By the Yellow Ribbon Insurance team · Bill Cline, Licensed Insurance Agent
The published Indiana averages side by side, who measured what, why they disagree, and the things that actually set the price on your house.
Quick answer
The lowest credible published figure for homeowners insurance cost in Indiana is $1,191 a year: the NAIC's 2022 average for a standard HO-3 policy. Other named sources put Indiana at $1,473 (NAIC market data on HO-3 and HO-5 policies, 2022) and about $2,979 (Consumer Federation of America test quotes for a $350,000 home, 2024, as summarized by the Fair Housing Center of Central Indiana). None of them is a quote for your home.
- The spread is the story. The low figures are what Indiana policyholders actually paid on average; the high one prices a single sample house at 2024 rates.
- All three sources put Indiana below the national figure.
- Your own price turns on rebuild cost, construction, roof, location, claims history, deductibles, add-ons and, where it's used, a credit-based insurance score.
- Indiana law limits how insurers use credit: never as the only reason to deny, cancel or nonrenew a policy.
Do this: get a quote on your actual house with your declarations page in hand, and ask what each deductible choice and add-on is costing you.
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You're budgeting for a house, or your escrow statement just jumped, and every website seems to give a different number for Indiana homeowners insurance. One source says one thing. Another says more than twice as much. They're mostly not wrong; they're measuring different things. This guide lines up the published Indiana figures side by side, shows who produced each one and how, explains why they disagree, and walks through what actually sets the price on your house. It builds on our Indiana home insurance guide, which covers what a policy does; this one is all about cost.
Indiana homeowners insurance cost: key figures
| Average HO-3 premium, 2022 | $1,191 in Indiana vs. $1,569 nationallyNAIC data, via the Insurance Information Institute |
|---|---|
| Premium per policy, HO-3 + HO-5, 2022 | $1,473 in Indiana vs. $1,915 nationallyNAIC market data, via the Federal Reserve Bank of Chicago |
| Test quotes, $350,000 home, 2024 | About $2,979 in Indiana, up 16% since 2021Consumer Federation of America, summarized by the Fair Housing Center of Central Indiana |
| Credit-based insurance scores | Allowed in Indiana, with limitsIndiana Code 27-2-21-16 |
| Wind/hail deductibles | Where a policy has a separate wind/hail deductible, commonly 1% to 5% of the home's insured valueInsurance Information Institute |
What do published sources say Indiana homeowners pay?
The short answer: The lowest credible published figure is $1,191 a year, the NAIC's 2022 average for a standard HO-3 policy in Indiana, while other named sources put the Indiana average at $1,473 and an average test quote of about $2,979.
Indiana's average HO-3 homeowners premium in 2022, 35th-highest among the 50 states and D.C., versus $1,569 nationally. Source: NAIC data published by the Insurance Information Institute. Checked September 2026. A statewide average, not a quote.
Here are the three figures we trust enough to publish, and what each one measures. Read the "sample" column first.
| Indiana figure | Who | What it measures | Sample | Data year |
|---|---|---|---|---|
| $1,191 | NAIC | Premiums actually written, divided by house-years | Owner-occupied HO-3 policies reported to the NAIC | 2022 |
| $1,473 | NAIC market data, analyzed by the Chicago Fed | Written premium per policy in force | Owner-occupied HO-3 and HO-5 policies, no condos | 2022 |
| About $2,979 | Consumer Federation of America (Indiana dollars via FHCCI) | Test quotes, not premiums paid | One profile: $350,000 replacement value, mid-tier credit | 2024 |
$1,191: what Indiana HO-3 policyholders actually paid
The National Association of Insurance Commissioners collects the premiums insurers wrote and the number of homes they covered in each state. Its report defines the average as premiums divided by exposures, where one "house-year" is a year of coverage on one dwelling. The Indiana number covers HO-3 policies, the most common homeowners package, on owner-occupied one- to four-family homes of every size and in every ZIP code.
It's real money paid, but dated: the 2022 data was released in May 2025. The NAIC has since published a 2023 edition (July 2026); the Insurance Information Institute's table still showed 2022 when we checked. Because premiums kept rising after 2022, treat $1,191 as a dated baseline, not today's price.
