Are you protecting one of your biggest investment? Getting a comprehensive home insurance policy is a vital part of responsible home ownership. Obrella makes the home insurance policy shopping experience easier than ever before. Our connection with knowledgeable insurance experts can point you to offerings from top regional providers and answer any questions you might have in one simple call. Experienced in the complexities of Iowa home insurance policies, insurance experts can even bind your policy over the phone.
What is homeowners insurance like in Iowa?
On average, homeowners in Iowa pay $779 per year for home insurance. That’s $255 less than the national average of $1,034. Compared to other states, Iowa has the 10th lowest average insurance premiums.
- Median Home Value: 134,700
- Household Income: 57,810
- Percent of Income on Home Ownership: 20.90%
The median household income in Iowa is $52,229, which is on par with the national norm. The typical house in the state is valued at $124,300, or $52,400 less than the U.S. average of $176,700. So, Iowans’ income is about the same as most Americans’, but their homes are more affordable. That could be why at 20.93%, Iowa residents like you spend 11% less of their income on costs associated with home ownership than the average U.S. homeowner. That ranks the state as having the second lowest home ownership costs in the nation and is likely one reason a high percent of Iowa homes are owner occupied. To be specific, 70.8% of Iowa homes are occupied by their owners, whereas 3.5% nationally are.
Iowans already enjoy a relatively low cost of home ownership, but by saving money on your home insurance premium could reduce costs further. To get the best priced home insurance premium, call [mapi-phone-link /] and request home insurance quotes in Iowa from top experts.
How do the calculate premiums for home insurance in Iowa?
With any new policy, insurance companies assess how risky it will be to insure your home. This has a direct effect on how much you pay for your policy. The higher the risk, the more you’ll pay.
Home insurance providers assess risk by looking at the characteristics of the property as well as its surrounding area. Property-specific factors include home size, date of construction, and add-ons like swimming pools and guest homes. Regional factors like crime rates, home prices, and the likelihood of a severe weather event or natural disaster in your area can also impact your rates. For example, if you live near a flood-prone river, you can expect to pay a higher insurance premium than someone who lives on higher ground nearby. Likewise, living in an area with high rates of vandalism and home burglary may also raise your costs.
Fortunately, your homeowners insurance premium isn’t completely out of your control. Installing devices to protect your home like motion-sensitive lights, surveillance cameras, or a security system can lower the risk of your home being attacked, which would in turn lower your rates. Improving your credit score can also help in some cases.
What are Iowa’s homeowners insurance coverages?
Many home insurance companies in Iowa give you a range of coverage options to choose from; here are a few examples:
- HO-1: Limited Coverage
- While an HO-1 policy will cover your home in the event of the first 10 classified disasters—fire or lightning, windstorms or hail, explosions, riots, damage caused by aircrafts, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption—this type of policy is no longer available for purchase in most states.
- HO-2: Basic Policy
- HO-2 policies are designed to insure your home if it’s damaged by any of the 16 classified disasters.
- HO-3: Standard, most popular
- This policy is the most popular due to its comprehensive coverage and relatively few exceptions.
- HO-8: Older Home
- This policy guards against declining home values by reimbursing homeowners on an actual cash value basis. However, some more aged homes may not qualify for complete replacement cost policies.
What is the standard Iowa homeowners insurance coverage?
Typically, home insurance will only cover damage caused by specific situations outlined in your policy. So, for instance, you wouldn’t be eligible to receive a payment for damages if your house flooded but you didn’t have flood coverage in your policy. To make sure you’re in the know about the variety of policies and coverages available, check out the following home insurance coverage definitions:
- Coverage A – Dwelling
- Protects against damage to the home and attached structures. This includes damage to the home’s plumbing, wiring, and permanent air-conditioning and heating systems.
- Coverage B – Other Structures
- Structures not physically connected to the house are protected under Other Structures coverage. This includes free-standing sheds, fences, guest homes, and detached garages.
- Coverage C – Personal Property
- If the homeowner loses personal belongings due to theft or other damage, Personal Property coverage will compensate the homeowner for the value of the item—be it clothing, furniture, electronics, or jewelry. Personal Property coverage also extends to personal possessions that are damaged or lost outside the home, such as items in a storage unit.
- Coverage D – Loss of Use
- If home repairs prevent you from inhabiting your house, Loss of Use coverage can help. This coverage reimburses the homeowner for their living expenses for as long as they are unable to live in their home.
- Coverage E – Personal Liability
- Personal Liability covers the homeowner’s financial loss in the event of a lawsuit in which the homeowner is found legally liable for another’s injuries or damages.
- Coverage F – Medical Payments to Others
- Takes care of the medical costs of anyone injured by the homeowner’s pets or anyone injured on the homeowner’s property.
Iowa Insurance Resources
Iowa Insurance Division: Whether you have a question, concern, or complaint about your Iowa homeowners insurance, it’s a great resource to turn to. For starters, it offers you access to InsureU, a powerful insurance education program created by the National Association of Insurance Commissioners. The Division also has Consumer Advocates who can help you better understand the ins and outs of homeowners insurance. The Market Regulation Bureau handles insurance related questions and concerns.
Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”
Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!
Overwhelmed by your home insurance coverage choices? Don’t be just use Obrella! All you need to do is call an insurance agent to get help making your policy options crystal clear. Not only will you have an opportunity to get all of your home insurance questions answered, but insurance professionals make it their mission to understand your needs and help you discover the best policy options for you. They can even bind your policy by phone to save you time and stress.
To better understand your home insurance policy options in Iowa, call and speak to an insurance expert today at [mapi-phone-link /].