Best homeowners insurance in Indianapolis, IN for 2022

We looked at average costs, coverages availability, and customer satisfaction ratings to find the best homeowners insurance companies in Indianapolis.

Jessica Olivo

By

Jessica Olivo

Jessica Olivo

Freelance contributor

Jessica Olivo is a writer living in Connecticut. She specializes in web and blog content in a variety of topics such as parenting, business, and culture, as well as serialized and short fiction.

After working in publishing and book publicity for many years, she transitioned to freelance writing full time.

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This article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.

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Pat Howard

Pat Howard

Managing Editor & Licensed Home Insurance Expert

Pat Howard is a managing editor and licensed home insurance expert 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.

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Indianapolis residents have to deal with a variety of natural hazards, making homeowners insurance a must in the city. From ice and snow storms in the winter to tornadoes and heavy rain in the spring and summer, there is always a chance severe weather can cause damage to your home. 

The average cost of homeowners insurance in Indianapolis is $2,146 per year or $179 a month. This is around 5% higher than the statewide average of $2,045 per year, and about 13% higher than the national average of $1,899. 

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However, cost isn’t the only factor to consider when choosing a home insurance company. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Indianapolis.  

Best homeowners insurance companies in Indianapolis

Of the companies we looked at, Allstate has the lowest home insurance rates in Indianapolis, with an average yearly cost of $992 — $1,154 less than the citywide average. 

Customer service can often be as important as price, however, and State Farm, Allstate, and American Family all have high scores with J.D. Power, which rates companies based on customer and claim satisfaction. 

Policygenius analyzed thousands of quotes from the 5 largest Indianapolis insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Indianapolis residents to find the best homeowners insurance in Indianapolis.

Company

Average yearly cost

J.D. Power Rating

State Farm

$1,963

835

Allstate

$992

829

Indiana Farm Bureau Insurance

$4,223

--

American Family

$1,395

831

Erie

$1,358

--

State Farm

State Farm logo

There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.

Pros

  • Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage

  • Get up to $1 million in personal liability coverage

  • Score discounts for bundling, installing security devices, and choosing a high deductible

  • File and track claims online, over the phone, in person, or through its mobile app

  • High customer satisfaction and financial strength ratings

Cons

  • No discounts for first-time homebuyers or going a year without a claim

Why State Farm tops our best list

State Farm’s consistently high customer satisfaction ratings make it a great option in Indianapolis. Customers can file claims online, through the app, over the phone, and in person; its convenient and efficient mobile app is a great resource; and its website offers helpful tips and advice for homeowners.

How to get a quote

Online through State Farm

Allstate

Allstate logo

Allstate's mix of exceptional customer satisfaction ratings, personalized coverage options, and numerous discount opportunities make it one of the most popular homeowners insurance companies on the market.

Pros

  • Several coverage add-ons, including ones for roof surfaces, water backup, green improvements, and mold protection

  • 8+ discounts, including autopay, bundling, zero claims, and new homebuyer

  • Get up to 25% off your premiums when you bundle home and auto insurance

  • Excellent customer service and claims satisfaction ratings

  • File and track claims online or through its mobile app

Cons

  • Rates are typically high compared to competitors

Why Allstate tops our best list

Even with the lowest average home insurance rates in Indianapolis, Allstate offers customers the opportunity to save even more on coverage. By bundling home and auto together, you can save an additional 25% on your policies, lowering their average yearly rate down to $744 — $1,402 less than the city average.

How to get a quote

Online through Policygenius or Allstate

Indiana Farm Bureau Insurance

Indiana Farm Bureau Insurance logo

Indiana Farm Bureau Insurance offers a solid mix of home insurance coverage and personalized customer service — including an inflation protection program that automatically adjusts your coverage limits to keep up with rising construction costs.

Pros

  • High-quality coverage add-ons, including inflation protection and short-term rental insurance

  • Score discounts for zero claims, paying your premiums in full for the year, having a newish home, and more

  • Save 18% on your auto insurance and 20% on your home insurance when you bundle the policies together

  • Exceptional customer service ratings

  • Low rate of customer complaints

Cons

  • Farm Bureau membership required for coverage

  • Not much information about specific coverage offerings available online

Why Indiana Farm Bureau tops our best list

Indiana Farm Bureau offers a variety of additional coverage options for Indianapolis homeowners. If you run your business out of your home, you can add business liability coverage and revenue protection onto your homeowners insurance. It also offers extra coverage to homeowners who rent their homes out through Airbnb and similar companies.

How to get a quote

Online through Indiana Farm Bureau 

American Family

American Family logo

American Family's status as the 7th largest home insurance provider in the U.S. speaks to its popularity and reputation. Our fave perk? Its diminishing deductible program that lets you earn credits for every year you go without filing a claim.

