Best homeowners insurance in Indiana of 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

How Bankrate chose the best home insurance companies in Indiana

Bankrate began its analysis of the best Indiana homeowners insurance companies with rate data supplied by Quadrant Information Services. We also looked at third-party rankings for financial strength and customer service, as well as other indicators of customer satisfaction. Our research resulted in a Bankrate Score, from 0.0 to 5.0, which is intended to help homeowners determine the best company for their needs. A higher Bankrate Score indicates an insurer that excels in all areas, from average rates to digital conveniences.

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.

The lower-than-average cost of homeowners insurance in Indiana may be due to its lower average price of real estate compared to neighboring states. However, rates may go up as natural disasters become more prevalent in the Hoosier State and pose an increased threat to property. Escalating replacement costs across the U.S. are driving up insurance prices too, according to an analysis from the Insurance Information Institute (Triple-I).

How to find the best 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.

Common 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:

Home insurance coverage options 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. 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.
• 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.

Working with a local insurance agent could be beneficial if you aren’t sure what coverage types are best for your situation.

Frequently asked questions