The Best and Cheapest Home Insurance Companies in Iowa (2026)
Find Cheap Home Insurance Quotes in Iowa
What is the best cheap homeowners insurance in Iowa?
What company has the cheapest home insurance in Iowa?
Farmers has the cheapest home insurance in Iowa for most people. A policy with $350,000 in dwelling coverage costs $1,626 per year, on average.
Find Cheap Home Insurance Quotes in Iowa
- For homes worth less than $500,000, Farmers is a cheap choice. But State Farm is a cheaper option if your home is worth $500,000 or more.
- Farmers also has cheap rates for newly built homes, with a $350,000 policy costing $1,072 per year, on average.
- However, State Farm is the cheapest option in 119 of Iowa's cities, so it's worth it to shop around and compare quotes.
Best cheap IA home insurance by dwelling amount
$200,000
$350,000
$500,000
$1 million
Key takeaways
- Iowa home insurance rates have gone up by nearly 91% in the last five years. That's the biggest rate jump of any state in the country.
- Travelers and IMT Insurance have had the biggest rate increases. Both companies have increased rates over 130% since 2021.
- If you can, get replacement cost coverage for your roof. Wind and hail are common in Iowa, and both can easily damage roofs.
Best and cheapest home insurance for most people in Iowa: Farmers
Pros & cons
- Cheap rates
- Lots of discounts
- Widely available across Iowa
- Fewer coverage options vs. competitors
- Customer satisfaction is mixed
Why is Farmers the best?
Farmers has cheap rates for Iowa home insurance, plus lots of discounts to save even more.
How much does Farmers cost in Iowa?
You can get an even cheaper rate if you qualify for some of Farmers' home insurance discounts. For example, you could save by putting on a new roof, having a smart home system, being a military member or working in certain fields.
Farmers also has some good coverage options, including water backup coverage. You can even add coverage to help repairs match the undamaged parts of your house after they're damaged. For example, say a storm damages your siding but you can't find new siding that matches what you had before. This coverage means Farmers will pay to replace the rest of your siding so everything is the same.
Potential issues
Farmers doesn't have as many options for extra coverage as some competitors, such as Shelter and Auto-Owners. If you need more specialized coverage for your home, those companies would be a better option.
Additionally, Farmers' customer satisfaction is mixed. The company gets fewer complaints than expected, according to the National Association of Insurance Commissioners (NAIC). But J.D. Power ranks Farmers below average for both overall customer satisfaction and satisfaction with the claims process.
Best home insurance coverage in Iowa: Shelter
Pros & cons
- Numerous coverage options
- Cheaper-than-average rates
- Good customer service
- Fewer discounts than competitors
- Not the cheapest option in Iowa
Why is Shelter the best?
Shelter has an impressive list of coverage options to help you personalize your home insurance to your specific needs.
For example, you can add coverage to your Shelter home insurance policy for certain farming activities, without having to buy a farm insurance policy. You can also include coverage for damage to landscaping, such as your trees and plants. This could help you repair your lawn and landscaping after Iowa's strong storms damage it.
Shelter also has excellent customer service. According to the National Association of Insurance Commissioners (NAIC), Shelter gets 60% fewer complaints about its Iowa home insurance policies compared to an average company its size.
Potential issues
Shelter isn't the best option if you're on a tight budget. While the company's rates are still below average, they aren't the cheapest in Iowa. Farmers is generally a better option for customer service.
And while Shelter does offer some discounts to help you save, it doesn't have as many available as other companies, like Auto-Owners.
Compare coverage options
Shelter offers more coverage options than most major companies in Iowa.
Although American Family offers more coverage options, it also has higher rates, which means Shelter is a better choice for most people.
Best home insurance discounts in Iowa: Auto-Owners
Pros & cons
- Lots of discounts
- Great coverage options
- Good claims process
- Not the cheapest option
- No online quotes
Why is Auto-Owners the best?
Auto-Owners has a long list of discounts to help you save money on your Iowa home insurance.
You can save for not having a mortgage, paying your annual home insurance rate in full, having smoke alarms and fire extinguishers, and having an automatic water shut-off system.
Auto-Owners also has an excellent claims process. J.D. Power ranks the company well above average for its claims satisfaction. That means most people are happy with the service they get after filing a claim, including how long it took to fix their home.
You can also customize your policy with several extra coverage options that Auto-Owners offers. For example, basements are common in Iowa, which means you may want to consider water backup coverage. This coverage pays for water damage caused when water backs up in a drain line or from a sump pump.
Potential issues
Auto-Owners isn't the cheapest home insurance company in Iowa. Its rates still tend to be below average, but if you're on a tight budget, Farmers is probably a better option.
You also can't get online quotes with Auto-Owners. You have to work directly with an agent to get a quote and buy a policy.
Compare discounts
Auto-Owners has 11 discounts to help you save money on your home insurance.
While Farmers has more discounts, Auto-Owners has more unique savings options. That includes discounts like mortgage-free, as well as savings for for having a water shut-off system and an automatic backup generator.
What are the best-rated homeowners insurance companies in Iowa?
Auto-Owners, Shelter and USAA are the best home insurance companies in Iowa.
All three companies have a low level of customer complaints, according to the National Association of Insurance Commissioners (NAIC). They also offer good coverage options and discounts. However, USAA is only available if you're a military member or family member of someone in the military.
What's the average home insurance cost in Iowa?
Iowa home insurance costs an average of $2,357 per year for $350,000 in dwelling coverage.
That's 24% higher than the national cost of home insurance, which is $1,902 per year. Iowa has the 12th-highest average home insurance rate in the country. That is likely largely because of Iowa's high risk for wind and hail damage.
