UPDATED: Mar 18, 2020
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Indiana’s home insurance rates are right about on par with the national average, coming in at 2% under that average. Shopping around can make a big difference in terms of how much you will pay to cover your home, but low rates are only a part of the picture. The best home insurance for Indiana homeowners is the policy that provides overall value, and our top picks do just that.
The Basics of Indiana Home Insurance
Home insurance is not required by any state law, unlike car insurance, but most homeowners do have to carry a policy. That’s because lenders do mandate coverage as a part of the mortgage agreement, and most people do have a mortgage.
When you sign for a home loan, you agree to keep an insurance policy in place that protects the mortgage company’s investment in your home. If that policy is cancelled for any reason, you will need to replace it right away, or the lender can take one out for you and charge you for it. This type of coverage, called force-placed insurance, doesn’t provide you with any coverage. It is only designed to protect the lender. It’s therefore in your best interest to keep a good home insurance policy in place – it will provide you with a lot of protection.
In addition to protecting the home itself, a homeowner’s policy is a package that includes coverage for your personal property, liability protection, and a benefit for living expenses during a covered claim repair process.
In addition to the basics of coverage, there are a wide variety of home insurance options that can be added on. These include things like water and sewer backup, identity theft protection, and coverage for high-value items like jewelry or musical instruments. Some of these may be part of a standard package from some insurance companies, while others may be add-on options.
Specifics of Home Insurance in Indiana
Indiana is not known for floods or earthquakes, the two biggest natural disasters that are not covered by a standard insurance policy, so many homeowners will not have to worry about any specifics of coverage.
Floods can and do happen in Indiana, however, and some areas may be designated as high-risk. In that case, you will need to purchase a flood insurance policy in addition to a standard homeowner’s policy.
The one natural disaster to which Indiana is prone is tornados. Fortunately, tornado damage is not usually excluded from an all perils home policy, but in the case of a named perils policy, it is vital to make sure tornados are listed as covered.
Our choices for the best home insurance in Indiana are based on several important factors that all add up to a good value.
Price is the number one factor for most people when shopping for insurance, and with rates varying greatly, it is certainly an important one. The least expensive rate is not always the best choice, however. Insurance companies vary widely in terms of what is included in a base policy and choose different basic limits and deductibles for quoting. It is important to look at what you are getting for the price and make sure you are not being underinsured.
The second factor, therefore, is the quality of the policy and coverage available. We looked for companies that offer a solid basic homeowner’s package. Our choices all offer comprehensive coverage without nickel-and-diming every extra benefit; package add-on endorsements and extended replacement cost are both things we look for in a good home insurance policy.
Finally, we looked for companies that offer great rates on great products and back that with a great reputation. All of the companies on our list rate highly in customer satisfaction based on trusted consumer reports. They also have happy customers out there and a low complaint volume for the size of the company. Claims satisfaction is the biggest factor we considered since claims are the time when a company really shows its true colors. We also looked at overall customer satisfaction.
We chose companies that offer coverage to the majority of Indiana homeowners, which means leaving off some otherwise good picks. Always an honorable mention, USAA is a great choice for those that qualify. Due to their eligibility requirements, however, we left them off our list in favor of companies that can assist the largest portion of the population with their insurance needs.
Our Top Picks
These companies all meet our standards for customer satisfaction, have competitive rates, and also provide solid package policies.
State Farm is a powerhouse of the personal insurance market, holding their position as the biggest home and auto insurance company nationwide. They earn that place with consistently good ratings for customer service and for claims handling.
For Indiana, they are also one of the more affordable choices, coming in with competitive rates across the state. They also have a hefty auto/home discount that makes them a great choice for bundling. And their base home insurance policy includes comprehensive coverage without any cut corners.
Although they are not rated in national surveys like J.D. Power, this company consistently ranks highly in customer reviews. They are a local insurance company and work through agents, which makes them a good choice for those that prefer the smaller, homegrown approach and a company that really knows Indiana.
They also have competitive rates and a good list of discounts and are especially helpful for those whose homes are also located on any kind of farming operation – not uncommon in Indiana. You will have to become a member to get a policy here, but that is open to all Indiana residents and even comes with extra perks.
Allstate offers some of the best rates in the state, and backs it with solid ratings for customer service. They offer a solid package policy to homeowners, with added benefits at no added cost. They also offer RateGuard, which prevents your rate from going up after a covered claim.
Allstate also has one of the most impressive lists of discounts of any home insurance company, making it easy for most homeowners to get the price even lower. They are another good pick for bundling, with a good discount for insuring your car with your home insurance.
Shopping for Home Insurance in Indiana
One of our top picks for Indiana home insurance does not offer online quoting, and although some may find it inconvenient, that means getting a good look at what is available to you may take a little extra effort.
Finding a good local agent to help you with your home insurance search is the best way to make sure you have compared all of your best options. There are a lot of great smaller insurance companies out there that you might miss if you do not use an agent to gather quotes.
That said, Indiana is also a state where some of the biggest names in insurance offer a great value, so comparing quotes online is also possible.
Regardless of how you quote, it is important to make sure all of the quotes you receive are based on comparable coverage. That means making sure you have an idea of how much dwelling coverage you need, choosing deductibles, and selecting which additional coverage options you want on your policy. Make sure every quote includes those levels of coverage and choosing the best rate becomes much easier.
The Bottom Line
Indiana homeowners have a lot of options for their insurance and can choose from both national and local companies for great coverage and great rates. Since those rates vary a lot from place to place, shopping around and comparing is always the best tool a homeowner has to make sure they get the right coverage at the right price.
For a list of companies that we recommend, visit our Best Insurance Companies page.