Iowa's average home insurance premium is $198 monthly or $2,381 annually. That's 31% cheaper than the national average, saving residents $91 per month. Iowa ranks as the 24th most affordable state for home insurance coverage.
Average Home Insurance Cost in Iowa
Updated: January 7, 2026
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Key Takeaways: Iowa Home Insurance Rates
Iowa home insurance costs average $198 a month or $2,381 a year, ranking as the 24th most affordable state for homeowners coverage nationwide.
Determine your coverage needs, gather multiple quotes and research providers and costs to find the best home insurance in Iowa at competitive rates.
MoneyGeek's free home insurance calculator helps you estimate your Iowa costs in seconds without providing any personal information.
How Much Is Home Insurance in Iowa?
| Iowa | $2,381 | $3,467 | -31% |
*These rates are for a frame construction home built in 2000 with $250,000 dwelling, $125,000 personal property, $200,000 liability coverage and a $1,000 deductible.
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$220
High
$144
Average
$104
Low
Rates updated:
Jan 30, 2026
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What Affects Average Iowa Home Insurance Costs?
Home insurance costs in Iowa vary based on multiple factors. Your location, coverage limits, home's construction materials, insurance company, credit score and claims history all impact your premium. Each of these elements plays a different role in determining what you'll pay for coverage.
Average Iowa Homeowners Insurance Pricing by Coverage Level
Iowa's standard $250,000 dwelling policy costs $2,381 annually, while entry-level coverage saves $976 yearly but may underinsure most homes. High-value $1 million policies cost 2.8 times more than standard coverage, which is best for luxury properties requiring extensive replacement protection.
| $100K Dwelling / $50K Personal Property / $100K Liability | $117 | $1,405 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $198 | $2,381 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $320 | $3,836 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $433 | $5,192 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $553 | $6,634 |
Average Cost of Iowa Home Insurance by Company
Auto-Owners charges half what Farm Bureau does for the same Iowa coverage. State Farm's $2,215 annual rate undercuts American Family's $2,767 by $552, even when comparing mid-range options.
| Auto-Owners Insurance | $143 | $1,711 |
| Nationwide | $153 | $1,837 |
| Farmers | $154 | $1,850 |
| USAA | $165 | $1,983 |
| State Farm | $185 | $2,215 |
| American Family | $231 | $2,767 |
| Allstate | $251 | $3,012 |
| Farm Bureau | $306 | $3,673 |
Average Iowa Home Insurance Cost by City
Home insurance costs vary across Iowa cities based on local factors like property values, housing age and weather risks. Cities with older homes or higher storm exposure usually see higher premiums than areas with newer construction and lower risk profiles.
| Cedar Rapids | $197 | $2,360 |
| Davenport | $188 | $2,256 |
| Des Moines | $206 | $2,473 |
| Dubuque | $191 | $2,297 |
| Hawkeye | $206 | $2,476 |
| Wadena | $206 | $2,477 |
Average Iowa Home Insurance Cost by Credit Score
Your credit score affects home insurance costs in Iowa. Homeowners with better credit pay less because insurers see them as lower risk. Annual premiums range from $1,531 to $5,521 based on your credit profile.
| Excellent | $128 | $1,531 |
| Good | $198 | $2,381 |
| Below Fair | $264 | $3,168 |
| Poor | $460 | $5,521 |
Iowa Homeowners Insurance Costs by House Age
Home age affects insurance costs in Iowa. Newer homes built in 2020 average $1,594 annually, while homes from 1980 cost around $2,381 per year. Older homes cost nearly 1.5 times more to insure than newer construction.
| Newer | $133 | $1,594 |
| Older | $194 | $2,333 |
| Middle Age | $198 | $2,381 |
Why Is Home Insurance So Affordable in Iowa?
Iowa's average home insurance premium of $2,381 ranks 31% below the national average of $3,467, making it the 24th most affordable state. This relative affordability stems from several state-specific factors that reduce insurer risk and claim costs.
Moderate Property Values
Iowa's median home value is $195,900, according to U.S. Census Bureau data. Lower property values mean insurers pay less when homes require repair or replacement, translating directly to reduced premiums for homeowners.
Competitive Insurance Market
Iowa hosts numerous home insurance carriers competing for customers, creating downward price pressure. The state's Iowa Insurance Division regulates but doesn't restrict carrier entry, allowing competition to drive rates lower. This competitive environment gives Iowa homeowners substantial choice, with rate variations of over $1,900 annually between the most and least expensive carriers for identical coverage.
Lower Construction Costs
Building materials and labor in Iowa cost less than coastal metropolitan areas. Since insurers calculate premiums partly on replacement cost, Iowa's lower construction expenses directly reduce premiums.
Tips to Save on Iowa Home Insurance
Iowa home insurance costs keep rising, so finding the cheapest coverage matters more now. These practical strategies help you slash premiums whether you're buying coverage or reducing current costs.
- 1Calculate Coverage Needs
Your home's replacement cost differs from its market value, sometimes by 20% or more. Base coverage on what it costs to rebuild using current construction prices, not what buyers will pay. Create an inventory of belongings to establish personal property coverage requirements. Iowa homeowners should consider additional coverage like water backup protection, especially in flood-prone areas like Cedar Rapids.