Average IA home insurance cost by dwelling coverage amount
Iowa home insurance is more expensive than coverage in nearby Wisconsin, Missouri and Illinois, where coverage costs between $1,310 and $2,040 per year.
But home insurance in Minnesota and Nebraska is more expensive than it is in Iowa. In Minnesota, $350,000 in dwelling coverage costs $2,581 per year. And in Nebraska, the same policy costs $3,737 per year. Although both Nebraska and Iowa tend to get hit by strong summer storms, Nebraska usually has more, which results in higher home insurance rates.
Iowa home insurance rates by city
In Des Moines, home insurance costs $3,126 per year, on average, for $350,000 in dwelling coverage.
That's 33% more than the state average for the same amount of coverage. A policy in Cedar Rapids costs $2,913 per year, while Davenport's average home insurance rate is $2,795 per year.
Find Cheap Homeowners Insurance Quotes in Your Area
Princeton, along the eastern edge of the state, has the cheapest home insurance, with an average rate of $2,714 per year. Thurman, in southeastern Iowa near the border with Nebraska, has the most expensive yearly rate, at $3,881.
Cost of IA home insurance by city
Common causes of home damage in Iowa
Iowa's weather can be unpredictable and damaging. High winds, tornadoes, hail, winter storms and flooding can all cause catastrophic damage to homes. Making sure your home insurance covers you for the most common types of severe weather in the state can give you peace of mind.
Does Iowa home insurance cover tornadoes and wind damage?
Iowa is often hit by tornadoes and strong summer storms that come with high winds. Most home insurance policies automatically cover wind damage, including damage caused by tornadoes. You might have a separate deductible for wind, though, and it's usually higher than the deductible for other types of damage.
Iowa recorded 454 instances of high wind, according to the NOAA/National Weather Service Storm Prediction Center. And although only 36 tornadoes hit the state in 2025, there were 124 tornadoes in 2024 and 72 in 2023.
Does home insurance in Iowa cover hail damage?
Fortunately, most home insurance policies automatically cover hail damage. Just like with wind coverage though, you may have a separate, higher deductible to pay if you file a claim after a hailstorm. Hail is common in Iowa, with 144 hailstorms recorded in 2025, according to the NOAA/National Weather Service Storm Prediction Center.
You might also get a discount if your home is less likely to be damaged by hail. This can include having hail-resistant roofing, siding and windows.
Does home insurance in Iowa cover snow and ice?
Winter storms are common in the plains. Cold temperatures can cause pipes to freeze and burst. Snow and ice can build up on roofs, damaging the structure of your home and creating leaks.
Home insurance normally covers damage caused by cold temperatures, ice and snow. But you probably won't have coverage if a lack of home maintenance contributed to the damage. Before winter hits, make sure your home is ready. That way, if you do have damage, insurance is more likely to pay for it.
Does Iowa home insurance cover flooding?
Home insurance does not cover damage caused by floods. You need to buy a separate flood insurance policy to get coverage for flood damage.
The Federal Emergency Management Agency (FEMA) has recorded over 1,800 floods in Iowa since 2015. All together, those floods caused over $72 million in damage.
Even if you don't live near a river or body of water, you could still be at risk for floods. Even an inch of floodwater can cause tens of thousands of dollars of damage.
How to save on home insurance in Iowa
Home insurance in Iowa can be expensive, depending on where you live and how much coverage you need. But you can take a few steps to get a cheaper home insurance policy.
Is Iowa home insurance getting more expensive?
Home insurance prices have surged 90.9% in Iowa over the last five years.
That's the biggest increase of any state. The biggest increase was in 2024, when rates rose by more than 26%.
Iowa home insurance rate changes, 2021-2025
IMT Insurance and Travelers both raised rates by over 130% in the last five years. USAA has had the lowest level of rate increases, but its rates have still gone up by over 23% since 2021.
Frequently asked questions
How much is home insurance in Iowa?
Home insurance in Iowa costs $2,357 per year, on average, for a policy with $350,000 in dwelling coverage. Your rate will be different based on where you live, the details of your home, if you've filed any home insurance claims and more.
What is the cheapest homeowners insurance in Iowa?
Farmers has the cheapest rates for policies with $350,000 in dwelling coverage, costing $1,626 per year, on average. Depending on how much coverage you need, other cheap companies include West Bend, State Farm, Auto-Owners and Shelter.
Who has the best home insurance in Iowa?
Farmers has the best home insurance in Iowa for most people because of its cheap rates and discounts.Shelter is a good option if you want to add extra coverage to your policy, and Auto-Owners has the best discounts.
Methodology
ValuePenguin's experts got home insurance quotes from 10 top home insurance companies in Iowa for every residential ZIP code in the state. The quotes are for a 45-year-old married man who hasn't filed any home insurance claims. ValuePenguin used a 1,623 square foot home built 47 years ago. This is based on the average home in Iowa. New home data is for a home built in 2025.
Our experts used the following coverage limits to get average rates for different home values:
- Dwelling coverage: $200,000, $350,000, $500,000 or $1 million
- Personal liability: $100,000
- Medical payments: $1,000
- Deductible: $1,000
Quotes are from Quadrant Information Services. Quadrant uses publicly available insurance company filings to source its rates. These rates are averages. Your rates will be different based on your situation.
ValuePenguin's ratings of home insurance companies use average rates, coverage options, discounts, customer complaint numbers from the National Association of Insurance Commissioners (NAIC) and J.D. Power scores from the home insurance customer and claims satisfaction surveys.
Sources:
About the Author
Senior Writer
Cate Deventer is a Senior Writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare & Medicaid
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident & Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
