Updated: May 8, 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.
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.
Your home's replacement cost differs from its market value, sometimes by 20% or more. Base coverage on what rebuilding costs at current construction prices, not what buyers would pay. Build an inventory of belongings to establish personal property coverage requirements. Iowa homeowners in flood-prone areas like Cedar Rapids should also consider water backup protection.
Use MoneyGeek's Iowa home insurance calculator to estimate fair pricing for your Des Moines or Davenport property. When gathering quotes, ask about discounts for security systems, newer homes, claim-free records and protective devices like smoke detectors. These discounts lower your premium without changing your coverage.
Bundling home and auto insurance with one provider cuts premiums by about 10% to 25% in Iowa. Beyond the savings, a single insurer simplifies billing and policy management, a practical choice for households in cities like Sioux City or Iowa City that prefer working with one company across multiple policies.
Security upgrades earn discounts and protect your property. Smoke detectors, monitored security systems and storm shutters all bring premiums down. Avoid small claims where possible: one claim adds $379 to annual costs and two add $698. Moving your credit score to good or excellent can cut rates by up to 25%.
Iowa allows credit-based insurance scoring. This means that improving your credit can lower your rates. Pay bills on time and reduce credit card balances. This helps decrease premiums in the long term.
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 (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has analyzed the insurance market for almost a decade, first with LendingTree and now with MoneyGeek, conducting original research on hundreds of insurance companies and millions of insurance rates for insurance shoppers.
He writes about economics and insurance on MoneyGeek, breaking down complex topics so people can have confidence in their purchase. Like all MoneyGeek analysts, Mark collects and analyzes independent cost and consumer experience data on insurance companies to provide objective recommendations in our content that are independent of any of MoneyGeek's insurance company partnerships.
His insights on products ranging from car, home and renters insurance to health and life insurance have been featured in The Washington Post, The New York Times and NPR, among others.
Mark holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He started his career working in financial risk management at State Street before transitioning to the analysis of the personal insurance market. He's also a five-time Jeopardy champion!