- 2Research Costs and Discounts
Use MoneyGeek's Iowa home insurance calculator to estimate fair pricing for your Des Moines or Davenport property. When gathering quotes, ask about available discounts including security systems, newer homes, claim-free records and protective devices like smoke detectors. These discounts reduce your premium costs without changing your coverage.
- 3Compare Multiple Providers
Iowa rates vary by nearly $2,000 annually between carriers for identical coverage. Shop at least three companies to find competitive pricing. Check each insurer's financial stability through AM Best and review complaint data from Iowa Insurance Division. Cheap rates mean nothing if your insurer delays payment or disputes legitimate claims during stressful situations.
- 4Bundle Your Policies
Bundling home and auto insurance with one provider can lower premiums by about 10% to 25% in Iowa. Many homeowners choose this option to keep billing simpler and limit the number of insurers they work with.
It can also make policy management easier for households in cities like Sioux City or Iowa City that prefer dealing with a single company for multiple coverage needs.
- 5Lower Your Risk Profile
Security upgrades earn discounts while protecting your property. Smoke detectors, monitored security systems and storm shutters all reduce premiums. Skip small claims when possible, as one claim adds $379 to annual costs, two add $698. Improve your credit score to good or excellent for immediate rate reductions up to 25%.
Calculate Iowa Homeowners Insurance Costs: FAQ
Homeowners insurance costs in Iowa depend on multiple factors unique to your property and situation. The FAQs below address common questions about home insurance pricing in the state to help you understand potential expenses.
How much will my premium increase after filing a claim in Iowa?
In Iowa, filing a homeowners insurance claim can lead to noticeable increases in yearly premiums. Homeowners with no claims pay an average of $2,381 per year. After one claim, that figure rises to $2,760, and with two claims, annual costs reach about $3,079. Because claims remain on your record for five years, these higher costs can carry over long after the claim is closed.
How much can I save by choosing a different insurer in Iowa?
Comparing quotes from multiple Iowa home insurers can save you thousands of dollars each year. Rate differences between companies are huge, so getting quotes from several providers protects your budget.
Auto-Owners offers Iowa's cheapest rates at $143 monthly, while Farm Bureau charges $306 per month for the same coverage. Mid-range providers show notable gaps too: USAA costs $165 monthly compared to State Farm's $185, a $20 difference. Get quotes from at least three insurers to find your best rate.
What's the difference between replacement cost and market value for Iowa homes?
Replacement cost reflects what it costs to rebuild your home using current construction prices and materials. Market value represents what buyers will pay based on location, schools and neighborhood appeal. Iowa homes often have replacement costs 10-20% higher than market value since rebuilding includes labor, materials and permits regardless of your neighborhood's desirability. Always insure based on replacement cost to avoid underinsurance.
Why does home insurance cost more for older homes in Iowa?
Older homes in Iowa cost 46% more to insure than newer properties. A home built in 1980 averages $2,333 annually, while newer homes from 2020 cost around $1,594 per year. The difference amounts to $739 more each year for older homes. Middle-aged homes built in 2000 average $2,381 annually.
Insurance companies charge higher premiums for older homes because aging systems create more risk. Electrical wiring, plumbing and roofing deteriorate over time, making these components more likely to fail and trigger insurance claims. Older homes also cost more to repair since replacement parts and materials matching original construction can be harder to find and more expensive.
How can I lower my home insurance costs in Iowa?
You can cut your Iowa home insurance costs through several proven strategies. Compare quotes from multiple insurers since companies charge wildly different rates for the same coverage in Iowa.
Keeping a clean claims history saves you $379 per year compared to filing one claim or $698 annually versus filing two claims over five years.
Increasing your deductible from $500 to $1,000 drops your annual premium by $173.
You'll cover more costs when filing a claim, but the yearly savings build up fast. Call several insurers to find discounts for bundling policies, installing security systems or owning a newer home. These discounts can slash your annual costs while keeping your coverage strong.
How We Analyzed Iowa Home Insurance Rates
MoneyGeek calculated Iowa home insurance rates using real premium data and a consistent baseline to show how specific factors affect your costs.
We built our analysis around a standard homeowner profile: $250,000 dwelling coverage, $125,000 personal property coverage, $200,000 liability coverage and a $1,000 deductible. The model home was built in 2000 with frame construction and a composition roof, with no claims filed in the past five years.
This profile matches typical Iowa homeowners and reflects common home values across the state. The 2000 construction year represents the large number of middle-aged homes in Iowa's housing market.
Our approach isolated how each factor affects premiums by changing only one element at a time. For example, when studying how home age impacts rates, we compared identical policies for homes built in 1980, 2000 and 2020. This method shows the real effect of each variable on your premium.
Your actual premium will be different depending on your home's construction, roof condition, age, location, coverage amounts, claims history, credit score and insurance company. The rate differences shown here demonstrate how much each factor can change what you pay.
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.
sources
- United States Census Bureau. "Iowa Quick Facts." Accessed January 30, 2026.