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.
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.
Methodology & why you can trust our rates
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.
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 | -- |
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
Read our full State Farm home insurance review
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
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 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'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
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
Read our full Erie home insurance review here
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
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:
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.
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.
Consider purchasing flood insurance. Floods can cause expensive damages to your house and are typically not covered by homeowners insurance.
Compare quotes from a Policygenius agent. If you need help determining which quote is best for you, a Policygenius agent can help.
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.
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.
