Finding affordable home insurance is a priority for many homeowners and the best way to find a good policy at a reasonable cost is by comparison shopping. We evaluated average rates for large home insurance companies in Indiana to help you find the best policy for you.
Cheap Home Insurance in Indiana Cost Comparison
It’s wise to shop around if you’re on the hunt for cheap homeowners insurance. As you can see in the table above, home insurance costs can vary significantly from one insurance company to the next. You won’t know how much you can save without comparison shopping.
But you don’t want to base your decision on price alone. The best home insurance company for you will also offer coverage types and discounts that match your homeowner profile.
| Company | Average cost per year in Indiana |
|---|---|
|
Indiana Farmers Mutual
|
$975
|
|
Cincinnati Financial
|
$1,170
|
|
$1,196
|
|
|
$1,200
|
|
|
$1,229
|
|
|
Grange Mutual
|
$1,297
|
|
$1,396
|
|
|
$1,417
|
|
|
$1,568
|
|
|
$1,868
|
|
|
$1,873
|
|
|
Indiana Farm Bureau
|
$2,229
|
|
$2,299
|
Indiana Homeowners Insurance Cost Factors
The cost for home insurance in Indiana will depend on several factors, such as:
- The materials your home is made of, such as stone and wood
- The cost to rebuild your home if it was destroyed
- The age of your home
- The proximity of your home to a fire station and fire hydrant
- The claims history in your area
- Your personal claims history
- Your credit
- The amount of coverage and policy limits you select
- Your deductible amount
What Does Indiana Homeowners Insurance Cover?
A standard home insurance policy (called an HO-3) covers your home for any problem that is not excluded in your policy. Common exclusions include earthquakes, floods, sinkholes, nuclear hazard, power failure, wear and tear, war and insect and vermin infestations.
Your personal belongings are covered for specific “perils” in a standard home insurance policy. For example, theft, vandalism, fire and tornadoes are just some of the problems covered by home insurance.
Before you begin to compare home insurance quotes, be sure you understand how the types of coverage in a homeowners policy work together to protect you.
A standard home insurance policy pays out up to the limits in your policy and can be broken down into these main coverage types:
- Dwelling: This pays to repair or rebuild your home if it’s damaged by a problem covered by your policy. This coverage also includes attached structures, like a porch or garage.
- Other structures: This pays to repair or replace structures that are not attached to your house, like a gazebo, barn or shed.
- Personal property: This covers your personal belongings if they are damaged by a problem covered by your policy, like theft or fire. This includes items like your furniture, rugs, jewelry, clothing and other items.
- Liability: This pays for property damage and injuries you accidentally cause to others. For example, if your child knocks a baseball through your neighbor’s window, your liability insurance can pay to replace the window. Liability also pays for legal defense and settlements if you are sued because of an accident.
- Medical payment to others: This covers smaller medical claims made by people who do not live in your household, no matter who is at fault for the injury. For example, if a guest slips on your sidewalk, medical payments could pay for a trip to urgent care. Coverage amounts are usually small, such as $1,000.
- Additional living expenses: If you cannot live in your home because of a problem covered by your policy, such as a tornado, additional living expenses pays for costs such as hotel bills, restaurant meals and other services, like laundry or pet boarding.
Compare Home Insurance Quotes
1
Lemonade
Excellent
Average
2
Erie
Very good
Low
3
Chubb
OK
Very low
What’s Not Covered by Indiana Homeowners Insurance?
The types of problems that are commonly excluded from coverage in a standard home insurance policy include floods, earthquakes, sinkholes, war, power failure, wear and tear, vermin and insect infestations, nuclear hazard and intentional loss.
It’s a good idea to read your policy closely to understand what’s not covered.
Flood Insurance in Indiana
Floods aren’t covered by a standard home insurance policy. If your property is at risk for flooding, you’ll want to consider buying a flood insurance policy.
Even if a flood is not declared a federal disaster, floods can still be destructive and costly. Government financial assistance after a flood can be limited. It’s best to have your own flood insurance to rely on. Most people who purchase flood insurance get it through the National Flood Insurance Program (NFIP), a federal program. You can also buy flood insurance through the private market.
FEMA’s Individuals and Households Program (IHP) can provide financial and direct assistance after a major disaster or emergency, if you qualify. This program helps people find housing after a problem directly caused by a disaster and that’s not covered by insurance or other sources.
Earthquake Insurance in Indiana
Earthquakes may be a distant thought for many Hoosiers, but Indiana is near the Madrid seismic zone in New Madrid, Missouri. While the fault zone hasn’t produced a major earthquake since 1812, Southwestern Indiana would be most vulnerable should a big one occur.
If you want coverage for earthquake damage, you’ll need to buy a separate earthquake insurance policy. A standard home insurance policy does not cover earthquakes.
Earthquake insurance typically covers:
- Your home
- Other structures
- Personal property
- Additional living expenses
Your earthquake insurance policy may have a separate deductible from your home insurance, which could be between 10% to 25% of your dwelling’s policy limit.
Tips for Buying Indiana Homeowners Insurance
Whether you are a first time home buyer or you simply want to switch to a new home insurance company, your goal is to find a good price without sacrificing coverage. Here are some tips for buying a home insurance policy:
- Rebuilding costs are key. Ask a trusted contractor or your insurance company what the cost would be to rebuild your home with equitable materials, based on the labor costs in your area. This estimate will inform how much you’ll need for dwelling coverage.
- Evaluate how much liability coverage you need. A good rule of thumb is to buy enough liability insurance to cover your assets, such as your savings account.
- Buy more coverage for valuable items. A standard home insurance policy might have sub-limits on valuable items like jewelry or musical instruments. You can schedule personal property so your pricey possessions are insured for the right amount.
- Upgrade to replacement cost coverage. This will pay the amount you need to replace your damaged items with new items. Actual cash value will only pay the depreciated amount.
- Close coverage gaps. You might need to buy additional coverage types to address specific concerns with your home, such as coverage for water backups or higher limits for landscaping.
- Research financial ratings. Check your prospective insurer’s financial strength ratings from companies like Standard & Poor’s or A.M. Best. Some banks may not finance your home if your insurer doesn’t have at least an “A” financial strength rating.
- Compare quotes from multiple insurers. You can find free homeowners insurance quotes online or by working with an independent insurance agent. Shopping around is the best way to save.
- Ask for discounts. You may qualify for discounts such as home security features, new home and bundling your auto with your home insurance.
