Homeowners insurance is essential for protecting your biggest investment — your home. Indiana insurance policies cost an average of $187 per month, with Nationwide, Travelers, and Safeco providing some of the best coverage options.
However, standard home insurance may not be enough to protect against natural disasters in Indiana. The state is prone to tornadoes and flooding, and while many home insurance policies cover tornado damage, most don’t cover flood damage. You’ll likely need to buy additional coverage for flood damage protection.
Table of contents
- Best home insurance companies in Indiana
- How much is homeowners insurance in Indiana?
- What are the cheapest home insurance companies in Indiana?
- How much homeowners insurance do you need in Indiana?
- What are some of the biggest risks when owning a home in Indiana?
- How can you save money on homeowners insurance in Indiana?
- Average home replacement cost in Indiana
- Indiana home insurance FAQs
Best home insurance companies in Indiana
Best large insurer: Nationwide
Nationwide is a leading provider of home insurance in Indiana. Its J.D. Power Overall Customer Satisfaction Index score is 816 out of 1,000 points, which is slightly below average but still higher than many other large home insurance companies. Nationwide also has an A+ rating from A.M. Best and offers a range of coverage options and discounts.
Nationwide home insurance policies cost an average of $137 per month in Indiana. How much you’ll pay can vary depending on the coverage you need, your location, and the age of your home.
Some of the cheapest premiums in Indiana
Provides flood insurance as optional coverage
Covers the total cost of replacing and repairing belongings
Limited customer service hours
Below-average customer satisfaction score
Separate deductible applies to flood insurance claims
Best insurer for cheap rates: Stillwater
Stillwater has the cheapest home insurance in Indiana, with an average monthly rate of $102 — much lower than the state average of $186 per month. The insurer has a wide range of discounts for policyholders and a “choose your deductible” option to make coverage even more affordable.
Offers the cheapest average rates in Indiana
Many discounts are available
A- rating from A.M. Best
Newer company with fewer than 30 years of experience
Not rated by J.D. Power for customer satisfaction
Financial strength rating isn’t as strong as other companies
Best insurer for tornado coverage: Safeco
Tornadoes are one of the most common natural disasters Hoosiers face. Many insurance policies offer tornado coverage, but Safeco can dispatch mobile units staffed with catastrophe claims specialists to handle home claims in the hardest-hit areas. With an overall J.D. Power score of 809 out of 1,000, it lags slightly behind the industry average of 819.
Safeco policies cost an average of $554 per month in Indiana, but prices can vary depending on your circumstances. Getting a quote is the best way to find out how much you might pay.
Offers answers to Safeco questions through Amazon Alexa’s Insurance Advisor skill
Access to prequalified experts with a material and labor warranty
Pay one deductible if a loss impacts your home and car when Safeco insures both
Doesn’t underwrite its own policies
Few discounts available
Highest premiums in Insurify’s insurance study
Best insurer for high-value homes: Travelers
Travelers is a competitive choice for high-value home insurance, despite receiving a below-average J.D. Power score of 794 out of 1,000. It offers expanded coverage options, including replacement cost coverage starting at $1 million. It also has add-ons, like tree and shrub coverage and identity theft protection.
Homeowners pay an average of $137 monthly for home insurance with Travelers. However, your premiums may be higher, particularly if you have a high-value home with unique coverage requirements.
Expanded replacement cost covers up to 125% of the dwelling limit
Jewelry and valuable items, umbrella, and boat and yacht insurance available
Online account lets you file and track your claim’s progress
Below-average J.D. Power score
Few discounts available
Must talk to an agent to finish a quote
Best regional insurance company: Erie Insurance
Erie specializes in insurance coverage for the eastern and central U.S., including Indiana. With a customer satisfaction score of 827 out of 1,000 in J.D. Power’s 2022 U.S. Home Insurance Study, Erie stands out as the best regional insurer for homeowners in Indiana.
High customer satisfaction rating among homeowners
Strong financial strength rating from A.M. Best
Partners with the National Flood Insurance Program for flood coverage
Must go through an agent to get a quote or buy a policy
No online claim-filing option — must contact Erie or your local agent
Only offers three discounts
Read More: 5 Best Home Insurance Companies
Insurify’s team of data scientists analyze millions of home insurance quotes and weigh publicly available reviews, claim payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.
How much is homeowners insurance in Indiana?
Home insurance policies cost an average of $187 per month in Indiana. However, premiums can be as complex as home insurance policies when it comes to pricing. Several factors can affect the cost of your home insurance premiums, such as the location of your home and the type of coverage you choose.
