Indiana's average home insurance premium is $261 monthly or $3,136 annually. Residents pay $28 less per month ($331 less annually) or 10% below the national average. Indiana is the 14th most expensive state for coverage.
Average Home Insurance Cost in Indiana
Updated: December 22, 2025
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Key Takeaways: Indiana Home Insurance Rates
Home insurance in Indiana costs $261 monthly ($3,136 yearly). The state ranks 14th nationally for coverage costs.
Shop smart for Indiana home insurance: calculate your coverage needs and budget, then compare quotes from multiple providers.
Use MoneyGeek's free Indiana home insurance calculator below to estimate your costs in seconds without providing personal information.
How Much Is Home Insurance in Indiana?
| Indiana | $3,136 | $3,467 | -10% |
*These rates are for a frame construction home built in 2000 with $250,000 dwelling, $125,000 personal property, $200,000 liability coverage and a $1,000 deductible.
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$220
High
$144
Average
$104
Low
Rates updated:
Dec 23, 2025
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What Affects Average Indiana Home Insurance Costs?
Your home insurance rate depends on several factors, including location, coverage amount, home construction details, your chosen insurer, credit score and claims history. Each factor can change your premium by hundreds of dollars annually.
Average Indiana Home Insurance Cost by City
Weather patterns, property age and home values vary across Indiana cities, causing rate differences up to 22%.
| Butler | $247 | $2,962 |
| Elkhart | $237 | $2,843 |
| Evansville | $277 | $3,327 |
| Fort Wayne | $236 | $2,828 |
| Goodland | $272 | $3,260 |
| Indianapolis | $288 | $3,459 |
| South Bend | $245 | $2,939 |
Average Indiana Homeowners Insurance Pricing by Coverage Level
Coverage limits and deductibles affect Indiana home insurance rates, with average annual costs ranging from $1,814 to $8,663.
| $100K Dwelling / $50K Personal Property / $100K Liability | $151 | $1,814 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $261 | $3,136 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $418 | $5,019 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $565 | $6,785 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $722 | $8,663 |
Average Cost of Indiana Home Insurance by Company
Your choice of insurance company determines what you pay for coverage in Indiana. The most expensive provider costs over six times more than the cheapest: an average of $8,862 annually with Travelers versus $1,470 with American Family.
| American Family | $123 | $1,470 |
| USAA | $159 | $1,904 |
| State Farm | $167 | $1,999 |
| Nationwide | $178 | $2,130 |
| Farmers | $184 | $2,205 |
| Auto-Owners Insurance | $257 | $3,082 |
| Allstate | $286 | $3,433 |
| Travelers | $738 | $8,862 |
Indiana Homeowners Insurance Costs by House Age
Your home's age affects what you pay for home insurance in Indiana. Newer homes cost 44% less to insure than older homes, with annual premiums ranging from $1,840 for newer construction built in 2020 to $3,294 for older homes built in 1980.
| Newer | $153 | $1,840 |
| Middle Age | $261 | $3,136 |
| Older | $274 | $3,294 |
Average Indiana Home Insurance Cost by Credit Score
A higher credit score makes you appear more reliable to insurers, lowering your home insurance costs. Rates in Indiana range from $1,280 to $5,161 annually.
| Excellent | $107 | $1,280 |
| Good | $261 | $3,136 |
| Below Fair | $337 | $4,047 |
| Poor | $430 | $5,161 |
Why Is Home Insurance So Expensive in Indiana?
Home insurance is expensive in Indiana because of the increasing number of claims, the high risk of severe weather and natural disasters, and rising material and labor costs.
Rising claims
When homeowners frequently file insurance claims, insurers increase premiums to cover the higher risk of payouts. Indiana homeowners with a clean five-year claims history pay $3,136 annually on average. File one claim and your premium jumps to $3,635 on average — a $499 increase. Two claims push costs to $4,055, adding $919 on average to your baseline rate.
High weather risks
Indiana saw 57 tornadoes in 2024, double the typical 20 to 30 annual average. These weather patterns make damage more likely, prompting insurers to raise rates in high-risk areas.
Rising material and labor costs
Construction in Indiana ranges from $130 to $170 per square foot in 2024, with labor making up 30% to 50% of total budgets. Rising construction costs force insurers to increase premiums to cover their higher payout costs when claims occur.
Tips to Save on Indiana Home Insurance
Indiana home insurance costs average $3,136 annually, but smart shopping can save you hundreds without sacrificing coverage for repairs, rebuilding and liability claims.
