Updated: February 1, 2026
Advertising & Editorial Disclosure
Auto-Owners offers Iowa's lowest home insurance rates at $1,711 annually, 28% below the state average of $2,376.
Location impacts costs. Auto-Owners charges $1,888 in Dubuque but only $1,595 in Davenport.
Shopping around and asking about discounts while bundling policies helps Iowa homeowners secure their best possible rates.
Choosing the right provider saves Iowa homeowners over 28% on home insurance. Iowa's average annual cost is $2,381.Â
Auto-Owners is the cheapest home insurance company in Iowa at $1,711 per year. Nationwide follows at $1,837 annually, while Farmers costs $1,850.
| Auto-Owners Insurance | 5.00 | $1,711 | -28% |
| Nationwide | 4.93 | $1,837 | -23% |
| Farmers | 4.92 | $1,850 | -22% |
| USAA | 4.84 | $1,983 | -17% |
| State Farm | 4.71 | $2,215 | -7% |
*These rates are based on a house built in 2000 with $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage and a $1,000 deductible. We assumed good credit and no claims in the past five years.
Your claims experience depends on more than just premium costs; customer service and coverage options matter when you need help. Our separate guide to the best home insurance companies in Iowa compares insurers across multiple factors beyond cost.
Your home's value affects your insurance costs more than any other factor. A $100,000 home in Iowa costs far less to insure than a $1 million property. Auto-Owners offers the lowest rates across all coverage levels in our analysis. Use the table below to find the cheapest insurers for your dwelling coverage amount.
| Nationwide | $82 | $982 |
| Auto-Owners Insurance | $87 | $1,046 |
| Farmers | $92 | $1,108 |
| USAA | $93 | $1,118 |
| State Farm | $99 | $1,188 |
Crime rates, weather risks and construction costs create rate differences across Iowa's cities. Auto-Owners charges Des Moines residents $1,739 annually but only $1,616 in Cedar Rapids for identical coverage. Auto-Owners offers the lowest rates in all six cities we analyzed. The table below shows the cheapest insurers for your dwelling coverage amount.
| Auto-Owners Insurance | $135 | $1,616 |
| Farmers | $149 | $1,792 |
| Nationwide | $158 | $1,899 |
| State Farm | $185 | $2,215 |
| USAA | $167 | $2,004 |
Your personal profile affects your home insurance rates as much as your property details. Credit score and claims history create the largest rate differences among Iowa homeowners.
Insurers use credit scores to predict claim likelihood, which affects your premium by hundreds of dollars annually. Auto-Owners offers the most affordable coverage in most credit tiers in Iowa.
| USAA | $178 | $2,141 |
| Nationwide | $197 | $2,358 |
| Farmers | $200 | $2,405 |
| State Farm | $231 | $2,770 |
| American Family | $261 | $3,134 |
Filing claims increases your premiums, but the rate increase varies by insurer. Auto-Owners maintains the lowest rates for Iowa homeowners regardless of claims history.
| Auto-Owners Insurance | $165 | $1,984 |
| Nationwide | $177 | $2,129 |
| Farmers | $179 | $2,144 |
| USAA | $192 | $2,299 |
| State Farm | $214 | $2,567 |
Reducing your home insurance costs in Iowa requires work, but you'll save money with smart strategies. Here are our recommendations to help lower your policy premiums.
Decide on your coverage limits before shopping to avoid buying more than you need. Understand dwelling coverage, personal property limits and liability protection to get adequate coverage without overpaying.
Compare quotes from at least three insurers for identical coverage levels. Iowa home insurance rates vary by hundreds of dollars annually between companies, even for the same home and profile. Gather quotes online, through agents and directly from insurers to find your best rate.
Save 15% to 25% by bundling your home insurance with auto coverage. Most Iowa insurers offer multi-policy discounts that reduce both premiums.
Ask agents about every discount you qualify for, as insurers won't apply them automatically. Common Iowa discounts include protective device discounts for monitored alarm systems, claims-free discounts, new home discounts and savings for wind and hail-resistant roofing materials.
Iowa allows credit-based insurance scoring, so improving your credit can lower your rates. Pay bills on time and reduce credit card balances to see premium reductions at your next renewal.
Compare quotes from at least three insurers to find Iowa's best home insurance rates, starting with Auto-Owners at $1,711 annually. Your actual cost will depend on your home's value, location and personal profile. Begin with companies on our recommended list and ask every insurer about available discounts to maximize your savings.
Get answers to common questions about affordable home insurance in Iowa.
Older homes cost more to insure due to outdated electrical, plumbing and roofing systems. Lower your premium by updating these systems and providing documentation to your insurer. Replacing knob-and-tube wiring, updating your roof and installing a modern HVAC system can reduce your rates. Some insurers offer renovation discounts when you complete major updates.
Roof age affects your premium and coverage eligibility. Most Iowa insurers charge higher rates for roofs over 15 years old, and some won't cover roofs over 20 years without inspection. A new roof can lower your premium and qualify you for discounts. Insurers provide actual cash value coverage instead of replacement cost for older roofs, paying less when you file claims.
Some dog breeds increase your liability premium or disqualify you from coverage entirely. Insurers consider pit bulls, Rottweilers, German shepherds and Dobermans high-risk breeds. You'll pay more for liability coverage with these breeds, and some insurers won't cover you at all. Disclose your dog when applying, as hiding this information can lead to claim denials.
Iowa doesn't require flood insurance unless you have a federally backed mortgage in a high-risk flood zone. Standard home insurance doesn't cover flood damage, so you need separate flood insurance through the National Flood Insurance Program or private insurers.
MoneyGeek analyzed Iowa rates to identify which companies offer the lowest premiums for homeowners across the state.
We gathered quotes from major insurers through Quadrant Information Services for a standard Iowa home profile. The data shows which companies price competitively for typical homeowners.
Sample Home Profile
We gathered quotes using these specifications to represent a common Iowa homeowner:
This profile reflects a moderately valued home with a clean claims history. Newer homes (built after 1990) get better rates than older properties with outdated electrical and plumbing systems. The $1,000 deductible balances affordable premiums with reasonable out-of-pocket costs when filing claims.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