$1,473: premium per policy, including HO-5
In June 2026, Andy Polacek and Robin Newberger of the Federal Reserve Bank of Chicago analyzed ZIP-code data that state regulators and the Treasury's Federal Insurance Office gathered through an NAIC data call. It counts written premium per policy in force at year-end, as the Treasury's January 2025 report describes it, for owner-occupied HO-3 and HO-5 policies, excluding condos. On that measure, Indiana averaged $1,473 in 2022, against $1,915 nationally.
About $2,979: test quotes for one sample house
The Consumer Federation of America's April 2025 report, "Overburdened," is built from test quotes collected in August 2024 through Quadrant Information Services, from six of the largest insurers in each state, for nearly every ZIP code. Every quote assumes the same home: a $350,000 replacement value and a homeowner with a mid-tier credit score. The CFA weighted each insurer by market share and each ZIP code by its number of homeowners.
The Fair Housing Center of Central Indiana's June 2025 report summarizes the Indiana result as $2,979 for 2024. The national figure on the same basis was $3,303.
Many consumer-finance websites publish their own Indiana "averages," usually built the CFA's way from one sample house, so their number moves with the house they picked.
Why do published Indiana home insurance averages disagree?
The short answer: They measure different things: what every Indiana policyholder actually paid versus what one sample house would be quoted, across different policy types, home values and years.
The highest figure is about two and a half times the lowest. Most of that gap comes from three choices each source made.
- Paid or quoted. The NAIC figures are premiums insurers actually wrote, averaged over every home they covered, whatever it would cost to rebuild. The CFA figure is what insurers would quote one standardized $350,000 house.
- Which policies. The $1,191 figure is HO-3 only, averaged per house-year. The $1,473 figure adds HO-5 policies to the mix and averages per policy in force at year-end.
- Which year. Two figures are 2022; the test quotes are 2024. Prices rose in between, as the next section shows.
The NAIC is candid about the limits of its own number. Its report calls average premium "an imperfect measure of the relative 'price' of insurance due to wide variations in hazards, economic conditions, and real estate values," and adds that even identical policies with identical coverage amounts can be priced very differently from place to place.
There's one thing all three agree on: Indiana comes in below the national figure. That's $1,191 against $1,569 on the NAIC's HO-3 measure, $1,473 against $1,915 on the per-policy measure, and about $2,979 against $3,303 on the CFA's test quotes.
How to read any average you find: ask four questions. Is it premiums paid or quotes? Which policy type? What home value and deductible? What year? If a page can't answer all four, don't budget off it.
Bill Cline
Licensed insurance agent · Veteran · Licensed since 2018
Bill owns Yellow Ribbon Insurance in New Albany. More about Bill.
How much have Indiana homeowners insurance costs risen?
The short answer: Both sources that break out Indiana show premiums climbing, with NAIC market data up 21% from 2018 to 2022 and CFA test quotes up 16% from 2021 to 2024, both somewhat slower than the national increase.
| Source | Indiana | National | Period |
|---|---|---|---|
| NAIC market data, via the Chicago Fed | $1,215 → $1,473 (+21%) | $1,514 → $1,915 (+26%) | 2018–2022 |
| CFA test quotes (April 2025); Indiana dollars as summarized by FHCCI | $2,567 → about $2,979 (+16%, 31st-largest percentage increase in CFA's state table) | $2,656 → $3,303 (+24%) | 2021–2024 |
| NAIC homeowners report (May 2025) | Not broken out | HO-3 average +11.26% in one year | 2021–2022 |
| U.S. GAO (GAO-26-107867) | Not broken out | $2,235 → $2,829 (about +27%); +3% after inflation. First Street estimates for a standardized policy, not premiums paid | 2019–2024 |
Indiana's increases ran a bit below the national pace in both datasets that break out states. And the Government Accountability Office's February 2026 report found that, adjusted for inflation, the national average premium rose just 3% from 2019 to 2024; its title says premiums "generally tracked inflation but rose more in disaster-prone areas."
