Landlord Insurance in Iowa: Costs, Requirements & Best Providers
Iowa landlord insurance costs well above the national average. The homeowners benchmark is $3,765 a year, about 51% higher, and landlord policies usually run another 15-25% on top. Wind is the reason: tornadoes, hail and the 2020 derecho that flattened Cedar Rapids. Get a landlord insurance quote and compare the wind and hail deductible and the roof settlement terms, not only the premium.
By LandlordTested editorial teamPrices checked
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What landlords pay in Iowa
- Homeowners benchmark
- $3,765 a yearAbout $314 a month; 51% above the $2,490 national average.
- Estimated landlord policy
- $4,350-$4,700 a yearLandlord (DP-3) cover typically runs 15-25% above homeowners cover on the same building. Your quote will differ.
- Main hazards
- Tornado, Hail, Derecho/wind, Flood, Winter storm/freeze
- Not included
- Flood and earthquakeBoth need separate policies (NFIP or private flood; earthquake endorsement or policy).
Source: NerdWallet, 2026 homeowners (HO-3) median, $400,000 dwelling cover
Landlord insurance providers in Iowa
Both write landlord policies in all 50 states and quote online. Neither publishes prices, so the only way to know your premium is to get a quote for your address.
- 1
Steadily
Our pickSingle-family and 2-4 unit rentals, including vacant and short-term.
8.5/10 provisionalPrice
Quote-based
Pros, cons and who should skip itHide details
Good
- Covers all 50 states.
- Fast online quotes.
- Writes vacant and renovation properties too.
Watch out
- Mixed claim experiences, including wear-and-tear denials.
- Underwritten through a carrier some lenders have queried.
- Flood needs a separate policy.
Skip it if
Anyone who wants a local agent sitting across the desk.
- 2
Obie
Investors with several properties; portfolio policies available.
8.1/10 provisionalPrice
Quote-based
Pros, cons and who should skip itHide details
Good
- All 50 states plus DC.
- Portfolio (blanket) policies for several rentals.
- Covers short-term rentals and renovations.
Watch out
- Claims run through third-party administrators.
- Some reports of non-renewal after claims.
- Support is mostly email.
Skip it if
Landlords who want claims handled by the company they bought from.
Prices checked Oct 18, 2026. Scores are provisional until our account tests are done.
Want to see how Iowa compares? We keep a table of landlord insurance rates by state, with the method behind every figure.
On this page
Wind sets the price in Iowa
Iowa’s benchmark of $3,765 runs about 51% above the national average. A landlord (DP-3) policy on the same $400,000 house would start around $4,330 to $4,710. A typical rental in Des Moines, Davenport or Sioux City will rebuild for less than that and price lower, but wind and hail keep Iowa expensive relative to its home values.
On August 10, 2020, a derecho crossed the state with hurricane-force winds and caused billions in damage, with Cedar Rapids hit hardest. In May 2024 a tornado destroyed much of Greenfield. Hail falls every summer. Insurers responded by tightening terms rather than only raising rates.
The terms to check on every Iowa quote
Wind and hail deductible. Many Iowa policies now use a percentage of the dwelling limit.
| Dwelling limit | 1% | 2% |
|---|---|---|
| $180,000 | $1,800 | $3,600 |
| $250,000 | $2,500 | $5,000 |
Roof settlement. Older roofs are often paid at actual cash value, meaning depreciated value. A 17-year-old roof might pay out a fraction of the replacement cost after a hailstorm. Some policies use a roof payment schedule that reduces the payout each year.
Tree removal. Damage from a falling tree is covered, but the cost of hauling the tree away is usually capped at a small amount.
Floods along the rivers
Flood is excluded from landlord policies. Cedar Rapids flooded badly in 2008, the Missouri River in 2011 damaged western Iowa, and northwest Iowa flooded in June 2024. Lenders require flood insurance in FEMA special flood hazard areas, through the National Flood Insurance Program or a private flood insurer. Basement water from a sewer backup is a separate endorsement, not flood.
Winter claims
Frozen pipes and ice dams lead claims from December to March. Policies cover sudden bursts but expect the heat to stay on, and may limit coverage on a unit left vacant more than 60 days in a row.
What lenders want
Expect to need dwelling coverage at least equal to the loan or rebuild cost, wind and hail included, the lender named as mortgagee, and flood coverage in a mapped zone. Investment and DSCR lenders often want loss-of-rent coverage as well.
How to pay less in Iowa
- Re-roof with Class 4 impact-resistant shingles and ask each insurer for its discount.
- Choose the wind and hail deductible on purpose; a 2% deductible cuts premium but costs real cash after a storm.
- Trim trees back from roofs and power lines.
- Add a sewer backup endorsement and a sump pump with battery backup in basement units.
- Get quotes from Steadily and Obie on the same terms so the comparison is fair.
Iowa deposit and late-fee rules
Iowa caps the security deposit at two months’ rent (Iowa Code § 562A.12). You must return it with an itemized list within 30 days after the tenancy ends and you get a forwarding address, and bad-faith retention can cost actual damages plus punitive damages of up to two months’ rent. The deposit must sit in a federally insured account, and interest from the first five years belongs to you. Late fees are capped: up to $12 a day and $60 a month when rent is $700 or less, or $20 a day and $100 a month above that. With a capped deposit and capped late fees, a big hail deductible comes out of your reserve, not the tenant’s.
Questions landlords ask
The questions we get most, each answered in a paragraph.
How much is landlord insurance in Iowa?
NerdWallet's 2026 benchmark for an Iowa homeowners policy on a $400,000 house is $3,765 a year, about 51% above the $2,490 national average. Landlord policies typically cost 15-25% more. Most Iowa rentals are worth less than the benchmark home, so many quotes come in lower. Only a quote for the address is a real number.
Does landlord insurance cover derecho damage?
Yes, a derecho is a windstorm, and wind is a covered peril on landlord policies. What you pay depends on the wind and hail deductible, which in Iowa is often a percentage of the dwelling limit, and on whether the policy pays roofs at replacement cost or actual cash value. Fallen-tree removal is usually capped.
Can I keep the interest on an Iowa security deposit?
For the first five years, yes. Iowa lets the landlord keep interest earned on a deposit during the first five years of a tenancy. The deposit has to be held in a federally insured account, and you return it within 30 days after the tenancy ends and you receive a forwarding address.