Flood insurance in Indiana: How much is it & what does it cover?

The average cost of flood insurance in Indiana is $97 per month. If you live near a flood plain or major river, you should consider flood insurance to protect your home and belongings from costly water damage.

Pat Howard 1600

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Pat Howard

Pat Howard

Senior Editor & Licensed Home Insurance Expert

Pat Howard is a senior editor and licensed home insurance agent at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

Published May 13, 2022 | 4 min read

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While it may seem like Indiana’s landlocked location protects it from heavy flooding, much of the Hoosier State is built on natural flood-prone wetlands. Given its low-lying landscape and the numerous rivers that weave throughout the state, it's not uncommon for river-adjacent communities to experience catastrophic flash flood events.

Since standard home insurance in Indiana doesn’t cover damage from flooding, you might want to consider buying flood insurance to insure you’re fully protected. Though flood insurance is not legally required in Indiana, if your house is located in a FEMA-designated special flood hazard risk area, which is any area labeled A or V on FEMA’s flood maps, your mortgage lender may require you to purchase flood insurance. 

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How much is flood insurance in Indiana?

The average cost of flood insurance in Indiana is $1,165 per year through the National Flood Insurance Program (NFIP), the federal government entity that provides the vast majority of flood insurance policies in the U.S. 

Looking at the 18 Indiana cities with at least 100 NFIP policies, the average cost of flood insurance is as high as $2,144 in Fort Wayne, and as low as $597 per year in the Indianapolis suburb of Fishers.  

Here’s a look at the average cost of flood insurance in Indiana cities with at least one FEMA flood insurance policy.

Your flood insurance costs are generally calculated based on the following factors:

  • Your home’s location

  • Your home’s age, size, and construction type

  • Your home’s elevation

  • Your policy deductible amount

  • The amount of coverage in your policy

In addition to the above factors, the amount you pay for flood insurance will also depend on how your flood insurance provider calculates your rates.

FEMA, for example, has historically based its rates on whether or not your house is in a flood plain according to its Flood Insurance Rate Maps (FIRMs). This means you’ll often pay the same flood insurance rate as your neighbor if you live in the same flood zone, even if their house is bigger or closer to a creek and yours is further inland.

Conversely, private flood insurance providers use more advanced methods to determine and price flood risk. This includes analyzing each home’s elevation and simulating flood events using computerized models.

Flood insurance rates may go down in Indiana

Flood insurance in Indiana is expected to get more affordable under Risk Rating 2.0 — the NFIP’s new method for calculating rates. In fact, 54% of active flood insurance policies saw an average rate decrease of $637 when the new rates went into effect in April 2022. 

Flood insurance rates by flood zone in Indiana

Flood insurance rates in Indiana will generally vary depending on where you live and whether or not your house is in a FEMA flood zone, which it determines based on the likelihood of flooding over a period of time. Any A or V zone, for example, has at least a 1% chance of flooding during any given year. 

Also referred to as a “100-year flood plain,” these areas have the highest flood risk, according to FEMA flood maps. Here are the average flood insurance rates in areas with a high risk, moderate to low risk, and undetermined risk, according to an analysis of NFIP premium data. [1]

Flood zoneAverage annual cost
High risk (A or V)$1,553
Moderate to low risk (B, C, or X)$693
Undetermined risk (D)$989

How to find out if your home is in a high-risk flood zone

To find out if your current or future house is in a FEMA-designated flood plain, consult the agency’s Flood Map Service Center. These maps can help you make an informed decision about where to live, what to build, and can help you determine whether or not you’ll need flood insurance.

What does flood insurance cover in Indiana?

Flood insurance helps cover the cost of flood damage to your home and belongings. That means if your house is damaged due to flash flooding, river overflow, or any source of natural flooding, flood insurance can pay to repair or replace your property. 

A standard flood insurance policy through the NFIP comes with two main coverages that can be purchased together or individually.  

  • Building property coverage: Pays to repair or rebuild your house or garage if they’re damaged in a flood. The maximum building property coverage limit with the NFIP is $250,000, meaning that’s the most the NFIP will reimburse you for repairs, regardless of the damage amount.

  • Personal property coverage: Pays to repair or replace your belongings if they’re damaged in a flood. This includes your furniture, electronics, clothes, and any other items you own. The maximum personal property coverage limit with the NFIP is $100,000.

Each coverage also comes with its own separate out-of-pocket deductible, which is the amount you’re responsible for paying on each claim. Choosing a higher deductible will lower your flood insurance premium, but it will also reduce your claim payment.

Covered by NFIP flood insurance

  • Your home’s structure, including electrical and plumbing systems

  • Built-in appliances like refrigerators and dishwashers

  • Personal belongings like clothing, furniture, and electronics

  • Expensive valuables (up to $2,500)

  • Detached garages 

  • Debris removal

Not covered by NFIP flood insurance

  • Home or personal property damage caused by mold, mildew, or moisture

  • Currency, precious metals, and valuable papers

  • Belongings outside of your home, such as trees, plants, decks, hot tubs, etc

  • Any belongings in your basement

How to buy flood insurance in Indiana

Indiana residents can go one of two routes to buy flood insurance: the NFIP, which is regulated and backed by the federal government and sold by insurance companies, or private flood insurance.

Private flood insurance vs. NFIP coverage

Private flood insurance generally gives you the option for higher coverage limits beyond the relatively low $250,000/$100,000 in coverage you’re limited to with the NFIP. 

Additionally, private flood policies include coverages and perks that aren’t available through the heavily regulated NFIP. This includes loss of use coverage to help cover the cost of lodging or restaurant meals in the event your house is badly damaged and you’re forced to evacuate; or replacement cost coverage for your personal belongings. 

Here’s a look at what Indiana residents can expect with NFIP and private flood insurance.

NFIPPrivate flood insurance
Maximum home rebuild limit$250,000Typically up to $500,000 or higher
AvailabilityEvery county in IndianaMay be limited in higher-risk areas
Waiting period30 daysAs little as two weeks
Accepted by mortgage lendersYesYes
Replacement cost building coverageYesYes
Replacement cost contents coverageNoYes
Loss of use coverageNoYes
Loss avoidance coverage (sandbags, etc.)NoYes
Debris removal coverageYesYes

Flood insurance helps fill an important coverage gap

Most homeowners insurance policies do not cover water damage caused by flooding, so if you live in a flood-prone area of Indiana, particularly along the east or west fork of the White River, you should consider purchasing flood insurance.

Do I need flood insurance in Indiana?

While you aren’t legally required to buy flood insurance in Indiana or anywhere else in the country, if your home is one of the nearly 100,000 in Indiana in a FEMA-designated high-risk flood zone, your mortgage lender may require it as a stipulation in your loan agreement. 

But even if your lender doesn’t require it, homeowners in flood-prone areas of Indiana will want to consider this important piece of financial protection. While only around 4% of Indiana homes are located in Special Flood Hazard Areas, around 25% of all flood insurance claims come from moderate- to low-risk areas, according to FEMA. [2]  

Here’s a look at the total number of housing units and the percentage of all homes in high-risk flood zones for each county in Indiana.

Regardless of which flood zone you live in, you’ll want to make sure you’re finding the best flood insurance at the most affordable rate. For the best flood insurance policy comparison, consider comparing both NFIP and private flood insurance plans with Policygenius. 

Our team of licensed insurance agents at Policygenius can help you compare policies and find the best option for you. Click the calculator to get started.

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