Homeowners Insurance

• Do I have to have homeowners insurance?
• What does homeowners insurance cover?
• What happens if my insurance company cancels my policy?
• Finding new insurance
• More resources on homeowners insurance

Do I have to have homeowners insurance?

While the law doesn’t require that you have homeowners insurance, in reality most people must have homeowners insurance because someone else has a financial interest in the home and requires it. For example, if you have a mortgage on your home, your mortgage agreement will discuss homeowners insurance requirements.

Even if your home is paid off and no agreements require you to have homeowners insurance, not having insurance on your home is very risky. If your home is severely damaged or someone is seriously injured on your property, homeowners insurance may make a big difference in your ability to recover financially.

What does homeowners insurance cover?

Keep in mind that not all insurance policies cover the same things. Make sure to read your insurance policy carefully. If you have special property that may need more insurance protection, ask your insurance agent about options. Visit the Iowa Insurance Division’s Consumer Connection: Understanding Your Homeowners Policy for a helpful breakdown of homeowners coverage.

Typical homeowners insurance does not cover flooding. For more information on flood insurance, visit our Flood Insurance page. Please discuss a sewer and sump pump rider or endorsement for your homeowners policy with your licensed insurance agent. 

What happens if my insurance company cancels my policy?

Insurance companies can end their relationship with you by cancelling your policy or choosing not to renew the policy when the policy period ends.

Cancellation

To cancel your policy, your insurance company needs to provide you with notice:

• At least 10 days before the effective date of the cancellation if the policy is being canceled for non-payment.
• At least 30 days before the effective date of the cancellation date for other cancellation reasons.

Iowa Code section 515.125(1).

Reasons for cancellation

After your policy has been in effect for 60 days or more, your insurance company can only cancel for select reasons:

• Nonpayment of premium.
• Failure to pay dues or fees where payment of dues or fees is a prerequisite to obtaining or continuing the insurance coverage.
• Fraud or misrepresentation relating to a claim.
• Actions by the insured that substantially change or increase the risk insured.
• Violation or breach of a term or condition of the insurance policy or contract.
• A change in the risk that substantially increases a hazard insured against after insurance coverage has been issued or renewed.

Iowa Code section 515.129A.

Non-renewal

If an insurance company plans not to renew your policy, they must provide written notice to the first named insured at their last known address at least 30 days before the policy’s end date. Iowa Code section 515.129B(1). The Insurance company must include a written explanation of the insurer’s reasons for not renewing the insurance policy. Iowa Code section 515.129B(2). (Note, starting on January 1, 2025, the insurer must notify the insured 60 days in advance, rather than 30 days in advance.)

Finding new insurance

Visit the Iowa Insurance Division’s Consumer Connection: Shopping for Homeowners Insurance for more information on shopping for home insurance.

The Iowa FAIR Plan Association is a resource for Iowans who are struggling to find property insurance elsewhere. Visit the Iowa FAIR Plan website for more information.