The average annual cost of home insurance in Indiana is $1,150 for dwelling coverage of $250,000, according to Bankrate’s 2021 study of quoted annual premiums, well below the national average of $1,312. According to data from the Insurance Information Institute (Triple-I), the Hoosier State racked up more than $6.5 million in incurred insured losses in 2020 for homeowners, with wind, hail, fire and lightning damage topping the list of losses. To make matters worse, Indiana is also subjected to tornadoes, getting approximately 39 confirmed twisters in 2020, according to the Triple-I.
When looking into homeowners insurance coverage in Indiana, it is important to consider factors like the value of the home, types of coverage, deductible amounts, coverage add-ons and what perils are covered under the policy. The cost of home insurance in Indiana is also based on your age, marital status, ZIP code, claims history, credit-based insurance score and several other rating factors.
Best home insurance companies in Indiana
To find the best home insurance companies in Indiana, we looked at ratings from credible third-party organizations like J.D. Power, AM Best and the Better Business Bureau. After we determined which companies had positive ratings, we checked to see if they provide coverage in Indiana. Once we found the top home insurers in the state, we focused on each company’s individual policies and how well the offered features match up to the needs of homeowners in the area. We also used 2021 rate data from Quadrant Information Services to determine average rates.
According to our analysis, here are the five best Indiana homeowners insurance providers:
|Home insurance company||Average annual premium for $250K dwelling||J.D. Power customer satisfaction score|
|Cincinnati Insurance||$629||Not rated|
|Indiana Farm Bureau||$1,579||Not rated|
Allstate has a variety of coverage options that can help meet the needs and wants of many Indiana residents. Options include identity theft restoration, water backup coverage, green improvement reimbursement and HostAdvantage for people who rent their homes with vacation services like AirBnB. Allstate, which is the second largest U.S. homeowners insurer based on market share, also provides other insurance products for businesses, cars and renters. The company is rated A+ (Superior) by AM Best for its financial strength.
Learn more: Allstate Insurance Review
The transparent pricing and flexible billing options make Cincinnati Insurance a user-friendly choice for home coverage for many Indiana residents. Cincinnati offers bundles of coverage options to help people find what they need. Aside from homeowners, the company also offers auto, business and life insurance products. Cincinnati carries an A+ (Superior) financial strength rating from AM Best.
Learn more: Cincinnati Insurance Review
Erie is a super-regional insurer that offers eligible policyholders benefits like credits for certain security devices and home business protection. The company also offers coverage for business, boats, cars and life products. Erie has a strong balance sheet and is rated A+ (Superior) by AM Best.
Learn more: Erie Insurance Review
Indiana Farm Bureau
Located in downtown Indianapolis, Indiana Farm Bureau provides comprehensive Indiana home insurance for fellow Hoosiers, including protection for dwelling, other structures, personal property and liability. This provider also offers coverage for business, boats, farm and crop, life and renters. Indiana Farm Bureau carries an A- (Excellent) financial strength rating from AM Best.
Learn more: Farm Bureau Insurance Review
Nationwide, the eighth largest home insurer in the U.S. based on market share, can meet insurance needs for a wide variety of people, and its user-friendly mobile app is an option for people who like to manage their policies from wherever they are. Nationwide reports that it’s possible to save up to 20% when you bundle policies, and other available discounts could save eligible policyholders even more. The full-lines insurer also offers auto, motorcycle, RV, boat, life, travel and pet insurance coverage. Nationwide holds an A+ (Superior) financial strength rating from AM Best.
Learn more: Nationwide Insurance Review
How much is homeowners insurance in Indiana?
The average cost of home insurance in Indiana is $1,150, which is 14% lower than the national average of $1,312 based on $250,000 in dwelling coverage. Geographically sandwiched in between Illinois and Ohio, Indiana is also in the middle for average homeowners insurance cost. In Illinois, the average rate is $1,322 but Ohio’s rate for the same coverage is slightly lower than Indiana’s at $1,111 per year.
The lower-than-average cost of homeowners insurance in Indiana is likely due to its lower number of natural disasters compared to many other Midwestern states. However, rates may increase as the likelihood of natural disasters spurring flooding and tornadoes continues to increase in the Hoosier State. Though flooding is not covered by homeowners insurance, most standard home policies cover tornado damage in Indiana.
Home insurance considerations in Indiana
Indiana residents should be prepared for the impacts of flooding and damaging winds which are caused by severe weather events that are happening more frequently across the state. Consider the damage caused by natural disasters when determining the types of homeowners insurance to purchase for your Indiana home.
Indiana common causes of insurance loss
It’s not uncommon to file a claim as a homeowner—insurers expect it with their policyholders. Here are a few common covered insured losses that Indiana homeowners encounter:
- Fire, smoke, windstorm, hail and lightning damage
- Freezing, rupturing or accidental overflow of plumbing, heating and air-conditioning
- Identity and credit card theft
- Trees and other falling objects
According to FEMA, $273 million in National Flood Insurance Program claims have been paid to Indiana homeowners since 1978. Despite the state’s high risk of flood, FEMA indicates only 1% of Indiana homes have flood coverage. Home damage caused by wind, hail, fire and lightening is also a common loss occurrence for Indiana homeowners. In fact, six of top 10 costliest U.S. catastrophes involving tornadoes have impacted Indiana, according to the Triple-I.
Common insurance coverage options in Indiana
Specific coverage types may differ from company to company, but here are a few of the common coverage options included in most standard Indiana home insurance policies.
- Dwelling: This covers damage to the house and attached structures, such as a garage or porch. Dwelling coverage also pays for permanent fixtures like plumbing and electrical wiring.
- Other structures: This covers damage to freestanding structures like fences, tool sheds, in-ground swimming pools, gazebos and other structures that are not attached to the main house. Consider the cost to replace all detached structures if a tornado were to damage the entire property to determine how much other structures coverage you may need.
- Personal property: This covers the value of personal possessions like electronics, furniture, clothing and jewelry. Most home insurance policies include a percentage of personal property based on the dwelling coverage amount and may allow you to increase this coverage if needed.
- Loss of use: This covers additional living expenses for temporary lodging and related expenses while the insured home is under repair for a covered loss and deemed uninhabitable. Without this optional coverage, you will have to pay for your own temporary living expenses until you can move back to your home.
Tornadoes are a peril that is commonly covered by home insurance, but check the policy to make sure before signing up.
Flood insurance is generally offered separately from standard home policies. Some companies, like Erie, offer insurance for flooding, but many homeowners choose a policy from the federally-backed National Flood Insurance Program. Dozens of private insurers that specialize in flood coverage are also an option for Indiana homeowners that want this additional protection.
Frequently asked questions
What is the best homeowners insurance in Indiana?
The best home insurance in Indiana depends on the insurance needs of the homeowner. Some people want coverage at the lowest price available, while others desire comprehensive coverage for all types of perils and do not mind paying a higher premium for the best insurance policy. Determine your needs and get several quotes to determine the best option for you.
Is homeowners insurance required in Indiana?
The state of Indiana does not require its citizens to have homeowners insurance, but most lenders require home insurance as a prerequisite for getting a mortgage and closing on your home purchase. Even if it is not required, it is important to note that if you don’t have home insurance, you will need to pay for all losses out of pocket.
Where can I find out more about homeowners insurance?
To learn more about home insurance, check out Bankrate’s robust homeowners page on the subject. The National Association for Insurance Commissioner’s Consumer Guide to Homeowners Insurance also provides valuable information for homeowners.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.