Homeowners insurance in Indiana

The home insurance market in Indiana

Indiana homeowners paid $3.55 billion in homeowners premiums in 2025, according to NAIC market share data. These are the 10 largest insurance groups by 2025 direct premiums written:

State Farm writes nearly a quarter of the market, but after it the field is crowded: four groups hold between 6% and 8% each, and the top 10 together wrote about 78% of premiums, leaving more than a fifth of the market to smaller regional and mutual insurers. Erie Insurance and Indiana Farm Bureau Insurance both rank in the top four here, well above their national positions. For a shopper, that means several regional and Farm Bureau options to quote against the national brands.

What drives home insurance costs in Indiana

Severe storms are the defining peril. FEMA declared major disasters for severe storms, straight-line winds and tornadoes on March 31 to April 1, 2023, for storms, tornadoes and flooding from March 30 to April 9, 2025, and again for storms, tornadoes and flooding from Aug. 11 to 24, 2026. After a storm like these, document roof, siding and window damage before temporary repairs; see hail damage claims: roofs, siding and windows.

Indiana premiums remain below the national average. The NAIC's average HO-3 premium for Indiana was $1,259 in 2023, against $1,737 countrywide.

Deductibles and coverage rules to know

Indiana has no hurricane or named-storm deductible rules. If your policy has a separate wind/hail deductible, it may be a percentage of the dwelling limit. Say your dwelling limit is $300,000 and that deductible is 2%: you pay the first $6,000 of hail damage. Check the declarations page and use the hurricane and percentage deductible calculator.

Mine subsidence is the Indiana-specific coverage. Standard policies exclude it, but insurers writing homes in the 26 southwestern counties along the Illinois Coal Basin (including Vanderburgh, Vigo, Knox, Gibson, Warrick and Posey) must tell you it is available, and must add it if you ask. The state Mine Subsidence Insurance Fund backs it. The Department says coverage runs up to $500,000 per structure, and the statute sets the deductible at 2% of the insured value with a $250 minimum and a $500 maximum, plus up to $15,000 for living expenses if you are displaced. The statute pays the loss in actual cash value, and damage that has already happened is not covered, so buy it before you see cracks.

From Jan. 1, 2027, a premium increase of more than 10% beyond an insurer's filed rate plan counts as a "material change" under IC 27-2-28. The insurer must explain the main reasons in writing, or tell you that you can ask; you then have 30 days to request the explanation, and the insurer has 45 days to give it. A reference to the insurer's internal models or a poor insurance score does not count as an explanation.

Flood and other gaps

FEMA counted 15,084 NFIP policies in force in Indiana as of Sept. 30, 2026. Marion County held 2,390, almost all of them in Indianapolis (2,386), followed by Lake County (1,010) and Clark County (712), across the Ohio River from Louisville. Standard homeowners policies exclude flood, and sewer or drain backup is typically covered only by endorsement. See NFIP flood insurance explained and water backup and sewer backup coverage.

If you can't find coverage

The Indiana FAIR Plan, formally the Indiana Basic Property Insurance Underwriting Association, has been the insurer of last resort since 1968. It is funded by premiums and, if needed, assessments on member insurers. You qualify after being declined by at least three insurance companies; any licensed Indiana agent can submit the application, and an inspector will visit the inside and outside of the home. Forms are basic and broad dwelling fire (DP-1 and DP-2) and homeowners modified HO-8 and HO-2, with a $250,000 maximum on the building. Payment is annual only. The Plan wrote 718 policies in fiscal 2023, according to Property Insurance Plans Service Office data published by III. Call 317-692-0559. See FAIR plans explained: the insurer of last resort for homes.

Indiana's notice rules for homes of up to four units (IC 27-7-12): an insurer must mail nonrenewal notice at least 60 days before the policy expires. Cancellation needs 10 days' notice for nonpayment or in the first 60 days, and 20 days after that. After 60 days, it may cancel only for listed reasons such as nonpayment, fraud, a substantial increase in hazard or two years of delinquent property taxes. You can ask for a written reason, and it must be clear enough for a layperson to understand. An insurer cannot terminate a policy just because another insurer declined you or because you were once in the FAIR Plan. From Jan. 1, 2027, an insurer that nonrenews based solely on aerial images must let you see the photos (taken within 24 months), give you at least 60 days to fix the problem, offer an appeal, and renew if you prove the repairs. Start with your home insurance was nonrenewed: what to do now.

Claims rules and deadlines

Indiana sets no statutory day counts for handling a homeowners claim. IC 27-4-1-4.5 makes it an unfair practice to fail to acknowledge and act reasonably promptly, to refuse payment without a reasonable investigation, to fail to affirm or deny coverage within a reasonable time after proof of loss, or to lowball a claim in a way that forces you to sue. A homeowners policy may not cut off your right to sue sooner than two years after the date of loss (IC 27-1-13-17). Indiana has no state claim mediation program, so disagreements over the amount can go to the policy's appraisal clause, and complaints to the Department. See how to file a homeowners insurance claim.

Discounts and mitigation programs

Indiana has no statewide mitigation grant program and is not among the nine states IBHS listed in July 2025 as offering statewide FORTIFIED grants. Discounts for impact-resistant roofs, new or renovated homes, protective devices and bundling vary by insurer, so ask each company which credits it files in Indiana before you replace a roof.

Where to get help

The Indiana Department of Insurance Consumer Services Division handles complaints about claims, cancellations and premiums: 800-622-4461 toll-free or 317-232-2395. Complaints must be in writing. The online consumer complaint portal on the Department's complaint page is the preferred route; you can also mail or fax the complaint form to 311 W. Washington Street, Suite 300, Indianapolis, IN 46204-2787 (fax 317-234-2103). Keep the problem report number from your confirmation letter. See how to file a complaint with your state insurance department.

Neighboring state guides: Illinois, Ohio, Michigan and Kentucky.