How your policy choices affect home insurance rates in Indiana
Your policy form
Home insurance policies come in different forms, or types, and each policy type covers different perils. Most homeowners go with a special form policy type, also known as an HO-3 policy, according to the National Association of Insurance Commissioners (NAIC).
Your policy form determines how much protection you have against different risks. A policy with more named perils will cost more because it offers broader coverage. Take the time to thoroughly read and understand what your policy covers to avoid unexpected surprises when filing a claim.
Learn More: What Are Perils in Insurance?
Your coverage level
Your coverage level directly affects your premiums. As you might expect, the higher your coverage levels, the more expensive your premiums will be. For example, Indiana homeowners with $250,000 in dwelling coverage pay an average of $1,290 per year for insurance, while those with $500,000 in dwelling coverage pay an average of $2,210 per year.
Your homeowners deductible is the portion of the claim you’re responsible for paying out of your own pocket when filing a claim. Higher deductibles are available, but $500 is the most common, according to the Indiana Department of Insurance. If you choose a lower deductible, you’ll pay less when filing a claim, but your premiums will likely be more expensive.
How location affects home insurance rates in Indiana
Just like the world of real estate, home insurance is all about location. A home’s location and surroundings heavily affect its value. You might expect rates to vary from one state to the next, but even different ZIP codes within a state can cause premiums to fluctuate.
Your home’s location determines its exposure to weather events, vandalism, crime, and other unique factors. Even how close you are to a fire station can lead to higher or lower premiums. For example, you might pay more for home insurance in southwestern Indiana because you’re closer to Tornado Alley, increasing the likelihood of damage to your home.
|Average Monthly Quote
What are the cheapest home insurance companies in Indiana?
Consider starting your search for cheap home insurance with Stillwater, Grange, and Acuity. These three providers are the cheapest insurers in the Hoosier State, with rates up to 45% lower than the state average cost of $187. Your insurance quote may be higher or lower than the average, depending on your coverage needs.
|Average Monthly Quote
|Midvale Home & Auto
How much homeowners insurance do you need in Indiana?
You’ll need to consider several factors when choosing your home insurance. Start by calculating the value of your home — your home’s value is the basis of your coverage. Your policy should cover at least 80% of your home’s replacement value, according to the Indiana Department of Insurance.
Next, evaluate your home’s location and any optional coverages you might need to protect against specific risks a standard policy may not cover. Insurance needs vary from household to household, and no single policy will work for everyone. Compare multiple home insurance quotes before buying a policy to make sure it meets your needs.
Learn More: How Much Homeowners Insurance Do You Need?
What home insurance coverages should you buy in Indiana?
A standard Indiana home insurance policy typically covers the following components, according to the NAIC:
Dwelling coverage: This covers the structure of your home, including permanent fixtures and personal belongings inside.
Other structures coverage: This covers structures on your property that aren’t attached to the main building, like detached garages, sheds, and fences.
Personal property coverage: This covers personal items in your home, such as furniture, electronics, and clothing. It also pays to replace items you lose due to certain named perils.
Loss of use coverage: This covers additional living expenses when your home isn’t habitable due to a covered loss. This may include hotel stays and extra food expenses.
Personal liability coverage: This covers losses due to property damage or bodily injury that you or a household member cause to another person. It also covers legal fees if someone sues you.
Medical payments coverage: This covers medical expenses related to injuries that occur on your property, regardless of fault. Your policy may pay medical bills, rehabilitation costs, and funeral expenses.
What optional home insurance coverages should you buy in Indiana?
Your policy may not include these coverages, but consider adding them to increase your protection:
Guaranteed replacement cost coverage: This coverage pays to repair, rebuild, or replace your home or personal belongings after damage or destruction. It doesn’t include depreciation when calculating your claim payout.
Flood insurance: This covers the cost of repairing and replacing your home and personal items after flooding. It may also cover additional expenses if you can’t live in your home during repairs. People who live in high-risk areas usually pay around $700 per year in premiums.
Earthquake insurance: This coverage is typically sold as a separate policy or add-on and protects your property against damage from earthquakes and other earth movements. It typically covers your home’s structure and other structures on your property, as well as personal property.
Sewer backup coverage: This coverage pays for repairs due to water damage from septic tank backups, overflows, and burst pipes. Some homeowners policies may include this coverage, but others will require you to purchase it separately.
