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The average homeownership rate in Indianapolis is 53.1 percent, slightly lower than the national average of 63.9 percent, with the median home value estimated to be around $137,000. If you are a homeowner in Indy, one of your priorities must be to insure your property against unforeseen loss and damages.
The national average cost of home insurance is $1,312, while in Indianapolis, it costs $1,267 per year for $250,000 dwelling coverage. Although this may seem affordable, when you consider the storms the city experiences every year, the resulting damage can increase insurance premiums.
When shopping for home insurance in Indianapolis, it is important to consider your budget and the savings you want to make on your premiums. You also want the right coverage to protect your finances should one of your largest investments, your home, experience damage from a sudden catastrophe.
Best cheap home insurance companies Indianapolis
Most major property insurers are available in Indianapolis, but not all of them offer the same prices. Considering your budget, some insurance companies might be cheaper than others. Bankrate analyzed major home insurers by market share, third-party ratings from J.D. Power and AM Best, compared coverage options, discounts and quoted annual premiums from Quadrant Information Services to help find the most affordable home insurance in Indianapolis.
Below are the best cheap homeowners insurance companies in Indianapolis based on Bankrate’s assessment.
One of the cheapest home insurance companies on Bankrate’s list is American Family, with a standard policy priced at an average of $965 per year. Aside from the basic coverage options, American Family offers add-on coverage such as sump pump and water backup coverage, credit theft protection and equipment breakdown coverage. There are generous discounts for bundling policies, newly constructed homes, renovated homes and loyal customers.
Learn more: American Family Insurance review
Although exclusive only to military families, veterans and their immediate family members, USAA is a low-priced yet high-rated home insurance provider. Compared to the state average, USAA is much cheaper at only $1,021 per year. There are useful add-ons available, such as home-sharing coverage, earthquake insurance, valuable property coverage and coverage for military uniforms. Safety features, multi-policy bundling and military deployment are some of the available discount options.
Learn more: USAA Insurance review
Erie is a regional insurer that offers affordable home insurance policies for an average of $1,047 a year in Indianapolis. Besides dwelling, liability and personal property coverage, the company also offers home business protection, water and sewer backup and guaranteed replacement cost as optional endorsements. The discounts are basic, ranging from safety devices to advance quotes to policy bundling.
Learn more: Erie Insurance review
One of the oldest insurance companies around, Travelers offers standard homeowners protection for an average of $1,149 per year. Coverage is customizable with several add-ons, such as special personal property coverage, water backup, additional replacement cost coverage, contents replacement cost and identity theft protection. Discounts are available for new homes, safety devices, sustainable building materials and policy bundling.
Learn more: Travelers Insurance review
Nationwide is a trusted home insurance provider, offering standard coverages and unique add-ons such as credit card coverage. In Indianapolis, the average cost of a home insurance policy from Nationwide is around $1,166 per year, and the company claims that it is possible to save nearly $646 a year compared to other insurers by bundling multiple policies. Nationwide offers a menu of discounts, such as roof upgrading, being claims-free and having safety devices installed in your house.
Learn more: Nationwide Insurance review
Home insurance coverage options in Indianapolis
The geographic location of Indiana makes it prone to storms, floods, and tornadoes, which cause millions of dollars worth of damage every year in the state. Home insurance is not mandatory anywhere, but your lender will likely require it. Even if your home is paid off, since your property is possibly your most expensive investment, you would want to protect it with the proper coverage. Aside from the usual dwelling, liability, and personal property coverage, homeowners in Indianapolis could consider adding the following endorsements to their policy:
- Flood insurance: Flood is usually excluded from a standard homeowners insurance policy but is available from the National Flood Insurance Program and some private insurers.
- Loss of use coverage: Also known as additional living expense coverage, loss of use coverage pays for living expenses while your house is damaged and undergoing repair.
- Water or sewer backup coverage: This coverage helps cover repairs due to damages caused by water backing up through your plumbing and into your home.
Home insurance discounts in Indianapolis
An easy way to reduce home insurance costs is to take advantage of available discounts. In Indianapolis, home insurance discounts and the savings these discounts bring may vary from one insurer to another, but certain discounts are common across all companies. These include:
- Policy bundling: When you combine two or more policies from the same insurer, you usually get a multi-policy discount and can save some money off your premiums.
- Safety devices: If your house is equipped with fire and burglar alarms, or sprinkler systems on the inside of your home, you stand to qualify for a safe home discount.
- Claims-free: Having a claims-free loss history on your CLUE report for three years or more makes you a safe customer and usually earns you a discount.
- New home: If your house is new construction, it is likely to present fewer problems in the near future, and some insurers reward this with a discount.
Depending upon eligibility, more discounts may be available in Indianapolis from different insurers, but the ones listed above are the most popular.
Frequently asked questions
What is the best home insurance company?
The best home insurance companies are the ones that are financially stable and combine the most competitive rates, diverse coverage options and discounts, and excellent customer satisfaction. Since insurance is highly personal, individual needs and choices will vary from one person to another, and picking the right insurer should be preceded by thorough research.
How much does home insurance in Indianapolis cost?
On average, home insurance in Indianapolis costs $1,267 a year for $250,000 in dwelling coverage. The cost of insurance can be higher or lower depending upon your ZIP code, square footage, construction materials, loss history, coverage options and deductible.
How much home insurance do I need in Indianapolis?
When you purchase a policy, make sure the coverage is sufficient to rebuild your house if you are faced with unforeseen disasters. Your insurance agent will help you determine the amount of dwelling coverage you need based upon the characteristics of your home.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.