The Best and Cheapest Renters Insurance in Iowa for 2021: Rankings, Reviews and Rates
Renters insurance can help you safeguard your personal property against unexpected damage and theft at a low monthly price. MoneyGeek’s data shows that cheap renters insurance in Iowa costs as little as $6 per month. The most expensive option costs $13 monthly. This means renters can save about $7 per month by shopping around before purchasing a policy.
If you want to strike a balance between quality and cost, MoneyGeek can help. We ranked the top renters insurance providers in Iowa to help you find the best coverage at the right price. Our scoring system takes into account price, customer service standards and financial strength so that you can make an informed choice before purchasing coverage.
Cost is one of the most important factor when choosing renters insurance policy. On average, the two most affordable companies in Iowa are State Farm and Allstate. For a typical renter, a State Farm policy costs about $6 a month or $70 per year. For the same coverage, an Allstate policy costs an average of $84 per year or $7 monthly.
These figures are based on quotes from a wide range of ZIP codes in Iowa for a policy that includes personal property coverage worth $20,000, liability coverage of $100,000 and a deductible of $500.
Personal Property Coverage:
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Best Renters Insurance Companies in Iowa
Price is not the only factor to consider when shopping for renters insurance in Iowa. You also need to know that your insurance provider can support you with effective and timely service.
To find the best renters insurance companies in Iowa, MoneyGeek scored providers based on affordability, customer service scores from J.D. Power and Associates and financial strength ratings from AM Best. According to this data, State Farm ranks as the top renters insurance company in Iowa with a score of 95 out of 100. Allstate comes second with a score of 90 out of 100.
More About State Farm
State Farm policyholders can customize their coverage to include specific protection for rare events, such as identity theft.
The online quote system is easy to use and makes increasing coverage for valuable items, like jewelry, simple.
More About Allstate
Allstate ranks high on affordability, customer service and financial strength. It also offers customers several convenient online tools.
In addition to standard coverage, the company offers identity theft protection, flood insurance and discounts to homes with security systems.
Getting a quote online is easy. Allstate provides round the clock claims support via phone and also provides a Digital Locker that lets users create photo logs of their possessions.
More About Nationwide
Nationwide offers standard renters insurance that covers events like fires and theft. Customers can add special coverage for their valuables.
Discounts are available for customers who have protective devices, multiple policies or are claims-free.
The online quote tool provides a basic quote in minutes.
More About American Family
You can get a quote over the phone with American Family. Their renters policies include full replacement value for belongings with several customization options.
American Family’s helpful agents provide detailed information about features and coverage options.
This is a good option for customers who like to interact directly with agents.
More About Farmers
Farmers offers standard renters insurance plans with options for increased coverage.
Renters can supplement the standard coverage with replacement cost coverage for expensive belongings. They also offer identity theft protection.
The online quote tool does a great job of providing a basic quote quickly.
Largest Renters Insurance Companies in Iowa
According to market share, the top five largest insurance companies in Iowa are State Farm (25%), Nationwide (12%), American Family (9%), Iowa Farm Bureau (9%) and Auto Owners (5%). Combined, these companies make up almost 60% of all renters insurance policies in Iowa.
If you choose a large insurer, you can have the confidence that your insurance plan is backed by a financially secure company that will be able to pay out any legitimate claim.
Farm Bureau Mutual (IA Group)
Auto-Owners Insurance Co
West Bend Mutual
IMT Insurance Company
Average Cost of Renters Insurance in Iowa
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The average cost of renters insurance in Iowa is $103 per year. This is $57 cheaper than the national average annual cost. These rates are for a customer with a policy that includes personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
Customers in Iowa can get significant savings by comparing renters insurance quotes. For example, our sample renter could save about $80 per year by choosing the most affordable provider, State Farm, instead of the most expensive, Farmers. This translates to a savings of roughly $7 per month.
What Factors Impact Renters Insurance Cost in Iowa
Several criteria, including where you live and the coverage level you choose, can influence how much you pay for renters insurance. Here are factors to remember when shopping for renters insurance in Iowa.
