Home Insurance in Indiana


UPDATED: NOV 2020 | 1 MIN READ

Indiana is one of the cheaper states for homeowners insurance premiums, sometimes as low as three figures annually. Unlike many other states, the worst environmental perils (wind and snow) are frequently covered by affordable standard homeowners insurance. And the NFIP has easily accessible policies for homeowners who are worried about flooding. All in all, Indiana isn’t a bad state when it comes to homeowners insurance. 

  • Fun fact – Indiana is the “Covered Bridge Capital of the World”, with more than 31 covered bridges located inside of its 450 square miles.

Average Rates in Indiana

Average annual home insurance premiums for Indiana homeowners sit at an even $1,000 per year. When you compare that to the annual average for homeowners across the country, that’s over $200 less per year – and thousands of dollars less over time. Indiana falls at #33 on the list if you rank all 50 states in order from most to least expensive. New Mexico and California are a little bit pricier, whereas Virginia and New Hampshire are slightly cheaper.

But what about renters in the state of Indiana? Well, the national average for annual renter’s insurance premiums is $180; Indiana renters, however, are only paying $174 per year. So if you can’t afford a home right now, or the hassle of homeownership doesn’t appeal to you, you can at least take solace in knowing that it won’t be quite so expensive to insure your belongings while you are renting. 

Indiana Legal Insurance Requirements

In all but one state, auto insurance is legally required if you are going to drive on the road. Similarly, many landlords require you to purchase renter’s insurance before they will let you sign a lease. But did you know that there is no legal requirement for homeowners insurance? There will likely be a requirement from your mortgage lender if you are still paying off your home. But that is the extent of it. There are no state or federal laws which mandate that you must purchase homeowners insurance if your property is paid off and you don’t owe anyone money. Most homeowners, however, still choose to purchase this type of coverage in order to protect themselves financially. 

Common Risk Factors in Indiana

Winter snow storms, spring thunderstorms, and the occasional flood are all headaches that Indiana homeowners have to worry about. But if you get yourself the right type of insurance coverage, you won’t have to worry so much about them. First, two bits of good news: wind damage from thunderstorms and tornadoes is almost always universally covered by standard homeowners insurance. But you should contact your home insurance agent and talk about it with them personally to make sure your specific policy covers it. This is also true for damage caused by heavy snowfall. What homeowners insurance almost never covers, unfortunately, is flood damage from overflowing rivers or heavy rains. If you look hard enough, you may be able to find a private insurance company willing to offer you flood insurance at a reasonable rate. But if you can’t find it from a private company, you can always consult FEMA in order to join the National Flood Insurance Program for adequate flood coverage. 

Alternatively, if you’re having trouble finding homeowners insurance coverage, you can always consult the Indiana FAIR plan which is currently being managed by the Indiana Property Insurance Underwriting Association. Fair warning, though: these plans are far from cheap. They are designed to be last resort plans, and because of your high risk, your insurance provider will quote you a higher premium in order to offset their financial risk. For some Indiana homeowners, however, this is their only option. But we strongly suggest you shop around and at least try to find standard insurance before you resort to that. 

Insurance Demographics/Statistics in Indiana

Weather related incidents are probably your biggest risk as a homeowner in Indiana – and, therefore, going to have the biggest impact on your annual premium. But did you know there are other factors involved? We’re going to discuss the next four biggest ones below. Those are, in no particular order: the value of your home, rates of property crime in your area, your income level, and how much education you have. 

  • Home Value: The standard rule of thumb when it comes to homeowners insurance is to insure your property for at least 80% of its replacement cost value – not the full value of your home and the land it sits on. Given that average home values in Indiana are nearly $100,000 cheaper than the national average at $158,690, that means you get to purchase less coverage. And the less coverage you have to purchase, the more money you can save on your premiums. 
  • Crime Rates: How likely are you, as a homeowner, to become a victim of property crime in Indiana? According to statistical data, there is a 1 in 46 chance of that happening to you. This is good news for you as a homeowner, because the national average is 1 in 43. So because it’s less likely, the odds are good your homeowners insurance provider will charge you less for your premiums since you are a less risky investment. 
  • Income: One thing that may be working against you, however, is the fact that Indiana residents make less on average than the typical American. Workers in Indiana are typically bringing in around $55,746 per year, which is over $6,000 less than the national average. Making less money means that you might struggle more to pay your homeowners insurance premiums on time whenever they’re due. Homeowners insurance companies don’t like this, and often raise their prices in order to offset the financial risk that you might pay late or not pay it all. 
  • Education: Another thing homeowners insurance providers like to offer discounts for is having a higher education. Unfortunately, that’s less likely in Indiana than it is in other parts of the nation. Only 26% of Indiana residents have a bachelor’s degree or higher – compared to 32% of the US as a whole. It might seem unfair, but insurance companies see people with a higher education as more likely to be financially responsible, and therefore less risky. Insurance companies reward lower-risk customers with better rates and, for better or worse, charge higher rates to people who pose a greater risk. 

Where To Purchase Home Insurance in Indiana

We personally recommend shopping around online if you’re looking for a better deal on your current homeowners insurance policy. And we recommend doing so every year when your policy is coming up for renewal. We understand that there are rewards and benefits associated with staying loyal to a single company for many years – however, the insurance industry is an ever-changing landscape, and you could be overpaying by hundreds if not thousands of dollars by not at least shopping around on a regular basis.

Only 44% of homeowners actually bother to shop around on an annual basis to see if a better deal is available for them when their policy is set to expire. Of those, a meager 17% bother to comparison-shop online! But shopping online really is the best option, because it gives you access to the greatest number of quotes from providers in your area in the shortest, most efficient amount of time. If you shop around with us today, we can start saving you money in no time!

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