Insurance in Iowa

Coverage Requirements in Iowa

Iowa requires 20/40/15 auto liability ($20,000 per person bodily injury, $40,000 per accident, $15,000 property damage). Iowa is at-fault with modified comparative fault at a 51% bar. Given roughly 11% uninsured drivers and the real-world cost of a single serious accident, UM/UIM stacked to 100/300 is strongly recommended. Standard homeowners insurance in Iowa covers wind, hail, and tornado damage, but the 2020 derecho exposed widespread underinsurance — Coverage A should be audited against current Iowa rebuild costs, and many carriers now apply separate wind/hail deductibles (typically 1–2% of dwelling value). Flood is excluded; NFIP or private flood is needed along the Mississippi, Missouri, Des Moines, and Cedar rivers. Iowa employers must carry workers' compensation from the first employee, with limited exemptions for certain agricultural, domestic, and casual labor. Commercial auto, equipment breakdown, and farm/ranch policies matter for grain, livestock, and ag-tech operations. Iowa City and Ames add dense college-town rental and liability exposure for landlords.