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Indiana Home Insurance Buyer's Guide
More than 71% of the over 6.7 million people in Indiana are home owners. There is a wide distribution of home values in the state, with around 20% of homes being worth less than $100,000, while almost 35% are worth between $100,000 and $200,000 and 39% have a value between $200,000 and $500,000. Whatever your home is worth, you can protect your investment by purchasing Indiana home insurance.
Indiana Home Ownership Risks
Floods, tornadoes and severe storms cause a significant amount of property damage in Indiana every year. Indiana residents have experienced over 1,400 tornadoes since 1950, and there were 20 in 2021. The state sees an average of 22 tornadoes per year, with the record being 72 in 2011. There have been three F5 tornadoes in Indiana history and four tornadoes had a maximum path width of 1 mile. There were 76 heavy rain or flooding events in 2022.
Heavy snowfall in the winter can also damage homes. Areas near Lake Michigan average more than 70 inches of snow per year. A lake-effect storm in 2014 produced 18 inches of snow in Gary.
Indiana Home Insurance Coverages
Homeowners insurance protects your home, personal belongings and other structures on your property. It also provides some protection for damages you or a family member may cause to another person.
Property Damage
Property damage coverage pays to repair or replace your home, other structures on your property and the contents of your home when damage occurs because of a covered cause of loss. Your policy may be an open perils policy that covers all causes of loss that the policy does not exclude, or a named perils policy that covers only the listed causes of loss.
If you own certain types of personal property, such as art, musical instruments or golf equipment, you may need to follow special provisions or add an endorsement to fully cover these items. Boat owners should ask about whether their policy automatically covers their boat or if they need to specifically list it on the policy to receive coverage.
Replacement Cost Versus Actual Cash Value
Some homeowners policies cover the dwelling at replacement value, which is the current construction cost of repairing or rebuilding your home . These types of policies may specify that you must insure your home at a specific percentage of its replacement value to be eligible for this valuation method.
A policy that does not provide coverage on a replacement cost basis will pay for damages on an actual cash value basis. Actual Cash Value (ACV) is the replacement value of your property less a deprecation deduction. While ACV policies are usually less expensive, a policy like this may not fully cover the cost to replace or repair your property at current construction costs.
Additional Living Expenses
If you must spend money on housing, food, transportation or other expenses you normally would not have because of a covered cause of loss, the additional living expenses portion of your policy may cover it. For example, your policy may cover the cost to board your pets while you are unable to live in your home after a fire.
Personal Liability
Personal liability coverage protects you if a member of your family injures someone or damages their property. Additionally, it pays for your legal costs if someone sues you. However, a liability that arises from the operation of a business or motor vehicle is typically excluded.
Medical Payments
If your policy includes medical payments coverage, it will pay for a limited amount of medical expenses that occur because of an injury to someone else that happens on your property even if you did not cause that injury. However, this coverage does not apply to members of your household.
Flood Insurance
Though flooding can be a significant risk for Indiana home owners, most homeowners policies exclude this coverage. You may be able to purchase a separate flood policy or add flood coverage to your existing policy for an additional premium. Residents of some areas are eligible to purchase flood insurance through the National Flood Insurance Program.
Earthquake Coverage
Indiana is not a high-risk area for earthquakes, but it does have two major seismic zones. The Wabash Valley seismic zone impacts the southwestern part of the state and the New Madrid seismic zone affects areas along the Mississippi River Valley. The most powerful quakes in the state occurred in 1895 and 1909, and scientists believe earthquakes of this magnitude could happen again.
Most homeowners policies exclude coverage for earthquakes. If you want this protection, consider purchasing a separate policy.
Average Cost of Indiana Home Insurance
The average annual cost of homeowners insurance in Indiana is $875, which is about a third less than the national average. This ranks Indiana among the 10 least expensive states in the U.S. for homeowners insurance.
While homeowners insurance is relatively inexpensive in the state, you can still get a better deal by comparing your rates. Find the best rate on the coverage you need by comparing quotes from different companies with VIU by HUB.
Factors That Affect Indiana Home Insurance Rates
A variety of factors can affect how much you pay for homeowners insurance in Indiana.
Location
The cost of insurance varies from city to city based on property costs, crime rates and other risk factors, such as the frequency of natural disasters.
Your Home
In addition to its value, the materials that make up your home and your home's age and size affect your premiums. Larger homes constructed of higher priced materials tend to cost more to insure. Older homes may also cost more due to age-related risk factors.
Local Fire Protection
The quality of the fire protection in your area may impact your rates. How far you live from a fire hydrant or fire department can also play a role.
This information is intended for general informational purposes only and is not intended to constitute legal advice.
Sources:
Centers for Environmental Information