Iowa Home Insurance

Iowa’s real estate market is booming thanks to lower interest rates and stable home prices, especially in Iowa City, Des Moines, and Quad Cities. Now that the home and renter’s climate is desirable, it’s time to think about how you’re going to protect your property from weather storms, theft, and fire. This guide from The Simple Dollar provides insurance facts, statistics, and resources to to help you shop smarter when it comes to purchasing home and renter’s insurance.

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Stats in Your State

Iowa maybe be a midwestern state but that doesn’t mean it offers the same insurance premiums as its neighbors. To learn how Iowa compares to other states in the nation, check out some of the charts and graphs below that highlight major components to take into consideration when searching for insurance.

Homeowner Insurance Premiums

Premiums for homeowner’s insurance was $612 in 2008, according to the latest data. Although it continues to increase each year, it does so only in small increments.

Renter Insurance Premiums

Premiums for renter’s insurance was $132 in 2008, according to the most recent data. Premiums have not only stayed the same for three consecutive years but have also decreased from earlier years.

Existing Home Sales

Iowa sold 55,700 homes in 2008, according to the latest data. Although the number is slightly lower than homes sold in years past, as the economy begins to improve and interest rates begin to decrease, experts predict the number of homes sold will increase in the near future.

Flood Insurance in Region

Statistics show about 498 Iowans filed claims for flooding or water damage during Oct 1, 2011 through Sept 30, 2012, equating to about $11.5 million according to the most recent figures available. Flood coverage is not included in renter’s or homeowner’s insurance and must be obtained through a separate policy.

Homes Built

Iowa has built more than 57,700 new homes since 2005. The number of homes built isn’t as high as neighboring states, but lack of land in Iowa is a major contributing factor to this. That said, regardless whether you purchase a new or old home, it’s always recommended to get it fully inspected before closing a deal.

Rules in Your State

When it comes to filing a claim, home and renters insurance companies can really throw their customers a curve ball if they’ve failed to read the fine print. To ensure that filing a claim or purchasing insurance is a breeze, below are some of the most important components of property insurance you should get familiarized with:

The Homeowner Basics

Iowa's insurance department has established a list of homeowner tips, read them in detail here.
  • Homeowner’s and renter’s insurance does not cover water or flood damage. A separate flood insurance policy must be purchased.
  • Backup of sewers and drains is also typically not covered but can be added on for an extra charge with some providers.
  • Coverage does not apply to animals, automobiles, and business properties
  • A separate policy is needed to cover watercrafts, such as boats and jet skis, that are not located near your residence.
  • Insurance companies can refuse to file a claim if the insured can not show proof of inventory.
  • To exempt penalties, cancellations must occur during the renewal period.
  • An insurance company can cancel a customer’s policy at any time, however, if the following occurs: insured does not pay premium within 30 days, commits fraud, or negligence of insured increases chances of damage--for example not getting a gas leak fixed or leaving the home for more than 60 consecutive days.

Iowa FAIR Plan

The Iowa Fair Plan offers affordable and basic property insurance to residents who are not qualified to receive insurance from private companies. The non-profit organization doesn't compete with other property insurance companies but serves as a last resort for residents who can not find property insurance elsewhere due to rejection. To be eligible for this program, residents must prove the following: Rejection, cancellation, or nonrenewal of property insurance within the past six months.

  • Property must be located in Iowa.
  • Property must be in good condition/well maintained.
  • An application must be filled out for each property.
  • Properties must be used for residential purposes only.
  • Properties cannot have more than two boarders or roomers per family.

Representatives & Resources in Your State

If you ever have questions or need to know how to handle your particular case, it’s important that you know which agencies can assist you. Below is a list of useful representatives and resources that can give you answers and offer further advice on how to handle your situation.

Iowa Insurance Division
330 Maple St. Des Moines
IA 50319-0065
515-281-5705
Get Directions
File a Complaint

U.S. Department of Urban Development
451 7th Street S.W.
Washington, DC 20410
Get Directions
(202) 708-1112

Iowa Association of Realtors
Although this organization works as an advocate for professional realtors, there are sections designed to help consumers understand the housing market in Iowa as well.
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