Best and Cheapest Homeowners Insurance in Indianapolis, Indiana (2021)

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Indianapolis is the capital city of the Hoosier State and has the largest population of all Indiana cities. If you’ve decided to make Indianapolis your home, you’ve made a wise decision. The city enjoys a low unemployment rate of only 4.2 percent and has a growing economy. 

Indianapolis may be best known to racing enthusiasts as the home of the Indianapolis 500. There are plenty of activities to keep everyone in the family entertained, including museums and parks. The Children’s Museum of Indianapolis is one of the largest children’s museums in the United States.

Just as Indianapolis residents know they have chosen a great place to live and raise a family, they also know that risks, like tornadoes with damaging winds and strong seasonal thunderstorms that can bring flooding, threaten their homes and property.

The best way to protect your Indianapolis home and property from damage is to purchase homeowners insurance. Use Insurify to compare homeowners insurance companies like Allstate, State Farm, Erie, USAA, and more. 

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How to Find Cheap Home Insurance in Indianapolis

Buying a home in Indianapolis is a great investment in your family’s future. In fact, it may be one of the largest financial investments of your lifetime. With investment, inevitably, comes risk. However, there are steps homeowners can take to minimize risk and protect their investment. 

The first step to protecting your property is homeowners insurance. Though not required by law, home insurance provides financial liability for your property and belongings from natural disasters and theft. Different coverage levels are available for different property types, locations, and other factors. 

Keep reading for a full guide on Indianapolis home insurance. 

MORE ON INDIANA HOME INSURANCE
For general information on Indiana home insurance, check our state guide to best Indiana homeowners insurance.

 

Cheapest Home Insurance in Indianapolis by Company

Homeowners insurance rates aren’t always designed with savings in mind. That’s where Insurify comes in.

As of 2021, the average home insurance premium in the Indianapolis area costs $1,547 annually, and the median home value is $170,970. 

The cost of your Indianapolis home insurance policy will vary by insurance company and the coverage options you choose. You can start your search here with this handy table comparing home insurance companies by cost.

Average Home Cost in Indianapolis Average Annual Insurance Premium in Indianapolis
$170,970 $1,547

Cheapest ZIP Codes in Indianapolis for Home Insurance

No matter where you live in IndianaBloomington, Columbus, Fort Wayne, or Indianapolis, your cost for home insurance can vary based on your ZIP code.

Like property costs, home insurance varies in price from city to city. Pricing is determined by ZIP code–specific variables, such as the volume of claims filed nearby, crime rates, and property costs, and risk variables, such as natural disaster frequency. Even your specific neighborhood may determine if you pay more or less on your annual premiums. 

Rates in Indianapolis can be relatively high or low compared to the national average; it all depends on which area you live in. Here are the most and least expensive ZIP codes in Indianapolis for home insurance.

Most Expensive Real Estate in Indianapolis Cheapest Real Estate in Indianapolis
North Central $327,444 West Indianapolis $75,342
Downtown $324,435 Christian Park $86,213
Allisonville $323,503 Mars Hills $108,478
Home value data from zillow.com 

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Home Insurance Coverage Types in Indianapolis

There are several types of home insurance. Specific terms of insurance policies may vary by city, but in general, the standard policy types are as follows:

HO-1

Basic

  • The simplest and least comprehensive type of homeowners insurance
  • Provides coverage for a handful of potential problems, including
    • Dwelling coverage for damages from some natural disasters (storms, fires, wind, lightning, volcanic eruption), 
    • explosions, 
    • theft, 
    • damage from vehicles, 
    • or civil commotion. 
HO-2

Broad Form

  • Broad form homeowners insurance policies include all basic form coverage, plus protection from:
    • falling objects, 
    • damage from the weight of ice, snow, or sleet, 
    • freezing of household systems including HVAC and pipes, 
    • sudden and accidental damage to pipes and other household systems from artificially generated electrical current, 
    • accidental discharge or overflow of water or steam,
    • sudden and accidental damage. 
  • HO-2 policies typically cover both dwelling protection and personal property.
  • In some cases, broad form coverage may also include liability coverage. However, it still only covers the specific damages listed in the policy.
HO-3

Special Form

  • The most common form of homeowners insurance is known as a “special form” policy.
  • While HO-1 and HO-2 policies are “named peril” policies (meaning they only cover dangers that are specifically listed in the policy), HO-3 policies are “open peril” policies meaning they’ll cover all dangers except those specifically excluded in the policy documents.
HO-4

Tenant’s Form

  • HO-4 policies, also known as renters insurance, are for people who lease rather than own their homes. 
  • Tenant’s form policies typically cover all the same dangers as HO-2 policies. 
  • These policies include personal property coverage and liability coverage but don’t cover the physical structure of the house. 
  • Some HO-4 policies may also include loss of use coverage for the tenants.
HO-5

