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 and AM Best. After we determined which companies had positive customer service scores and financial strength ratings, we verified that they provide coverage throughout Indiana. Once we identified the top home insurers in the state, we focused on each company’s property insurance policy 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. We combined all these factors into a proprietary Bankrate Score. Each Score is out of 5.0; the higher the Score, the higher that company placed in the ranking categories.
According to our analysis, here are the five best Indiana homeowners insurance providers:
|Home insurance company||Bankrate Score||Average annual premium for $250k dwelling coverage||J.D. Power customer satisfaction score|
|Indiana Farm Bureau||4.0||$1,579||Not rated|
|Cincinnati Insurance||Not rated||$629||Not rated|
Erie Insurance is a super-regional insurer that offers Indiana policyholders benefits, like credits, for certain security devices and home business protection. The company also offers coverage for business, boats, cars, SUVs, RVs, ATVs, snowmobiles and life products. Erie has a strong balance sheet and is rated A+ (Superior) by AM Best. While the carrier offers more standard features than some competitors, it’s not the cheapest on our list, so it may not be the best option for homeowners on a tight budget.
Learn more: Erie Insurance Review
Nationwide Mutual Group, the eighth-largest U.S. home insurer based on market share according to the Insurance Information Institute (Triple-I), may be able to meet insurance needs for a wide variety of Indiana homeowners, and its user-friendly mobile app is an option for consumers who like to manage their policies from wherever they are. The insurer also offers auto, motorcycle, RV, boat, life, travel and pet insurance coverage, so it could be a good option for people looking to consolidate their products with one company and earn a bundling discount. While Nationwide has the lowest customer satisfaction score on our Indiana list, the Midwest-based company carries an A+ (Superior) financial strength rating from AM Best.
Learn more: Nationwide Insurance Review
Indiana Farm Bureau
Indiana Farm Bureau Insurance can provide robust home insurance for Hoosiers across the state, including standard homeowners protection for dwelling, other structures, personal property and liability. This Indianapolis-based 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, but isn’t rated for customer service by J.D. Power. You may want to consider talking with some Farm Bureau members about this provider’s service to get an idea of their personal experiences before deciding if this regional carrier is right for you.
Learn more: Farm Bureau Insurance Review
Allstate Insurance, the second-largest U.S. home insurer by market share, 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 policyholders who rent their homes via vacation platforms like Airbnb. The company is rated A+ (Superior) by AM Best for its financial strength. Allstate has a higher-than-average complaint index rating from the National Association of Insurance Commissioners (NAIC), however, which could indicate customer service frustrations from current policyholders.
Learn more: Allstate Insurance Review
Transparent pricing and flexible billing options can make Cincinnati Insurance a user-friendly choice for home coverage for many Indiana residents. Cincinnati offers a variety 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. Without a J.D. Power rating, though, you might want to gather personal research on its level of customer service before choosing Cincinnati for your policy.
Learn more: Cincinnati Insurance Review
How much is homeowners insurance in Indiana?
The average cost of home insurance in Indiana is $1,150, which is 12% less than the national average of $1,312 based on $250,000 in dwelling coverage. Located between Illinois and Ohio, Indiana is also in the middle for average homeowners insurance cost. In Illinois, the average annual rate is $1,322 but Ohio’s average 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 due to the state’s lower average price of real estate compared to neighboring states. However, rates may increase, as the likelihood of natural disasters — which could increase the risk of home damage — continues to rise in the Hoosier State, as well as escalating replacement costs across the U.S., according to a new analysis from the Triple-I.
Home insurance considerations in Indiana
Indiana residents should be prepared for the impacts of flooding, damaging winds, lightning strikes and winter hazards, 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, as well as optional coverages like flood insurance.
Indiana common causes of insurance loss
It’s not uncommon to file a claim as a homeowner — in fact, it’s why you carry home insurance coverage to financially protect you from covered losses. 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 the Federal Emergency Management Agency (FEMA), $273 million in National Flood Insurance Program (NFIP) claims have been paid to Indiana homeowners since 1978. Despite the state’s higher-than-average risk of flooding, FEMA indicates only 1% of Indiana homes have flood coverage, one of the lowest take-up rates in the U.S. Flood damage is not covered by a standard home insurance policy, so having the proper protection could be essential to your financial well-being, even if you don’t live in a designated flood zone.
Common insurance coverage options in Indiana
Once you know what common types of damage happen in your area, you can tailor your home insurance policy to meet your specific needs. Some coverage options for Hoosiers to consider are:
- Flood insurance: Home policies don’t cover flood damage, so you may want to look into a flood insurance policy. You can often buy flood coverage from the federally-backed NFIP, as an endorsement added to your home policy or from many private insurers who underwrite their own flood policies.
- Sewer backup: If you have a basement, it may make sense to add a water and sewer backup endorsement to your policy. Even if you don’t have a below-ground level to your home, this common add-on coverage could help protect your finances from the damage 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 may qualify for replacement cost coverage. Indiana’s weather hazards — including damaging straight-line winds, hail and tornadoes — can lead to roof damage. This endorsement can help ensure that you’re paid the amount to replace the damaged portions of your roof, rather than having depreciation factored into your claim payment.
Tornadoes and severe winds are commonly covered by standard home insurance, but you may want to check the policy to make sure before signing up.
If you aren’t sure what coverage types are best for your situation, working with a local insurance agent could be beneficial.
Frequently asked questions
What is the best homeowners insurance in Indiana?
The best home insurance company will depend on your specific wants and needs. For example, some homeowners might want a company with a user-friendly mobile app, where they can manage their policy and file claims, while others are simply looking for the cheapest home insurance policy they can find. Understanding your needs and getting quotes from a few different carriers could help you find the right option for you.
Is homeowners insurance required in Indiana?
The state of Indiana does not require its residents to have homeowners insurance, but you’ll likely be required by your lender to have property insurance if you have a mortgage or another type of home loan. Even if it is not required, home insurance is often an important part of your financial plan, and a proper policy can help shield you and your family from financial devastation should your home be severely damaged.
Do I need to have a flood insurance policy in Indiana?
Flood zones vary across the state of Indiana, but if you have a mortgage and you’re in a designated FEMA flood zone, you’ll likely be required to have a flood insurance policy. But even if you have no mortgage, you may want to check the flood zone you are in and how common flood damage is in your area to help determine whether you need this type of coverage. You can check your flood zone with FEMA’s tool and then use that information to have a conversation with your insurance agent about your flood risk.
Do Indiana homeowners policies include additional living expenses coverage?
Like most standard homeowners insurance policies across the U.S., Indiana homeowners policies include loss of use/additional living expenses coverage if your home becomes uninhabitable due to a covered loss. ALE covers living expenses incurred by you so your household can maintain its normal standard of living. This typically includes lodging, moving costs, grocery or restaurant bills and storage expenses.
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.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.