which is why it’s almost always a good idea for a homeowner to purchase home and car insurance from a single provider.

5 cheapest cities for homeowners insurance in Iowa

These five cities have the cheapest average Iowa home insurance rates: