Best Homeowners Insurance in Indiana

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Contributor, Benzinga
June 19, 2019

Indiana is home to 6.5 million people and is the sixteenth most populous state in the U.S. Unlike many other states, homeowners insurance rates vary in Indiana from one city to the next. The difference can be as much as 50 percent in bordering towns. This means that homeowners looking to purchase a policy will need to do their research to ensure that they get the best deal for the coverage that they need.

Quick Look: Best Homeowners Insurance Indiana

  1. Allstate
  2. Liberty Mutual
  3. State Farm
  4. American Family
  5. Indiana Farm Bureau

The residents of Indiana must consider the natural threats to their property such as inclement weather when taking out a policy. The Hoosier State is known for being powerful tornadoes, heavy rainstorms and plenty of snow in the winter.

While there may be some home insurance policies out there that will provide coverage for damage caused by natural disasters, most companies will require you to take out additional coverage, such as flood insurance or tornado insurance to guarantee protection of your property.

Average Annual Premium in Indiana

The average yearly premium for a homeowners insurance policy in Indiana is $959, 13 percent less than the average national premium.

The rates for home insurance policies continue to rise across the nation and have gone up as much as 50 percent in the past decade. Some of the factors that cause homeowners’ insurance rates to go up include:

  • Damage caused by hail storms and wind
  • Water damage
  • Theft
  • Fire
  • Lightning
  • Falling debris such as dead tree branches

If you are searching for a new policy for your Indiana home or plan to relocate to the area, it’s best to research the different homeowners insurance rates to find the best option for your family and your budget.

Finding the Best Premium for Your Home

There are a few things to consider when it comes to purchasing a new homeowners’ insurance policy in the state of Indiana.

The cost of monthly premiums varies across the state; therefore, you can’t depend on a single estimate for home insurance in Indiana as a guide for the rate you will pay. It’s very important to do your own research to find the right policy for your home.

You will also need to consider the additional policy options for personal property or flood insurance to guarantee that you are prepared for any damaging situation that comes your way.

Types of Homeowners Insurance

There are various types of homeowners insurance plans available. Many people believe that their basic dwelling protection protects their home against all hazards, but that is not always the case. Most standard home insurance policies do not provide coverage for additional structures, irreplaceable personal property or liability claims.

Make sure that you have all the coverage that you need when you take out a new policy by having your agent explain what your current insurance plan covers and what it doesn’t. Always ask questions if you are unsure about your policy so that you know exactly what you are paying for.

Dwelling Protection.  Also known as standard protection, this is your basic homeowners insurance plan that everyone who takes out a policy has. It provides coverage for the structure that you live in.

The exact type of protection provided to you will depend on the policies offered by the company you have insurance with. In most cases, dwelling insurance covers damage to your home caused by fire, wind, or debris. It will also cover the loss of items in the home due to theft.

Additional Structure Protection.  This protection pays for damage or loss to additional buildings on your property and the contents inside them. This can include a detached garage, a storage shed, tool or garden shed. It may also cover the cost of repairing a fence or deck due to damage caused by storms or accidents.

Personal Property Protection. Your dwelling protection will cover the cost of most of the items in your home if they become damaged or stolen. Personal property protection pays for the loss of items that are more valuable or irreplaceable.

These items can include collectibles, antiques and jewelry. If you own any of these items, you may want to take out this additional insurance policy along with your basic home insurance plan.

Liability Coverage. This is coverage that pays for the medical care or legal costs if someone who doesn’t live with you becomes injured on your property.

This could be due to a slick walkway or porch, debris in the lawn, or any other circumstance that could cause someone to trip or fall. This type of coverage is especially important because it can keep you from having to pay expensive fees out of your own pocket. Many people assume that they already have liability coverage and only find out that they don’t when an incident happens.

While your standard home insurance plan may include this coverage, it often does not. Therefore, you should consult with your insurance agent and request that liability coverage is added to your policy if it isn’t already.

Coverage for Damage to your Home Caused by Bad Weather. Most insurance companies in Indiana will cover damage caused to your home due to wind-driven rain, falling trees, other falling objects, and the collapse of a structure due to the weight of ice or snow.

Depending on the company you have home insurance with, your standard policy may also cover damage caused by frozen pipes due to freezing temperatures.

Inclement Weather in Indiana

There are parts of Indiana which are prone to severe storms and inclement weather more than others. Having a home in one of these areas can cause your insurance rates to go up.

If you are planning to move to Indiana and have yet to decide on what city you want to live in, choosing one that isn’t likely to be in the pathway of harsh storms, tornadoes and extreme wind would be a good option.

What's Not Covered

Home insurance companies are very specific when it comes to what damage they will pay for and what they will not. Do not assume that just because one company says they’ll pay for a certain type of damage, that it means all insurance companies in Indiana will do the same.

If there is interior damage to your home caused by a storm and no damage caused to your walls or roof, your policy usually will not cover it. The insurance company will not pay for the removal of fallen trees or branches due to a storm.

They will not pay for food spoilage because of a power outage, or water damage caused by backed up sewer drains. Refer to your policy and ask your agent for more details if you are unsure about the type of coverage you are paying for.

Flood Insurance

In most cases, your homeowners insurance policy in Indiana will not cover loss or damage due to a flood. There are some insurance companies that will offer coverage known as a Hydrostatic Pressure Endorsement to insure your property due to an excessive amount of water on your structure’s foundation.