Personal umbrella liability: If your existing insurance policies aren’t enough to protect you financially, a separate umbrella policy can increase your coverage. It covers a wide range of potential liability claims and offers greater financial protection.
Farm coverage: This coverage provides protection for farm operations that standard home insurance typically excludes. It offers coverage that mirrors home insurance, but policies cater specifically to farm owners.
What are some of the biggest risks when owning a home in Indiana?
“Indiana is prone to severe weather, including thunderstorms, tornadoes, and hail, which can cause significant damage to homes,” says Corey Tyner, a real estate investor and the founder of Buy Yo Dirt. “Home insurance policies typically cover damage from these events, but it is important to review your policy to understand what is and is not covered.”
Tornadoes: Most homeowners insurance policies include tornado damage as part of their standard coverage. Tornado coverage can help reduce the costs of repairing or replacing your home after a storm.
Flooding: Hoosiers regularly experience floods, and most standard home insurance policies don’t include flood damage. Ask your insurance agent about flood coverage, or purchase coverage from the National Flood Insurance Program.
Earthquakes: You’ll likely need to buy an endorsement or separate policy for earthquake coverage. Ask your insurance company about coverage. Indiana has moderate to high earthquake risk, depending on where you live.
How can you save money on homeowners insurance in Indiana?
You can save money on homeowners insurance in Indiana in various ways, including:
Bundle home and auto insurance
Bundling your home and auto insurance can be a great way to save money on your insurance. Not only does it simplify your coverage by combining two policies under one provider, but it can also provide a significant discount on your premiums.
Increase your deductible
Choosing a higher deductible can be a smart way to save money on your premiums. You’ll pay more out of pocket in the event of a claim, but your monthly payment will usually be less. It’s a great way to save on your insurance costs while maintaining the coverage you need.
Install safety features
Many insurance companies offer discounts for adding safety features to your home. Installing smoke detectors, security alarms, and deadbolt locks can make your home more secure and lead to lower home insurance premiums, making it a win-win situation.
Insurance is highly competitive, so it’s worth comparing quotes from multiple companies. Comparison shopping lets you review coverage options and costs to get the protection you need and the savings you deserve.
Average home replacement cost in Indiana
Imagine being able to rebuild your home after a loss using the same materials and techniques as before — that’s what replacement cost means for your home insurance. Below are the average costs of fully replacing a home in various Indiana cities.
|Average Home Value
Indiana home insurance FAQs
Home insurance comes with many questions. Here are answers to some of the most frequently asked questions about home insurance in Indiana.
Homeowners pay an average of $187 per month for home insurance in Indiana. But a standard policy may not have enough protection for your needs. Additional coverage, such as water backup or farm operations coverage, can increase your policy cost. You may also need to purchase a separate flood insurance policy, depending on where you live and your risk level.
At $187 per month, Indiana home insurance is less expensive than the national average of $205. Indiana has severe weather risks, but large-scale natural disasters are relatively infrequent.
Homeowners insurance includes dwelling, other structures, personal property, and liability protection. Policies vary but usually offer three levels of coverage: actual cash value (subtracts depreciation), replacement cost (covers repairs and replacements in full), and extended or guaranteed replacement cost (covers repairs and replacements even if they exceed your coverage limit).
Even though it isn’t a legal requirement, your mortgage company may require you to buy home insurance coverage as a condition of your loan. Home insurance covers damage to your home and personal property and helps you avoid paying for costly repairs or replacements out of pocket. Policies also cover liability if someone is injured on your property.
State Farm has a significant lead as the largest home insurance provider in Indiana, serving 11.28% of the market. The next two largest insurers, Progressive and Liberty Mutual, make up 11.36% of the market combined, making it clear that State Farm is the dominant home insurance company in Indiana.
- Indiana University. "Flooding in Indiana: Not "If", but "When"." Accessed March 8, 2023
- J.D. Power. "2022 U.S. Home Insurance Study." Accessed March 8, 2023
- A.M. Best. "Home Insurance." Accessed March 8, 2023
- National Association of Insurance Commissioners. "A Consumer's Guide to Home Insurance." Accessed March 8, 2023
- Indiana Department of Insurance. "Property Insurance." Accessed March 8, 2023
- National Association of Insurance Commissioners. "Homeowners Insurance." Accessed March 8, 2023
- Central U.S. Earthquake Consortium. "Central U.S. Earthquake Guide." Accessed March 8, 2023
- National Association of Insurance Commissioners. "Property and Casualty Insurance Industry 2021 Market Share Report." Accessed March 8, 2023
Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.