Is Home Insurance Expensive in Iowa?

Home insurance, and its increasing cost, is a frequent topic in our team and with our clients. So you might be surprised to learn that home insurance cost in Iowa is about average for the nation. In 2023, the average annual Iowa rate was $2,120, with an expected average increase of 7% pushing that to $2,278 in 2024, according to Insurify. The US average in 2023 was $2,377 with a projected 2024 increase of 6%.
The most expensive states for home insurance are those most susceptible to damaging storms, with the top 5 being Florida, Louisiana, Oklahoma, Texas and Mississippi. Florida home insurance rates in 2023 averaged nearly $11,000, 73% higher than second-place Louisiana ($6,354 a year). However, Insurify projected Louisianans to see a 23% increase in 2024. Nine of the nation's 10 most expensive cities for home insurance are in Florida and Louisiana, with Hialeah, Florida at $17,606 (that's about 8 times the cost in Iowa). But even middle-income homeowners in places like Broward County are paying at least $5,000 annually (if they can find an insurer).
Iowans thinking of moving should consider the cost of home insurance, particularly if they are eyeing the Gulf Coast. While some areas of these states can offer comparable home prices to Iowa, and a few, like Texas and Florida, don't have income taxes, other costs like insurance could put a home out of reach. This is why it is important to talk to a real estate professional before making any move.

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