Best and Cheapest Homeowners Insurance in Indiana

Although it’s usually a prime example of classic Midwestern living, Indiana does experience weather conditions that, at times, can turn brutal. Parts of the state are prone to tornadoes, harsh winters, and lake-effect snow. When getting your quote for homeowners insurance in Indiana, you’ll want to know how you’re covered.

Key Takeaways:

The homeowners insurance in Indiana average cost is about $2,633 per year for $300,000 worth of dwelling coverage. You can pay more or less than this, depending on how much insurance you need. Certain characteristics about yourself and your property will also influence how much you spend.

It’s important to note, too, that homeowners insurance costs are on the rise. In Indiana, costs have been rising for a number of reasons, like more frequent and severe storms and inflation causing the price of construction materials to rise.

Larger, more expensive homes in Indiana will need more coverage than smaller, simple homes. This is primarily due to higher replacement costs, which raise your dwelling coverage needs. See how the average rate changes based on the replacement cost of your home below.

As you can see, the amount of dwelling coverage you have on your policy can drastically change your premiums. However, dwelling coverage isn’t even half of what your policy protects. 

When you invest in Indiana property insurance, you get comprehensive protection for your property and financial liability in several ways. Every homeowners insurance policy in the state comes with the following coverages:

Coverage A: Dwelling — Dwelling coverage protects your home structurally, safeguarding the physical components that make up your house, such as the roof, walls, floor, air conditioning, wiring, and more. 

Carriers determine the amount of dwelling coverage you need by looking at your home’s replacement cost, which is the amount it would take to rebuild your house from scratch based on labor and material costs.

Coverage B: Other Structures — Other structures coverage covers permanent fixtures and features on your property that aren’t attached to your main house. Such features would include fences, sheds, detached garages, gazebos, and more.

Standard policies for house insurance in Indiana typically allot other structures coverage limits that are 10% of your dwelling coverage limits. For example, if you had a $250,000 dwelling coverage limit, you’d likely have $25,000 of other structures coverage.

Coverage C: Personal Property — Personal property coverage protects your belongings in and around your property. Your clothes, furniture, electronics, tools, jewelry, and more fall under personal property coverage. 

If these items get damaged by a covered peril or stolen, your insurer can reimburse you on an actual cash value or replacement cost basis.

Coverage D: Loss of Use — Loss of use coverage applies if you’ve been forced to move out of your house due to covered property damage. While your provider is repairing your home, they can pick up the tab on your lodging, food, gas, and more while you’re displaced through loss of use coverage. Loss of use coverage limits are often around 20% of your dwelling coverage limit, no matter which insurance company of Indiana you choose.

Coverage E: Personal Liability — Personal liability coverage financially protects you if you’re found liable for someone’s injury. Let’s say someone slips and falls on your stairs, or your dog bites someone. If that person pursues you for damages, your liability coverage can cover their medical expenses and your legal fees.

Coverage F: Medical Payments — Medical payments coverage is similar to liability coverage, but it’s set aside for only minor injuries. Liability limits are at least $100,000 and often higher, while medical payments limits are typically around $2,000 to $5,000.

The best home insurance in Indiana will be the policy and company that protects you the best at a price that works for you. This option will vary by person depending on several variables. Your choice may not be the best for someone else, which is why you should compare many facets of different companies.

Money is the primary concern for most people when it comes to insurance coverage. We analyzed some of the top-rated insurance companies in Indiana. You can see their average rates based on a policy with $250,000 in dwelling coverage below.

As you can see, some of the nation’s top companies offer great rates, like Nationwide and Allstate in Indiana. Similarly, some smaller, regional companies like Erie and Indiana Farm Bureau offer even lower rates, coming in at about 20% below the average rate in the state.

There are plenty of insurers to choose from in Indiana, both big and small. Though not represented on this list, local insurers like Indiana Farmer Insurance and Hoosier Insurance are popular among residents.

As you can probably tell, there’s a lot to keep track of when shopping for homeowners insurance in the Hoosier State. While we’ve gone over some costs for the average homeowners insurance in Indiana, there’s still so much to know. We’ve gone over some average homeowners insurance rates in Indiana. 

In addition to looking at average premiums, you may also want to compare customer service experiences from different companies to see what dealing with them may be like. You can also look for referrals through friends and family or consult one of the many independent insurance agents in Indiana to help you find the right choice.

You can also compare Indiana insurance companies’ financial strength through certain rating agencies like A.M. Best or Moody’s to find more information. the best homeowners insurance in Indiana. Your state’s department of insurance website may have some of this information. Reading reviews people leave online can also offer some valuable insight into providers.

