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Best homeowners insurance in Indiana of 2022

Updated Nov 15, 2022
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How Bankrate chose the best home insurance companies in Indiana

To find the best Indiana homeowners insurance, we reviewed top home insurance companies in the state using our unique rating system and premium data from Quadrant Information Services. Based on our findings, each carrier earned a Bankrate Score out of five points. Scores are based on important features like price, coverage options, financial strength, accessibility and online/mobile tools.

When comparing home insurance companies in Indiana, checking the Bankrate Scores for companies you are interested in can be helpful. Insurers with a high score stand out in multiple areas and are considered strong companies overall. On the other hand, low Bankrate Scores indicate that the carrier might struggle in certain areas, so you should investigate further to see if the company will meet your needs.

Best home insurance companies in Indiana

There are many reputable homeowners insurance companies in Indiana, but not all are created equal. According to our review, the best home insurance companies in Indiana are Erie, Auto-Owners and Nationwide. In addition, some top providers identified offer rates below the statewide average, which is $1,180 per year for a policy with $250,000 in dwelling coverage.

In the table below, you can see which Indiana homeowners insurance companies we recommend, as well as their average annual premiums, Bankrate Scores and third-party ratings.

Home insurance company Bankrate Score Average annual premium for $250K in dwelling coverage J.D. Power score AM Best rating
Erie 4.6 $982 835/1,000 A+
Auto-Owners 4.3 $1,762 831/1,000 A++
Nationwide 4.1 $1,186 812/1,000 A+
Indiana Farm Bureau 4.0 $1,739 N/A A
Encompass Not rated $1,304 N/A A+

Erie

Best for: Low rates
 
Erie offers the cheapest home insurance in Indiana, based on the companies we reviewed. The company is also rated above average by J.D. Power for overall customer satisfaction and has excellent financial strength. In addition to its low rates, Erie stands out for its coverage options, like guaranteed replacement cost coverage, water backup coverage, service line protection and identity theft coverage. There are also a handful of discounts available for policy savings, but Erie offers fewer discounts than some other companies on our list.
 

Auto-Owners

Best for: Add-on coverage
 
Auto-Owners is one of the best home insurance companies for Indiana homeowners looking to customize their policy with add-ons. The company offers a variety of endorsements for more protection, like special personal property coverage, ordinance or law coverage, equipment breakdown coverage and home cyber protection. There are also lots of discounts that may help you earn a lower premium. Overall, Auto-Owners is a strong insurance provider, but one of the downsides is that you must work with an independent agent that represents the company to get a quote or buy a policy.
 

Nationwide

Best for: Discounts
 
Nationwide is our top pick for discounts. The company offers many ways for Indiana homeowners to get a cheaper rate, with discounts for bundling your policies, installing protective devices in your home, renovating major home systems, living in a gated community, insuring a newly purchased home and a few others. Nationwide also offers a special discount to homeowners participating in the smart home insurance program, which is available in select states. In addition, the company offers a good selection of endorsements for added coverage.
 

Indiana Farm Bureau

Best for: Customer service
 
Indiana Farm Bureau offers personalized customer service. To get coverage from this company, you must join the Farm Bureau, a membership-based program. Indiana homeowners interested in Farm Bureau home insurance must work with an agent to get a quote and purchase a policy. However, the company’s agents can help you choose coverage types and policy limits that make sense for your needs and find discounts to help lower your rate. However, keep in mind that Indiana Farm Bureau’s average rates are more expensive than some other companies we reviewed.
 

Encompass

Best for: Replacement cost coverage
 
Encompass may be a lesser-known home insurance company that sells coverage in Indiana. The company is an Allstate company, and its products are sold exclusively through independent agents. Homeowners may consider Encompass if they want to boost their coverage by upgrading to a replacement cost coverage policy. If you purchase the Elite or Deluxe homeowners coverage package, you get coverage limits equal to 200 percent of your home's value for your dwelling, personal property and detached structures. You can also get coverage for increased building costs.
 

How much is homeowners insurance in Indiana?

The average cost of home insurance in Indiana is $1,180 per year, 16 percent less than the national average rate of $1,383 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 $1,820, and the average rate in Illinois is $1,376.
 
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 natural disasters — which could increase the risk of home damage — continue to rise in the Hoosier State, as well as escalating replacement costs across the U.S., according to an analysis from the Insurance Information Institute (Triple-I).
 
While it can be helpful to see average rates, it’s important to remember that home insurance premiums are personalized. Factors like your credit-based insurance score and claim history may impact the cost, as well as the size of your house, the year it was built and the ZIP code. In the table below, you can see the average home insurance premium in several Indiana cities:

Home insurance considerations in Indiana

Indiana residents should prepare for flooding, damaging winds, lightning strikes and winter hazards, caused by severe weather events happening more frequently in 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 coverage types like flood insurance.
 

Common causes of loss in Indiana

Home insurance losses in Indiana are not uncommon. There are a variety of situations that can cause damage to your home or personal belongings, which would be covered under your insurance policy. Here are some of the most common types of losses that Indiana homeowners may face:
  • Tornadoes: Tornadoes are serious weather-related disasters that Indiana homeowners face. In 2021, 20 tornadoes were confirmed in Indiana, and since 1950, more than 1,400 tornadoes were recorded. In most cases, a standard home insurance policy will cover tornado damage.
  • Earthquakes: Homeowners may be unaware that Indiana experiences earthquakes. The last earthquake recorded in Indiana was in June 2021, when a 3.8 magnitude earthquake struck the Indiana-Illinois border, roughly 1.9 miles west of Bloomingdale, IN. Because standard home insurance policies don’t cover earthquakes, Indiana homeowners may consider a separate earthquake insurance policy or add the coverage as an endorsement.
  • Flooding: In Indiana, severe storms are common during summer, often bringing heavy rain and flash flooding. In 2021, there were 103 floods or heavy rain events. A flood insurance policy can be beneficial in protecting your home from flood damage.
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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 consider a flood insurance policy. You can often buy flood coverage from the federally-backed National Flood Insurance Program (NFIP) or from many private insurers that underwrite flood policies.
  • Sewer backup: Homeowners with basements may find it important to add a water and sewer backup endorsement to their policies. If you don’t have a basement, this add-on coverage could help protect your finances if your home’s damage is 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 roof 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 depreciation being factored into your claim payment.
Working with a local insurance agent could be beneficial if you aren’t sure what coverage types are best for your situation.
 

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Written by
Elizabeth Rivelli
Insurance Contributor

Elizabeth Rivelli is a contributing insurance writer for Bankrate and has years of experience writing for insurance domains such as The Simple Dollar, Coverage.com and NextAdvisor, among others

Edited by Managing Editor
Reviewed by Director of corporate communications, Insurance Information Institute