Pros

  • Unique coverage add-ons, like matching siding insurance and hidden water damage coverage

  • Save up to 20% on home insurance and 29% on auto insurance for bundling the policies together

  • Earn a $100 credit toward your deductible for ever year you go without filing a claim

  • File claims online or on its mobile app — with 24/7 claims support

Cons

  • Doesn't offer extended or guaranteed replacement cost coverage

  • Above-average customer complaints according to the NAIC

Why American Family tops our best list

The MyAmFam mobile app offers customers a convenient way to manage policies via mobile phones or handheld tablets. You can file and track claims, view ID cards, and even make a payment when you’re on the go, making it even easier to access your home insurance.

How to get a quote

Online through American Family

Erie

Erie logo

With some of the best customer service ratings in the industry, Erie offers comprehensive coverage even with its most basic policy — including guaranteed replacement cost coverage and protection for lost items.

Pros

  • Score up to a 25% discount when you bundle your home and auto insurance

  • Guaranteed replacement cost coverage is included in the base policy

  • Theft coverage includes lost or misplaced items — a rare perk we don't see often

  • Multiple policy add-ons available, including water backup and service line coverage

  • Among the best customer service ratings in the industry

Cons

  • Can't file claims online — must speak to an Erie agent on the phone

Why Erie tops our best list

Erie’s guaranteed replacement cost ensures that your home is completely covered. Whereas some companies only provides basic replacement cost dwelling coverage, Erie will cover the entire cost to rebuild your home after a covered loss, regardless of the cost.

How to get a quote

Online through Erie

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Cheapest homeowners insurance companies by ZIP code in Indianapolis

Looking at average home insurance costs for 15 of the most popular companies in Indianapolis, we found that the cheapest home insurance in the city can be found in the 46235 ZIP code (Indianapolis) with Allstate. The average Allstate rate in this area is $896 per year — $1,250 less than the city average of $2,146 per year. 

While Allstate has the cheapest rates in almost every neighborhood in the city, Erie has the best rates in the 46204 and 46216 ZIP codes. 

ZIP code

Company

Average yearly cost

46201

Allstate

$1,072

46202

Allstate

$1,073

46203

Allstate

$1,073

46204

Erie

$965

46205

Allstate

$1,067

46208

Allstate

$1,036

46214

Allstate

$962

46216

Erie

$981

46217

Allstate

$924

46218

Allstate

$994

46219

Allstate

$977

46220

Allstate

$1,035

46221

Allstate

$992

46222

Allstate

$1,036

46224

Allstate

$939

46225

Allstate

$1,041

46226

Allstate

$972

46227

Allstate

$999

46228

Allstate

$1,036

46229

Allstate

$964

46231

Allstate

$918

46234

Allstate

$962

46235

Allstate

$896

46237

Allstate

$953

46239

Allstate

$1,063

46240

Allstate

$967

46241

Allstate

$907

46250

Allstate

$999

46254

Allstate

$939

46256

Allstate

$925

46259

Allstate

$974

46260

Allstate

$968

46268

Allstate

$1,009

46278

Allstate

$962

46280

Allstate

$968

46282

Allstate

$1,041

46290

Allstate

$946

The most affordable areas for homeowners insurance in Indianapolis

With an average home insurance rate of $1,987 per year, the 46256 ZIP code (Castleton), is the most affordable area for home insurance in Indianapolis. Smaller, moderately valued homes will cost less to insure and most homes in this area are 1 to 2 bedrooms with home values between $100,000 and $400,000.

ZIP code

Average yearly cost

46256

$1,987

46290

$2,009

46280

$2,011

46250

$2,020

46216

$2,023

The most expensive areas for homeowners insurance in Indianapolis

With an average home insurance rate of $2,414, the 46282 ZIP code is the most expensive area for home insurance in Indianapolis. Many homes in these areas were built before 1940, which makes them more expensive to insure due to the cost and increased need of repairs.

ZIP code

Average yearly cost

46282

$2,414

46201

$2,308

46208

$2,262

46203

$2,257

46254

$2,242

Shopping for homeowners insurance in Indianapolis

If you need help shopping for homeowners insurance, a licensed Policygenius agent can answer your questions and make sure you know what to look for in a policy. From getting the right amount of dwelling coverage to picking a deductible that fits your budget, Policygenius will provide the help you need. 

In this section, we break down the average annual home insurance rates in Indianapolis for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with a poor credit score, dog owners, and pool owners. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in Indianapolis.

Indianapolis home insurance costs by coverage amounts

Dwelling coverage is the portion of your policy that pays to repair or rebuild your house after a covered loss. Your dwelling limit should be based on your home’s replacement cost rather than its market value or purchase price. 

The more dwelling coverage you have, the higher your overall rate will be. In Indianapolis, a policy with $100,000 in coverage costs $1,122, while a policy with $300,000 costs $2,146 — a difference of $1,024.

Dwelling coverage amount

Average yearly cost

$100,000

$1,122

$200,000

$1,628

$300,000

$2,146

$400,000

$2,658

$500,000

$3,204

Liability insurance covers medical bills and legal expenses in the event you’re legally responsible for someone else’s injury. Since these expenses can add up, you’ll want to make sure your liability coverage limit is high enough to cover your combined assets, including your house, vehicles, and any liquid assets.