Comprehensive

  • Comprehensive form policies are usually the broadest and provide the highest level of coverage; not surprisingly, they also tend to be the most expensive type of homeowners insurance policies.
  • The biggest difference between HO-3 and HO-5 policies is that most HO-3 policies are “actual cash value” policies, whereas typically HO-5 policies are “replacement cost value” policies.
  • An actual cash value policy will only reimburse you for the actual value of a damaged or destroyed item, while a replacement cost value policy will reimburse you for however much it would cost to completely replace or repair the damaged or destroyed item (up to the coverage limits on the policy). 
  • HO-5 policies also provide personal property coverage against a wider range of dangers than the typical HO-3 policy. Many HO-5 policies also have extra coverage for high-value personal property, such as jewelry and artwork.
HO-6Condo Form
  • Not surprisingly, condo form insurance is for condominium owners. HO-6 policies generally protect against the same types of dangers as HO-3 policies. 
  • They provide dwelling protection coverage with a twist: HO-6 policies cover the walls, floors, and ceiling of the condo unit but not the rest of the building. 
  • These policies also include personal property and liability coverage and may include loss of use coverage.
HO-7Mobile Home Form
  • If you own a mobile home or manufactured home, you likely have an HO-7 policy. 
  • Mobile home form policies are typically identical to HO-3 policies, except they’re designed specifically for mobile and manufactured homes.
  • Like HO-3 policies, they provide dwelling protection coverage, other structures coverage, personal property coverage, liability coverage, and possibly loss of use coverage as well. 
  • HO-7 policies generally only protect the home when it’s stationary; if you plan to move your mobile or manufactured home, you’ll need to get a special policy to cover it while it’s in transit.
HO-8

Older Home

  • Older homes have generally been built to less stringent code standards than recently built homes, and so insurers have designed a specialized type of homeowners insurance policy for them. 
  • HO-8 policies often only cover the basic perils listed in HO-1 policies and generally apply to homes that are registered landmarks or otherwise deemed historic homes. 
  • Owners of registered landmarks are typically forbidden from making the updates to HVAC, electrical, and other parts of the home that would enable them to qualify for a standard HO-3 policy, so an HO-8 policy is often the only option for them.

Purchasing Indianapolis Flood Insurance

Indianapolis is prone to heavy thunderstorms that can bring torrential rains. As floodwater accumulates in neighborhoods, it can enter homes and cause heavy damage. The state is covered in 24 percent wetlands, making it susceptible to flooding. In 2008, 82 Indiana counties were affected by a devastating flood after nearly a foot of rain fell in only seven hours. Damages to homes and property totaled well over $500 million.

Your homeowners policy does not cover flood damage. To be protected, you will need to purchase a flood insurance policy from the National Flood Insurance Program (NFIP). If in doubt about where to find a policy, you can visit the NFIP website to find an approved insurance provider

Additional Living Expenses Coverage

If you have suffered home damage due to fire, theft, storms, or some other type of event, you may feel overwhelmed and not know what to do next. After you have filed your home insurance claim, you may need to temporarily move out of your home so covered repairs can begin.

Your homeowners insurance policy covers additional living expenses incurred if you have to temporarily move out of your home. Additional living expenses coverage helps pay for things like food, gas, and temporary living accommodations.

There is a limit to how much your insurance company will pay for additional living expenses. The amount of coverage you have is usually based on a certain percentage of your home’s coverage limit. If in doubt, check with your insurance agent for a full review of your home insurance coverage

Finding your ideal home in Indianapolis is a dream come true. Don’t let insuring it add to your stress!

Frequently Asked Questions - Indianapolis Homeowners Insurance

What home insurance deductible should I choose?

It pays to be a savvy shopper and try to find as many ways as possible to lower your home insurance costs. It might seem like a good idea to carry a higher deductible on home insurance, but you should give some thought to this before changing anything on your policy. A higher deductible will indeed lower your premium, but you will also have to come up with more money out of pocket if you file a claim. A better way to save on home insurance is by using Insurify to compare insurance providers and find companies who offer attractive discounts, such as bundling home and auto insurance, to save money.

Does my Indiana home insurance cover vandalism?

According to recent crime index statistics, Indianapolis has a 38 percent property crime index, meaning your chance of being a victim of property crimes such as vandalism is 1 in 26. Vandalism damage can take many forms, but some of the most common types of vandalism damage are lawn/tree damage, broken windows, graffiti/spray painting, tire slashing, arson, and sign removal. You can’t always prevent vandalism, but you can protect your home and property through homeowners insurance. Homeowners insurance covers damage from vandalism with the exception of vacant homes. If your home is vacant, you’ll need to talk with your agent about coverage options. In some cases, you can purchase a separate policy to cover a vacant home.

Does my homeowners policy cover my expensive personal items?

When you purchase homeowners insurance, you go into it thinking everything you own is covered. The truth is that in some cases, you may not have enough coverage. Very expensive personal items, such as jewelry, electronics, art, and coin collections, are only covered up to a specific dollar amount by a standard homeowners insurance policy. Your limit for personal property coverage will be stated on your policy’s declarations page. In most cases, it is somewhere between 20 to 50 percent of the policy limit for the structure of your home. Individual items such as jewelry may be covered for as little as $1,000. Luckily, you can add coverage for these expensive personal items through a scheduled personal property endorsement. This will protect your items from losses you may suffer, such as a fire or theft.

Conclusion: How to Find the Cheapest Home Insurance in Indianapolis

Indianapolis residents know the value of protecting their homes and properties against all the risks that inevitably come with homeownership. You can cross the finish line and protect your home and valuables by using Insurify to find cheap home insurance rates!

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Updated February 19, 2021

Jackie Cohen received her B.A. in Global Media and Public Relations from the University of Massachusetts, Amherst. Currently based in Boston, MA, she works as a content writer for Insurify. An avid globe-trotter and foodie, Jackie spends her spare time adventuring far and near.