- 1Calculate your coverage needs
Start with your home's replacement cost (what it costs to rebuild today, not its market value). Walk through your home room by room to inventory belongings and estimate their total value.
Add scheduled personal property coverage for jewelry or electronics and water backup protection. Extended replacement cost coverage protects you if rebuilding costs exceed your policy limits.
- 2Research costs and discounts
Use MoneyGeek's free Indiana home insurance calculator above to estimate costs based on your home's age, location and coverage needs. Insurers offer 10% to 20% discounts for security systems, new homes, claims-free records and protective devices like smoke detectors or storm shutters.
- 3Compare multiple providers
Get quotes from at least three insurers. Price matters, but also check customer service ratings, claims processes and financial strength.
- 4Bundle policies
Bundling home and auto insurance with one company reduces premiums by 10% to 25% on both policies. State Farm offers bundling discounts for Indiana homeowners.
- 5Reduce your risk profile
Installing security systems, smoke detectors or a new roof lowers premiums. Maintaining a claims-free record saves $335 to $418 annually compared to filing one or two claims.
Improving your credit from below fair to good cuts costs by 22% in Indiana. Pay bills on time, reduce credit card balances and correct credit report errors.
Calculate Indiana Homeowners Insurance Costs: FAQ
Indiana homeowners often have questions about how claims, home age and credit scores affect their insurance premiums.
How much will my premium increase after filing a claim in Indiana?
One claim raises your premium by $499 annually, while two claims increase it by $919. Indiana homeowners with clean five-year records pay $3,136 on average. After one claim, that jumps to $3,635. After two claims, you'll pay $4,055 per year. Claims stay on your record for five years.
How much can I save by choosing a different insurer in Indiana?
Shopping around saves thousands annually. American Family offers the lowest average rates in the state at $1,470 per year, while Travelers charges $8,862 annually for comparable coverage. Even among mid-range providers, differences reach $206 annually. State Farm costs $1,999 while Farmers charges $2,205. Compare quotes from at least three insurers to find the best rate for your situation.
Does home insurance in Indiana cover tornado damage?
Yes, standard home insurance policies in Indiana cover tornado damage to your dwelling, other structures and personal property. Your policy covers wind damage from tornadoes, including roof damage, broken windows and destroyed structures. You'll need to pay your deductible before coverage kicks in.
Why does home insurance cost more for older homes in Indiana?
Older homes cost 79% more to insure than newer homes in Indiana. Homes built in 2020 average $1,840 annually, while homes built in 1980 cost $3,294, a difference of $1,454 per year. Middle-aged homes built in 2000 fall in between at $3,136 annually.
Insurers charge more for older homes because they often have outdated electrical systems, plumbing and roofing that can fail and cause claims. Older homes also cost more to repair since they require specialized materials or construction methods that match the original build.
How can I lower my home insurance costs in Indiana?
Compare quotes from multiple insurers, as rates vary by thousands of dollars for identical coverage in Indiana. A claims-free record saves $335 to $418 annually compared to filing one or two claims. Raising your deductible from $500 to $1,000 cuts premiums by $227 per year, though you'll pay more upfront when filing claims. Ask about bundling discounts, security system credits and new home discounts.
How We Analyzed Indiana Home Insurance Rates
Indiana homeowners see quotes vary by thousands of dollars for identical coverage, sometimes six times more. We built our rate analysis to isolate what actually drives your costs, helping you identify where you can save and where you should spend.
Our baseline home: $250,000 dwelling coverage, $125,000 personal property, $200,000 liability and a $1,000 deductible. This frame home built in 2000 with a composition roof and no claims in five years reflects Indiana's median home value and most common construction age. We chose these specifications because they represent the typical Indiana homeowner's situation.
We changed one variable at a time to measure each factor's real cost impact. For home age, we compared rates for identical coverage on homes built in 1980, 2000 and 2020. For credit scores, we requested quotes using excellent, good, below fair and poor credit while keeping all other details the same. This approach shows exactly what each factor costs, not general trends or estimates.
Your actual rates depend on your home's age, construction type, roof condition, coverage limits, claims history, credit score and ZIP code. Use these comparisons to focus on the factors you can control.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Today's Homeowner. "How Much Does It Cost to Build a House in Indiana?." Accessed December 23, 2025.
- WTHR. "The Biggest Weather Stories of the Year for Indiana 2024." Accessed December 23, 2025.