Location: How much you pay for your renters insurance is based partly on your ZIP code since crime rates and weather patterns can influence your premium. If your apartment is in an area with a significantly higher risk of property crimes or weather events, you might have to pay more each month.
Coverage Amount: The more coverage a customer has on their policy, the higher their premiums. It is a good idea to do a home inventory before getting an insurance quote so you know how much it would cost to replace your items.
Deductible: Your deductible is the amount you have to pay when your insurance provider approves a claim to replace your items. Plans with higher deductibles cause you to pay more out of pocket, but they have lower monthly premiums. Plans with a lower deductible have higher premiums since the provider will pay more to replace your items.
Actual Cash Value (ACV) vs. Replacement Cost Value (RCV): Insurance companies can offer reimbursement after a qualifying event in one of two ways. These include actual cash value (ACV) or replacement cost value (RCV). ACV policies account for an item’s depreciation over time and will pay less for older belongings. RCV policies pay for a new item of the same kind and quality. AVC policies can help you save on monthly bills but will pay less when you file a claim. RCV policies pay more after a claim but have higher premiums.
Credit Score: Insurance providers can use your credit score to determine the likelihood of you making a claim. Companies have found that customers with lower credit scores are more likely to make claims. Therefore, customers with lower scores may be charged more for renters insurance, while those with higher scores could receive lower prices.
Renters Insurance in Iowa: What You Need to Know
Renters insurance is a cost-effective option to safeguard your assets. It can be particularly beneficial in case of damage from bad weather, fire and theft.
In Iowa, 26.4% of the population are renters and the average rent price is $808 per month. For a standard renters insurance policy with $20,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible, the average monthly premium is about $9. This is 1.06% of the price of rent.
What Renters Insurance Typically Covers in Iowa
Before purchasing renters insurance in Iowa, it is important to fully understand what is covered and what is not. While some insurance options will include extras like identity protection, the standard plan typically provides coverage for personal property, liability insurance, medical payments and additional living expenses.
In Iowa, personal property insurance can cover damages caused by natural disasters like wildfires and tornadoes.
What Renters Insurance Typically Does Not Cover in Iowa
While renters insurance is a great way to protect against many possible emergencies, certain situations may not be covered. These include:
Flooding: Insurance can protect you when there is water damage from broken pipes or a faulty water main. However, flooding caused by a natural disaster is usually excluded. Flooding is a concern in Iowa, so residents can consider adding flood insurance through the Nation Flood Insurance Program (NFIP).
Structural Damage: Renters insurance covers your personal property. However, it does not cover your rental’s frame and structure. These are your landlord’s responsibility.
Earthquake Damage: Earthquakes are rare in Iowa, but it is important to remember that damage caused by earthquakes is usually not covered by renters insurance.
Expensive Items: High-value items are frequently excluded from renters insurance policies. You might want to purchase an additional rider to protect your expensive belongings.
Roommate Property: Your renters insurance policy will only cover your belongings. Your roommate will need to purchase their own coverage.
Since every policy is different, it’s important to read the fine print to understand exactly what is covered and what is not. If you have questions, you can ask your agent so you fully understand your policy.
FAQs About Renters Insurance in Iowa
There is no legal requirement for renters to have renters insurance in Iowa. However, your landlord may require it as part of your lease.
Although it is not legally mandated in the state of Iowa, having a renters insurance policy can protect your property from theft and destruction. MoneyGeek recommends purchasing insurance, especially since it doesn’t cost much.
Yes, your landlord can require you to have renters insurance as a condition of your lease.
According to MoneyGeek’s data, the average cost of renters insurance in Iowa that includes $20,000 in personal property coverage and $100,000 of liability coverage is $9 per month.
State Farm provides the most affordable renters insurance in Iowa. Allstate offers the second lowest rates.
Renters Insurance in Iowa Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from 5 of the top insurance companies in Iowa that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Iowa. Quotes were gathered for policies with personal property coverage of $20,000, $50,000 and $100,000; liability coverage of $100,000 and a deductible of $500.
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