Best homeowners insurance in Indiana for 2023

Compare the best homeowners insurance companies in Indiana

Bankrate used data provided by Quadrant Information Services to determine average rates for the top Indiana home insurance companies. Homeowners in Indiana pay an average of $1,225 for $250,000 of dwelling coverage, which works out to about $102 a month. This is 14 percent below the national average of $1,428.

To further our analysis, we reviewed financial strength ratings from AM Best and customer satisfaction scores from J.D. Power, then awarded each company a Bankrate Score to reflect our overall findings. Top performers included Erie, Auto-Owners, Nationwide, Indiana Farm Bureau and Encompass.

*Premiums are for $250K in dwelling coverage

The top 5 home insurance companies in Indiana

Additional Indiana home insurance companies to consider

Cincinnati Insurance

Westfield

Indiana Farmers Insurance

Cheapest home insurance companies in Indiana

Indiana home insurance costs have risen over the past five years which is prompting many homeowners to look for more affordable policies. If finding the best cheap home insurance in Indiana is your goal, here are five insurance providers with some of the lowest average annual insurance rates in The Hoosier State.

*based on $250K dwelling coverage
**USAA is only available to eligible military members

How to get cheap home insurance in Indiana

Although Indiana's average rates for home insurance are already on the low side, it's likely that you want to find the best possible coverage at the lowest possible rate. Here are a few strategies you can use to help you save money on your Indiana home insurance:

1. Shop around: Don't settle for the first insurance quote you receive. Ask several companies to give you a quote, making sure you are asking for the same coverage levels from each one (or as close to the same as possible). You may be surprised to find a wide range of prices.
2. Bundle your policies: Many insurers will offer savings on your premium if you purchase more than one insurance product from them. Most frequently, homeowners and auto insurance are bundled. But you could also ask an agent about bundling motorcycle, boat or another type of insurance.
3. Work on your credit score: Individuals with high credit scores are likely to be offered the best rates by insurers since they have a demonstrated history of paying their bills promptly and fully. A low credit score may lead your insurer to wonder if you'll be able to pay your premium on time every month.
4. Repair your roof: An older or damaged roof may be the cause of a costly claim, so you may earn a lower rate if you replace your roof. Installing one made of storm-resistant materials could even earn you a discount.

Best home insurance discounts in Indiana

Another way to save money on your Indiana homeowners insurance is by taking advantage of discounts. Almost all insurers offer at least a few. Experts recommend contacting your agent at least once a year to ask which discount opportunities you may qualify for. Here are a few that are common in Indiana:

How to save on home insurance policy renewals in Indiana

While homeowners in Indiana are lucky to have lower-than-average insurance rates, finding additional ways to save money is a smart financial move. You can find ways to put money back into your pocket without losing valuable coverage by exploring various strategies. Here are a few ideas to consider:

• Only submit a claim when necessary: Insurance is a back plan and should only be used when the cost to repair your home is more than what you can reasonably afford. Frequent claims increase your premium and too many small claims can be a cause for non-renewal.
• Keep up with home maintenance: Dwellings kept in good condition are less likely to experience damage from small storms and wind gusts. When left to deteriorate, homes may not meet underwriting standards, which can cause a loss in benefits or for claims to be denied.
• Mitigate your risks: Be aware of your area's natural hazards and ensure your home is safeguarded. Some safety measures are simple, such as keeping gutters clear and removing dry debris from your yard. More expensive updates, like installing hurricane shutters, may help you earn a mitigation discount.
• Inquire about discounts: If your renewal premium is more than what you anticipated, speak with your insurance agents about any discount opportunities that you aren’t taking advantage of yet.
• Shop your policy early: You don’t have to wait until your renewal to shop for a better rate. In fact, many insurance providers offer discounts for early bird shoppers who can secure coverage at least 10 days before the policy start date.

How much is home insurance in Indiana?

The average cost of home insurance in Indiana is $1,225 per year, 14 percent less than the national average rate of $1,428 based on $250,000 in dwelling coverage. Indiana home insurance rates are also cheaper than some neighboring states. For example, the average home insurance premium in Kentucky is $2,009, and the average rate in Illinois is $1,410.

Indiana homeowners insurance rates by city

Home insurance rates vary from city to city and from home to home. Aside from variables like square footage and building material, factors such as land elevation, proximity to a fire department and risks of vandalism are different from one town to the next. Your insurance company weighs these risks and prices the policy accordingly. See the map and data table below for more information on how Indiana home rates change depending on location.

What does home insurance cover in Indiana?

Home insurance is written on a standardized form. Which form you choose depends on what coverage you need, and then each insurance provider adds benefits or exclusions to make its policies unique. For example, HO-3 Special Form is the most common type of homeowners policy. It is written on an open-peril basis for dwelling and other structures and named perils for personal property. This simply means that your dwelling and other structures have coverage from every kind of peril, except what is specifically excluded and your personal property is only covered for the perils are listed in the policy documents.

In areas prone to certain types of disasters, insurance providers can exclude perils to mitigate their risk. So, what does this mean for your Indiana home insurance? While most HO-3 policies offer the same coverage, understanding the risks inherent to your home can help you identify coverage gaps. Here are the most common damages covered by a standard HO-3 policy you are more likely to experience in Indiana. Make sure to review your policy paperwork to learn the specifics regarding your policy.

• Fire and lightning
• Windstorm, hail and tornadoes
• Weight of ice or snow
• Damage from vehicles
• Smoke
• Vandalism
• Falling objects

Additional home insurance coverage types in Indiana

Once you learn about common factors that cause damage to homes in your area, you can better tailor your home insurance policy to meet your specific needs. Working with a local insurance agent could be beneficial if you aren’t sure what coverage types are best for your situation.

Coverage options residents of the Hoosier State may want to consider include:

• Flood insurance: Standard homeowners insurance doesn’t cover flood damage, so you may want to purchase a flood insurance policy. Indiana experienced 76 flooding or heavy rain events in 2022 alone. You may be able to buy flood coverage from the federally-backed National Flood Insurance Program (NFIP) or from private insurers that underwrite flood policies.
• Earthquake insurance: Earthquakes are excluded from home policies and Indiana is near two major seismic zones. While the most recent earthquake was only a magnitude of 2.3, homeowners may want to consider adding an earthquake endorsement to their policy considering the financial impact damage from earthquakes can cause.
• Sewer backup: Homeowners with basements may find it important to add a water and sewer backup endorsement to their policies. But even if you don’t have a basement, this add-on coverage could help protect your finances if damage is caused by drain-line backups. It also covers sump-pump failures during a power outage.
• Roof replacement cost: If your roof is new enough and in good condition, you might qualify for replacement cost roof coverage. Indiana’s weather hazards — including damaging straight-line winds, hail and tornadoes — may lead to roof damage. This endorsement helps ensure that your payout is enough to replace the damaged portions of your roof, rather than receiving a payout equal to the depreciated value.

Common Indiana home insurance problems

Homeowners in Indiana don’t experience the types of issues when trying to obtain home insurance that other states have, like Florida, Louisiana and California. However, there may be some concerns on the horizon that Hoosiers should be aware of. Due to changes in weather patterns and climbing average temperatures, Indiana is already starting to have more precipitation than average. According to the Indiana Climate Change Impacts Assessment, Indiana may see 6 to 8 percent more rainfall per year by 2050.

This increases the risk of flooding in areas that do not have flood insurance and are not included in FEMA’s flood zone map. If you are concerned with potential flooding, check your address on First Street Foundation’s Risk Factor model to see what your flood risk is today and 30 years from now.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 current rates for 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.

Bankrate Score

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.