Liability coverage amount

Average yearly cost

$100,000

$2,184

$200,000

$1,631

$300,000

$2,146

$400,000

$1,525

$500,000

$2,254

Indianapolis home insurance costs by deductible amount

Your deductible is the amount you’re responsible for paying on each claim before your home insurance kicks in. 

As seen in the table below, a higher deductible generally means lower home insurance rates. Indianapolis residents can save around $290 on home insurance by choosing a $2,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$2,275

$1,000

$2,146

$2,000

$1,985

Home insurance discounts in Indianapolis

Insurance companies have discounts available if you add protective features to your house. By installing a burglar alarm, smoke detector, deadbolt lock, or other safety devices, you are making your home safer and reducing the chances you’ll need to file a claim. With Indianapolis’ high crime rates, these added protections can also give you peace of mind.

While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in Indianapolis with deadbolts, smoke alarms, or burglar alarms. 

Discount

Average yearly cost

Dead bolt

$2,146

Smoke alarm

$2,142

Burglar alarm

$2,127

Home insurance companies in Indianapolis for dog owners

Insurance companies may charge higher home insurance rates to owners of certain dog breeds, as these breeds are considered to be a liability risk due to the risk of attacks and bites. 

With an average rate of $992 per year, Allstate has the cheapest home insurance rates in Indianapolis for a home with a dangerous dog breed, while Indiana Farm Bureau's average yearly premium of $4,223 is the highest. 

Company

Average yearly cost

Allstate

$992

Erie

$1,358

American Family

$1,405

State Farm

$1,963

Indiana Farm Bureau Insurance

$4,223

Home insurance companies in Indianapolis for poor credit

Insurance companies look at a version of your credit score to determine if you are a high risk to insure. Typically, customers with low credit have trouble paying bills on time and may be more likely to file insurance claims rather than pay for repairs out of pocket. 

With an average rate of $1,466 per year, Allstate has the cheapest home insurance rates in Indianapolis for a homeowner with poor credit, while Indiana Farm Bureau's average yearly premium of $6,281 is the highest. 

Company

Average yearly cost

Allstate

$1,466

American Family

$2,238

Erie

$2,503

State Farm

$3,368

Indiana Farm Bureau Insurance

$6,281

Home insurance companies in Indianapolis for pool owners

Your insurance company may also charge you higher rates if you have a swimming pool on your property, since it increases the risk of injuries and liability claims. 

With an average rate of $992 per year, Allstate has the cheapest home insurance rates for Indianapolis homes that have a swimming pool, while Indiana Farm Bureau's average yearly premium of $4,223 is the most expensive.

Company

Average yearly cost

Allstate

$992

American Family

$1,403

Erie

$1,501

State Farm

$1,963

Indiana Farm Bureau Insurance

$4,223

How to buy homeowners insurance in Indianapolis

Buying homeowners insurance comes down to finding the coverage you need for a price you can afford. If you live in Indianapolis, you should have enough coverage in case a tornado or severe storm causes massive damage to your home. 

Here are some additional tips to help you shop for insurance:

  1. Reach out to a licensed Policygenius agent. If you have questions about anything from coverage limits to comparing quotes, a Policygenius agent is available at no cost to you.

  2. Ask about the Indiana FAIR plan. If you’ve been rejected by other insurance companies, the Indiana FAIR plan offers last resort home insurance coverage.

  3. Consider purchasing flood insurance. Floods can cause expensive damages to your house and are typically not covered by homeowners insurance.

  4. Compare quotes from a Policygenius agent. If you need help determining which quote is best for you, a Policygenius agent can help.

  5. Choose your policy, sign it, and pay your first premium. When you’ve found the right coverage for the best price, a Policygenius agent can complete the paperwork and cancel your old policy. All you have to do is make your first payment.

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Frequently asked questions

How long does a home insurance claim take in Indiana?

There is no set amount of time that insurance companies are required to process your claim in Indiana, so it can take from a few days up to several months to receive your payment.

How much is home insurance per month in Indiana?

The average cost of homeowners insurance in Indianapolis is $179 a month, which is about $2,146 per year.

How can a homeowner reduce the cost of homeowners insurance?

You can reduce costs by making sure your coverage limits are correct, having a higher deductible, looking for eligible discounts, and by shopping around and comparing quotes.

Does home insurance go down if I pay off my house?

In some cases, yes, home insurance companies will offer discounts to customers who have paid off the entirety of their mortgage balance.

Methodology

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

  • Dwelling: $300,000

  • Other structures: $30,000

  • Personal property: $150,000

  • Loss of use: $60,000

  • Liability: $300,000

  • Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Author

Freelance contributor

Jessica Olivo

Freelance contributor

Jessica Olivo is a writer living in Connecticut. She specializes in web and blog content in a variety of topics such as parenting, business, and culture, as well as serialized and short fiction.

After working in publishing and book publicity for many years, she transitioned to freelance writing full time.

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