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Iowa homeowners enjoy some of the lowest insurance costs in the nation, even as insurance premiums rise sharply in coastal and climate-exposed states.
Data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report show that Iowa households remain relatively insulated from the affordability challenges seen elsewhere.
Iowa’s Insurance Costs Stay Affordable
According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Iowa homeowners with a mortgage typically pay $1,000–$1,499 annually for homeowners insurance, while those without a mortgage also average $1,000–$1,499. Statewide overall costs fall into the same $1,000–$1,499 range.
Iowa has 958,213 insured homeowner households in total—556,765 with a mortgage and 401,448 without. Among mortgaged owners, 58,135 pay less than $100 annually and 28,820 pay $4,000 or more. Among those without a mortgage, 70,822 pay less than $100 and 16,588 pay $4,000 or more.
Compared with nearby states, Iowa is on the more affordable end. Illinois, Indiana, and Wisconsin homeowners with a mortgage all average $1,000–$1,499 annually. Minnesota trends slightly higher, with mortgaged households paying $1,500–$1,999. Missouri is also somewhat higher, with mortgaged homeowners paying $1,500–$1,999. Nebraska, by contrast, is more expensive, with costs in the $2,000–$2,499 range. This positions Iowa as one of the most affordable states in the Upper Midwest.
Climate Risks Across the Region
The Realtor.com 2025 Climate Risk Report highlights how the steepest insurance burdens are concentrated in coastal metros. Miami homeowners lead the nation, with average premiums of $22,718 annually, or 3.7% of median home value. Cape Coral, Tampa, and Sarasota also rank among the highest for insurance burden.
Iowa does not appear among the metros most exposed to severe flood, hurricane wind, or wildfire risks. However, the state does face severe thunderstorms, tornadoes, and localized flooding, which can impact certain communities.
While these hazards can generate insurance claims, they have not yet pushed statewide premiums anywhere near the levels seen in the Gulf Coast or wildfire-prone Western states.
A National Affordability Struggle
Even with Iowa’s relatively low costs, affordability pressures are growing across the country. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half reported difficulties obtaining or renewing their coverage.
Those concerns are already influencing buying decisions. Nearly 30% of homebuyers said they had changed the geographic area they were searching in due to insurance concerns, while another quarter said they had overhauled their entire strategy. Even more worrisome, 58% of homeowners said they would consider dropping insurance altogether if premiums became too high, with Gen Z the most likely to go without coverage.
For now, Iowa’s affordability provides homeowners with a degree of stability, making it one of the lowest-cost states in the Midwest. But as climate risks and affordability pressures mount nationally, even relatively protected markets could face rising premiums in the years ahead.
This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.