There are over a hundred companies that can offer you coverage. Keep reading to learn what to expect from Indiana home insurance companies regarding cost factors, requirements, and more.

Based on our table above, Allstate and Erie have some of the cheapest home insurance in Indiana. These might be good places to start your coverage search, but you should always compare several options before buying a policy to know you’re getting the best deal.

But, know that the cheapest policy isn’t always the best. If you experience great customer service with one provider, you may be willing to pay a little more for their quality care.

Homeowners can bundle their home insurance policy with their car insurance. Different companies have different bundling discounts for home and auto insurance in Indiana, and you may be able to save anywhere from 10-25% on your premiums. 

Some other common discounts you may be able to score through your insurer are a home security discount, a discount for going claim-free for a set number of years, or a discount based on your age. 

When looking for cheap home insurance in Indiana, ask providers about bundling discounts and other potential discounts you may qualify for. As 83% of homeowners have experienced a rate hike on their Indiana insurance policies in the last five years, any savings are worth looking into.

If you’re having trouble getting a premium in the range of the state’s average of $2,633, it may not be something you can control. Insurance companies analyze a variety of risk factors before offering a policy through a process called underwriting. They need to do this to verify that offering a policy is a financially sound move for them. Each company has a slightly different way of underwriting, but many factors that influence premiums are still the same.

Some of the most important factors that affect homeowners insurance rates in Indiana are:

Home insurance companies prefer to cover newer houses because newer homes are generally safer and have fewer issues that can lead to a claim. Wear and tear-related problems, such as old roofs, pipes, or siding, can make it difficult for you to find cheap Indiana insurance, and may even jeopardize your ability to get coverage entirely. Older home components can negatively affect your home’s ability to withstand severe weather if they don’t cause a claim directly. 

The stylings and features of your house can also affect rates. Brick houses are sturdier and more fire-resistant than frame homes. As a result, brick homes may have lower premiums comparatively. Also, certain features can raise premiums, such as trampolines, pools, or playground equipment. Conversely, features like deadbolt locks or home security systems can lower premiums.

Indiana has certain weather-related events that insurers must take into account also. Homes closer to Lake Michigan may be more prone to heavy lake-effect snow, which can cause frozen pipes, ice dams, and more. Those close to water may struggle to bind cheap homeowners insurance in Indiana.

Additionally, southern parts of the state are prone to tornadoes. Insurers will note if you live in an area where tornado damage is more common, which can raise your rates. You may also pay more if you live in a high-crime area.

Aspects of your policy also affect how much you pay. Choosing a higher deductible can lower your premiums, while opting for a lower deductible, which puts your insurer on the hook for more money in case of damages, will raise your premiums. When using a home insurance calculator in Indiana, like our free quoting tool, you can see which option makes more sense for you.

Unfortunately, homeowners insurance doesn’t cover damage from flooding. Since Indiana is prone to some hefty precipitation caused by harsh winters and summer storms, some homeowners may opt to bind a separate Indiana flood insurance policy for coverage.

Depending on your flood zone, you may want to consider binding such a policy. Luckily, here at Clovered we can get you in touch with a private insurer that offers flood insurance, or you may bind a policy with the federally-backed National Flood Insurance Program (NFIP). 

State governments regulate insurance carriers to verify that companies don’t act outside their rights. The law gives benefits to providers and consumers.

For instance, laws allow companies big and small, like Indiana Mutual Insurance or Progressive Insurance in Indiana to consider your claim activity when deciding to renew your policy. Filing several claims can raise your premiums, and filing too many claims within a short period can cause a carrier not to renew your plan. 

The number of claims considered excessive varies by company, but be aware that filing more than one in a policy term will likely influence your coverage. And, try not to file too many claims for minor damage.

Companies have certain timelines they need to follow when responding to claims. They will also outline steps you should take during the claims process in your policy to help the process go as smoothly as possible.

Homeowners insurance isn’t required by law in Indiana. But, a mortgage lender will require you to have a policy for the life of your mortgage loan. Lenders mandate homeowners insurance to protect their investment in your property. Since insurance is required for some homeowners, those who struggle to qualify for a policy may find one through the state’s Fair Access to Insurance Requirements (FAIR) plans. 

Homeowners may struggle to find Indiana house insurance on the standard market for a number of reasons, like frequent claims, having an older home, or having a specific dog breed, among other things. These homeowners can turn to a FAIR plan to get the coverage they need. However, FAIR plans are often costly and should only be used as a last resort. 

Getting Indiana homeowners insurance quotes is easy with Clovered. You can get a quote entirely online and compare your options from several providers.

If you have questions or need any help along the way, our team of licensed agents would love to assist you. We’re available by phone at 833-255-4117 during business hours, or you can email us at agent@clovered.com.