While this is a condition that often happens during a flood, the hydrostatic pressure endorsement will only cover damage which caused the structure to collapse due to hydrostatic pressure, such as burst water pipes. It doesn’t provide coverage for damage simply caused by a flood. While your coverage may pay for damages due to excessive water in or around the home, the circumstances are different.

This coverage is only for damage caused by issues such as plumbing emergencies or a broken sewer pipe. The result of the damage may be the same following a flood, but the cause is very different. And that is what your home insurance company will pay attention to when you file a claim.

Tornado Insurance

There are areas in Indiana that are more prone to tornado touchdowns than others. Most homeowners insurance policies will cover damage caused by a tornado.

However, the amount of coverage that you receive is based on the area you are in and the plan that you have in place. The exact cause of the damage is another factor, very similar to the technicalities with flood insurance.

If the damage to your home was caused by hail or strong winds, your policy will take care of the costs. Yet if the damage was caused by flood from rain that accompanied the tornado, it’s possible that your insurance company will not cover those costs.

Most Affordable Cities

The cities in Indiana that have the lowest home insurance rates are in the northern part of the state. While those that have more expensive premiums are all throughout the state, with many in the western part of the state. The cities with the least expensive home insurance premiums are:

  • Decatur
  • Bluffton
  • Lafayette 
  • Auburn 
  • Columbia City

Most Expensive Cities

The cities with the most expensive home insurance premiums are:

  • Plainfield
  • Greencastle
  • Dale
  • Gary
  • Paoli

Top Picks for Indiana

There are several great insurance companies in the state of Indiana that offer homeowners’ insurance. These five companies are the best based on customer reviews and premium rates.

Best For
  • No Recent Claims

1. Allstate

Allstate is a leader in the insurance industry and has held that title for many years. The company was founded in 1931 and today it serves more than 16 million households.

Allstate provides customers with assistance when life takes an unexpected turn. At the end of the year in 2015, the company had $104.7 billion in assets. When looking for a home insurance company that is reliable and will offer the optimal amount of coverage available, Allstate is an excellent choice.

Insurance options from Allstate

Allstate offers a wide range of insurance options, from outstanding home insurance policies to auto, life and business insurance. The company offers its customers roadside assistance and additional coverage options for renters, condominium owners, and motorcycle drivers.

You can file and track a claim online, and getting a quote is a quick and easy process. To obtain a free quote from Allstate, visit the website or contact a local agency by phone.

Liberty Mutual
Best For
  • Tailored coverage

2. Liberty Mutual

Liberty Mutual is a well-known company in the insurance world that offers a wide range of different policies at an affordable price.

The company was founded in 1912 and since that time has been committed to providing customers with useful and competitively-priced policies and services. Liberty Mutual is now the third-largest insurer of property in the United States. Customers appreciate the company’s fast response time and range of options.

Insurance options from Liberty Mutual

Liberty Mutual is your one-stop location for insurance options. The company offers auto, home, and life insurance plans as well as coverage for boats and watercraft, mobile home insurance, flood insurance, and identity theft protection.

You can get a free quote for home insurance in Indiana by visiting the website or contacting your local Liberty Mutual agency.

State Farm
Best For
  • Customers who have existing policies with State Farm

3. State Farm

State Farm has provided residents of Indiana with reliable insurance coverage since 1922. State Farm is a mutual company that puts its focus on the needs of its customers.

State Farm has been a leader in the insurance industry for many years because of its commitment to customer support and satisfaction. State Farm is also known for helping in the communities it serves.

Insurance Options from State Farm

There are several insurance options for customers to bundle from State Farm. Choose from auto, motorcycle, and sport and leisure vehicle insurance for your ride.

You can also add life, home and property, long-term care and disability insurance. Along with coverage for the things you own, State Farm also offers banking options such as home mortgage loans, credit cards and banking options including mutual funds, retirement, and IRAs.

American Family
Best For
  • Diminishing Deductible Option

4. American Family

American Family Insurance is a company that always puts the needs of customers first. Getting the right insurance policy is simple through American Family, and the company has plans that will fit any type of budget.

The company has 24/7 customer service available by phone and local agents on hand to help in your time of need. They also allow customers to submit their claims online.

Insurance options from American Family

American Family’s insurance policies include options for car, home, life, business, farm and ranch and renters insurance. Discounts include multi-product discounts, age of home, renovated home, and home purchase discounts. To learn more about its products, you can call or chat with a live agent directly on the website.

Indiana Farm Bureau
securely through Indiana Farm Bureau's website

5. Indiana Farm Bureau

Indiana Farm Bureau has helped residents of the Hoosier state protect their homes since 1934. The company’s mission is to be the premier provider of insurance options and financial products to the communities they serve.

Indiana Farm Bureau is a top choice among many of the families in the state, making the company the largest writer of farm insurance in the state.

Insurance Options from Indiana Farm Bureau

Insurance options offered by Indiana Farm Bureau include home, life, auto, business and farm. They also offer financing options such as retirement and annuities. To request a quote, call or stop by your local Farm Bureau agency to speak with a representative.

Take Action

Finding the right insurance company for your property can sometimes be tricky. That’s why it’s so important to find your options and learn as much as you can about the companies in your area. By conducting your own research, you will gather first-hand details on the policies that are available to you.

To ensure that you receive the amount of coverage you require, be sure to ask your agent to explain the specifics of your homeowners insurance policy before you sign your contract.

Want to learn more about insurance? Check out Benzinga’s guides to car insurance in Indianapolis, the best life insurance companies and the best affordable car insurance companies.