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The Best Cheap Indiana Homeowners Insurance for 2024

Updated
Dana George
By: Dana George
Dana George
Dana George
Writer

Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.

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If you have just purchased a home, shopping for homeowners insurance does not have to be a chore. While the right homeowners insurance policy can protect one of your most important assets, there are plenty of companies competing to offer the best homeowners insurance in Indiana. Here, we walk you through which companies offer the most competitive rates and explain some of the key factors to look for in an insurance policy.

  • Cheapest overall for Indiana: Indiana Farmers Mutual
  • Cheapest for new home construction: Erie Insurance
  • Cheapest for older homes: Cincinnati Financial
  • Cheapest for homeowners who have filed a claim: Indiana Farmers Mutual

Cheapest overall for Indiana

These three companies pride themselves on offering cheap homeowners insurance in Indiana:

  • Indiana Farmers Mutual, with an average annual rate of $996
  • Cincinnati Financial, coming in with an average rate of $1,075
  • Allstate, with an average annual rate of $1,131

Cheapest for new home construction

New homeowners are sometimes surprised to learn that they'll pay a discounted price for homeowners insurance. That's because all the bits and parts of the home are new, and insurance companies aren't quite as worried about making big payouts any time soon. They tend to pass their expected savings on to the homeowner by way of lower insurance premiums. These three Indiana home insurance providers are among the least expensive for newly built homes:

Cheapest for older homes

There's a reason so many people fall in love with older homes. They've got character and flourishes that most new homes can't touch. They also tend to have problems not seen in newer builds. For example, an older home is more likely to have problems like termites, wood rot, a damaged roof, and leaks. For that reason, companies charge more to insure an older home. Still, these three companies have managed to keep their prices for older homes relatively competitive.

  • Cincinnati Financial, with an average annual rate of $913
  • Indiana Farmers Mutual, offering an average annual rate of $922
  • Allstate, with an average annual rate of $1,039

Cheapest when you've made a claim

If a home is damaged or destroyed, insurance is there to make things right. Still, a homeowner can expect their premiums to go up for a time after a claim is made. For a Hoosier homeowner who has previously made a claim, these three insurance companies offer the lowest rates in the state:

  • Indiana Farmers Mutual, offering a forgiving rate of $1,008
  • Cincinnati Financial, coming in with an average annual rate of $1,176
  • Allstate, offering an average annual rate of $1,259

Average home insurance cost in Indiana compared to the national average

The average cost of homeowners insurance in Indiana is $1,837, about 6% higher than the national average of $1,725.

Average Rate Category Indiana National Average
Overall $1,837 $1,725
New home construction $882 $943
Older homes $1,820 $1,658
When making a claim $1,932 $1,803
Data source: Quadrant data.

Indiana homeowners insurance overview

The best homeowners insurance in Indiana is a combination of comprehensive coverage and low rates. Before shopping for homeowners insurance, it's good to know what to look for.

Types of homeowners coverage

There are six types of policies designed to cover traditional (non-mobile) homes in Indiana. The policies range from basic coverage to coverage with all the extras. The best homeowners insurance companies offer them all.

Level of coverage

The level of coverage a homeowner chooses to carry is a matter of personal preference. Someone may pay for a bare-bones policy, then wish they had more comprehensive coverage when peril strikes. Or, they could pay for all the bells and whistles, and never make a claim. Because there's no way to know if homeowners coverage will be needed, the best thing a homeowner can do is assess how much risk they're willing to assume. The lower the risk they're comfortable with, the more comprehensive the policy should be.

Amount of deductible

When a claim is made, the homeowner typically owes a deductible. Let's say a roof is damaged and it's going to cost $12,000 to make repairs. If the homeowner has a $1,000 deductible, they pay their portion to the contractor, and the insurance company pays the other $11,000. It's up to a homeowner shopping for coverage to choose what deductible they prefer. The lower the deductible, the higher the annual premium they can expect to pay.

Potential discounts

Nearly all insurance companies offer home insurance discounts. These discounts represent one of the best ways to snag cheap homeowners insurance in Indiana. To fairly compare one policy to another, it's important to know how much each policy costs after discounts are factored in. Discounts range from whether there's an alarm system in the house to whether a homeowner bundles auto and home insurance with one company.

What are the most common homeowners insurance claims in Indiana?

Knowing which types of claims are most common is one way to determine the proper level of coverage to buy.

Water damage and freezing

As a Midwestern state, Indiana gets its share of rain and snow each year. From roofs damaged by ice dams to wood rot caused by rain, water damage and freezing are two of the top reasons Hoosiers make claims.

Fire and lightning

It's impossible to find a place in the U.S. that doesn't experience fire and lightning. In fact, according to the Insurance Information Institute, 25% of all homeowners insurance claims are due to fire and lightning damage. It's not the No. 1 claim in the state, but replacing roofs damaged by lightning or rebuilding homes burnt to the ground are among the most expensive claims insurers deal with.

Wind damage

Wind in Indiana can be the result of a simple summer storm or as serious an event as a tornado. In either case, the resulting damage can be severe, and is one of the primary reasons to purchase a good homeowners insurance policy.

Homeowners insurance coverage options and discounts in Indiana

As mentioned, policy discounts are one of the best ways to save money on homeowners insurance. Some discounts can save the homeowner a lot. For example:

An alarm system scores a discount

The best homeowners insurance in Indiana rewards homeowners for protecting their property by installing an alarm system. The average savings is around 7%. Let's say the annual premium is $1,000. An alarm system can cut that amount by $70, while also reducing the risk of a break-in.

Roof upgrades take a bite out of premiums

A lot of claims involve roof replacement or repair. Upgrading a roof can provide an Indiana homeowner with a whopping home insurance discount. Because there is less risk the roof will need to be replaced or repaired soon, the average discount for homeowners who upgrade a roof is an impressive 24%.

Advance purchase leads to more discounts

Something as simple as paying the annual premium upfront can save an Indiana homeowner an average of 10%.

5 cheapest cities in Indiana for homeowners insurance

Insurance companies take many factors into account as they determine premiums. They include things like:

  • A city's crime rate
  • The value of other homes in the area
  • Cost to rebuild in a particular area
  • How far a house is from a fire station

That said, here are the five cheapest cities in Indiana for homeowners insurance:

City Name Average Home Insurance Rate
Granger $1,465
Goshen $1,468
Shipshewana $1,502
Elkhart $1,504
Angola $1,516
Data source: Quadrant data.

5 most expensive cities in Indiana for homeowners insurance

Here are the five most expensive cities in the Hoosier State for homeowners insurance:

City Name Average Home Insurance Rate
West Newton $2,279
Somerville $2,271
Mackey $2,269
Coalmont $2,263
Staunton $2,255
Data source: Quadrant data.

The best homeowners insurance in Indiana offers it all: low rates and good coverage. Insurance may not be the most exciting purchase a homeowner makes, but it's certainly one of the most important.