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Last updated on Sep 24, 2020

The Best Homeowners Insurance Companies in Iowa

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    Finding the best homeowners insurance in Iowa is a top concern for many residents. Not only do you need a plan that’s affordable and offers the coverage you need, but you also need a provider with respectable financial strength and a strong history of customer service. Our review takes the guesswork out of finding the best homeowners insurance in Iowa by compiling a list of the top providers in the area.

    We evaluated each insurance provider for their pricing, customer service, coverage options, available discounts, and financial strength to find the best options for Iowa residents. While USAA is our top pick for Iowa residents, there are a number of top-quality insurance providers in the area that are bound to have the solutions you need. Read on to find the best homeowners insurance provider for your specific needs.

    The 5 Best Homeowners Insurance Companies in Iowa 

    • USAA
    • Allstate
    • American Family
    • Farmers
    • Nationwide
    CompanyAverage PriceAM Best Financial StrengthJ.D. Power Overall Customer Satisfaction
    USAA$1,170A++889/1,000
    Allstate$929A829/1,000
    American Family$1,322A821/1,000
    Farmers$1,138A814/1,000
    Nationwide$661A+808/1,000

    Best Iowa Homeowners Insurance Companies

    USAA

    USAA makes the top of our list for best homeowners insurance providers in Iowa for its incredible customer service and financial strength. While service is only available to current and former military members, we can’t ignore USAA’s reputation for providing exceptional service and ability to process claims.

    USAA

    Best Overall

    Why we chose it

    While only available to a select population of Iowa, USAA features impeccable financial strength and a long history of great customer service.
    • 4 Reviews Score
    • A++ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 889* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A- BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    While only available to a select population of Iowa, USAA features impeccable financial strength and a long history of great customer service.

    Pros

    • High J.D. Power Score of any brand
    • Impeccable financial strength
    • Online quote tools

    Cons

    • Limited availability
    • High rates in Iowa

    Discounts available

    • Claims-free discount
    • Multi-policy discount
    • ADT home security system credit

    Unique features

    Unlike many other insurance providers, USAA provides a claims-free discount for customers who haven’t submitted a claim through their insurance providers to help them save money on their premiums.

    *J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Allstate

    Allstate is another top contender for the best homeowners insurance providers in Iowa for its above-average customer satisfaction, affordability, and breadth of coverage. Not only does it provide customizable coverage options, but the company also features some of the most comprehensive discounts in the state.

    Allstate

    Best Coverage Options

    Why we chose it

    We chose Allstate for its affordable premiums, wide range of coverage options, and reputation for great customer satisfaction.
    • 4 Reviews Score
    • A AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 829* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    We chose Allstate for its affordable premiums, wide range of coverage options, and reputation for great customer satisfaction.

    Pros

    • Great financial strength
    • Affordable rates in Iowa
    • Many coverage options and discounts

    Cons

    • Limited customer service online

    Discounts available

    • Easy Pay Plan® discount
    • Multi-policy discount
    • Claim-free discount
    • 55+ retired discount
    • Protective device discount
    • Early signing discount

    Unique features

    Allstate is one of the most affordable options in Iowa and features “Claim Rateguard,” which prevents against an increase in policy rates after filing a claim.

    *J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    American Family

    American Family (also referred to as AmFam) is another trusted homeowners insurance provider in Iowa, known for its round-the-clock customer service and helpful mobile tools. The company also features a wide range of coverage options specifically for natural disasters, making it a great option for Iowa’s many farmers and ranchers.

    American Family

    Best 24/7 Service

    Why we chose it

    American Family deserves a place on our list of best homeowners insurance providers in Iowa for its incredible customer service and breadth of coverage for natural disasters.
    • 3.75 Reviews Score
    • A AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 821* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    American Family deserves a place on our list of best homeowners insurance providers in Iowa for its incredible customer service and breadth of coverage for natural disasters.

    Pros

    • 24/7 customer service
    • Helpful mobile tools
    • Natural disaster coverage

    Cons

    • High rates in Iowa

    Discounts available

    • Safe, Secure, Smart Home discount
    • Bundle & Save discount
    • Insurance payment discount
    • Loyalty discount
    • Age of home discount
    • Renovated home discount
    • Generational discount

    Unique features

    Along with its 24/7 helpline, AmFam features a generational discount for anyone whose parents and relatives have been customers over the years.

    *J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Farmers

    Farmers makes the list of top homeowners insurance providers in Iowa for its three tiers of coverage and the wide range of available discounts. While the company does raise its premiums to keep up with inflation, it also provides customers the option to participate in their “Declining Deductibles” feature that helps homeowners take $50 off their deductible for every continuous year of coverage.

    Farmers

    Best for Savings

    Why we chose it

    Despite the annual premium increase, Farmers offers a wide range of affordable options and discounts that meet virtually every budget need.
    • 3.5 Reviews Score
    • A AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 814* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Despite the annual premium increase, Farmers offers a wide range of affordable options and discounts that meet virtually every budget need.

    Pros

    • Declining deductible option
    • Three-tier plans
    • Discounts available for new homes

    Cons

    • Annual premiums can increase

    Discounts available

    • Multiple policy discount
    • Non-smoker discount
    • Home renovation discount
    • New home discount
    • UL-approved roofing discount
    • Home safety discount
    • Rent-to-own discount

    Unique features

    Unlike other insurance providers, Farmers offers a three-tier structure for its coverage options, helping Iowans meet their budget and coverage needs.

    *J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Nationwide

    Nationwide rounds out our list of best homeowners insurance providers in Iowa for its wide range of coverage and unique discounts. While the company has below-average customer satisfaction, Nationwide’s policies and affordability make up for what it lacks in customer service.

    Nationwide

    Best for Unique Discounts

    Why we chose it

    We chose Nationwide as one of the best homeowners insurance providers in Iowa for its affordability, breadth of coverage, and unique discount offerings.
    • 3.75 Reviews Score
    • A AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 808* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    We chose Nationwide as one of the best homeowners insurance providers in Iowa for its affordability, breadth of coverage, and unique discount offerings.

    Pros

    • Wide range of coverage options
    • Affordable coverage in Iowa
    • Unique discounts

    Cons

    • Below-average customer satisfaction

    Discounts available

    • Multi-policy discount
    • Protective device discount
    • Claims-free discount
    • Home renovation credit
    • Roof rating discount
    • Home purchase discount
    • Prior insurance discount
    • Gated community discount

    Unique features

    One of the most unique aspects of Nationwide insurance is its prior insurance discount, which rewards new members for having continuous coverage by their previous insurance carrier.

    *J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Average Cost of Homeowners Insurance in Iowa

    In Iowa, residents can expect to pay an average of $964 for homeowners insurance. To put this in perspective, the national average cost of homeowners insurance in the United States is $1,211 as of 2017 surveys conducted by the Insurance Information Institute. This makes Iowa the 36th most affordable state to live in for homeowners insurance.

    Home Insurance Add-Ons That Will Further Protect You

    In addition to the standard coverage options offered through homeowners insurance providers, homeowners should seek out additional options that will further protect them. For example, American Family’s natural disaster coverages help protect Iowa residents from damages incurred from major weather events. With Iowa having experienced more than 50 tornadoes in 2019 alone, it’s a good idea for homeowners to seek out options that will provide them with additional protection for natural disasters.  

    More than natural disaster coverage, homeowners should also seek out personal liability options to bolster coverage. Especially for farmers, ranchers, pet owners, and parents, personal liability coverage is a must-have in order to protect against lawsuits that may arise as a result of someone being harmed on your property. Consult with your insurance provider to understand the options that best fit your risks and coverage needs.

    The Cheapest Homeowners Insurance Companies in Iowa

    Largest Companies by Market Share in IowaAverage Annual Premium
    West Bend Mutual Insurance Company$554
    Penkin Insurance Company$631
    Nationwide$661
    Allied Insurance$800
    IMT Insurance Company$848
    Auto-Owners Insurance$871
    Employers Mutual Casualty Company$883
    Allstate$929
    Hastings Mutual Insurance Company$993
    Farmers Insurance$1,138
    Celina Mutual Insurance Company$1,144
    USAA$1,170
    Safeco$1,199
    Garrison Property & Casualty Insurance Company$1,220
    American Family Insurance$1,322
    Farm Bureau Property & Casualty Insurance Company$1,422
    Iowa Mutual Insurance Company$1,455
    State Farm$1,623
    Average Across Credit Rating Tiers$1,047.94

    Cost of Homeowners Insurance by Age of Home

    Homeowners Insurance by Age of HomeAverage Annual Premium
    5$1,060
    20$1,520
    35$1,557
    50$1,549
    Average Across Credit Rating Tiers$1,422

    Top 3 Cheapest Homeowners Insurance Companies in Iowa

    • West Bend Mutual Insurance Company
    • Pekin Insurance Company
    • Nationwide

    Top 3 Most Expensive Homeowners Insurance Companies in Iowa

    • State Farm
    • Iowa Mutual Insurance Company
    • Farm Bureau Property & Casualty Insurance Company

    Helpful Resources for Iowa Homeowners

    For those living in Iowa, the state offers many additional resources that may be helpful in terms of understanding insurance requirements, disaster preparedness, and mortgage assistance. The Iowa Housing Search tool is a free rental housing locator, but also provides resources for homeowners, including emergency preparedness and recovery, financing guides, and on-site waste water assistance.

    Homeowners Insurance FAQ

    Is homeowners insurance required in Iowa?

    While homeowners insurance is not legally required in Iowa, your mortgage lender may require it in order to process your financing agreement. Refer to your lender’s guidelines to understand what insurance coverage is required in order to receive the financial assistance you need to purchase your home.

    What is the cheapest homeowners insurance in Iowa?

    The least expensive insurance provider in Iowa is West Bend Mutual Insurance Company.

    What additional coverages do I need as an Iowa resident?

    Since Iowa experiences many instances of tornadoes and other forms of natural disasters, it’s a good idea to ensure your homeowners insurance policy includes coverage for such emergency situations. Additionally, securing personal liability insurance for your homeowners policy is a great way to protect against lawsuits that may arise from a third party getting injured on your property.

    Methodology

    We evaluated the companies based on their customer rating and experience, financial stability, and coverage to determine the best providers. To compare home insurance companies across the board, we then calculated a Reviews.com score based on the following:

    • Customer Ratings — Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
    • Coverage — As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available. 
    • Confidence — It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
    • Customer Experience — The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.

    About the Authors

    Carly Severino is a freelance copywriter and editor with more than 15 years of writing experience, and is the current founder of Word Nerd Writing & Editing Services. She writes about insurance and personal finance in publications such as Reviews.com, Bankrate, The Simple Dollar and Coverage.com.

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