The increases don't land evenly. The Chicago Fed found that in 2022, households in Indiana's lowest-income ZIP codes spent about 2.4% of median income on homeowners insurance, compared with about 1.5% in the highest-income ZIP codes.
What actually sets the price of an Indiana homeowners policy?
The short answer: Your rebuild cost and the coverage you choose set the base, and the home's construction, age, roof, location, claims history and, where the insurer uses one, a credit-based insurance score move it from there.
The NAIC's report puts the base plainly: a homeowners premium is determined by the amount of insurance you buy, the property covered, the perils covered, and the limits and deductibles you choose. Its consumer guide lists the features of the house that move the price. These six do most of the work:
Rebuild cost
What it would cost to rebuild, which the NAIC stresses is not the purchase price. It sets your dwelling limit, the biggest single driver.
Construction
The NAIC says premiums are usually lower for homes that are mainly brick or masonry than for wood frame.
Age and condition
Older homes and homes in poor condition often cost more to insure than newer ones in good shape.
Roof
The NAIC report singles out roofing prone to hail and lightning damage, such as wood shingles, as a feature that can raise premiums.
Location and fire protection
Distance to a fire department or water source, the quality of local fire protection, and exposure to storms.
Claims history
Past claims on the home, by you, and on homes in your area. Most insurers report claims to shared databases such as CLUE.
Indiana weather is part of the location factor. The NAIC lists tornadoes, high winds, hail, freezing rain and snowstorms among the catastrophes that affect what homeowners pay, and it notes that real estate values, building costs, storm exposure and urbanization produce wide price differences "not only by region or state, but on local levels as well." Two similar houses in different Indiana counties can price quite differently for that reason alone. Our guide to home insurance in New Albany shows how that plays out in one Floyd County city.
Some features work in your favor. The NAIC report says security systems and fire detection devices often qualify a home for a discount, and its consumer guide adds updated electrical or plumbing systems, a new roof and storm-proofing. Those discounts may be available; eligibility varies by policy and home.
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Can Indiana insurers use your credit to price home insurance?
The short answer: Yes, Indiana lets insurers use credit information to underwrite and rate a homeowners policy, but state law limits what goes into the score and how it can be used against you.
Indiana allows it under Indiana Code chapter 27-2-21, which the Indiana Department of Insurance explained to insurers in Bulletin 130. Here's what the law says, in plain terms:
- You'll be told. An insurer that uses credit must disclose it when you apply (IC 27-2-21-18).
- Some inputs are off limits. An insurance score can't be calculated using your income, gender, address, ZIP code, ethnic group, religion, marital status or nationality (IC 27-2-21-16).
- Credit can't be the only reason. An insurer can't deny, cancel or decline to renew a personal policy solely because of credit, or set your renewal rate solely on credit.
- Some items can't count against you, including medical-coded late payments or collections, insurance-related credit inquiries, and multiple mortgage-lender inquiries made within 30 days of each other, which count as no more than one inquiry.
- No credit file isn't automatically a penalty. Unless the commissioner has approved another treatment, the insurer has to treat a missing score as neutral.
- You're owed a real reason. If credit leads to an adverse action, the notice must name up to four primary factors in clear language. "Poor credit history" alone doesn't meet the standard (IC 27-2-21-19).
Worth knowing at renewal: if your credit has improved, Indiana law lets you, or your agent on your behalf, ask the insurer at annual renewal to re-rate the policy on a current credit report or score. There are exceptions, for example if you're already in the insurer's best-priced tier, credit wasn't used when the policy was written, or it was re-rated in the last 12 months (IC 27-2-21-16(b)).
How much weight any one insurer puts on credit isn't something we can cite, so we won't guess at a percentage.
How do deductible choices change what you pay in Indiana?
The short answer: A higher deductible lowers the premium, but a separate wind or hail deductible set as a percentage of your insured value can make a storm claim cost far more than the flat deductible on your declarations page suggests.
The Indiana Department of Insurance notes that deductibles can be raised or lowered at the policyholder's option, and that policies with deductibles cost less. The Insurance Information Institute says raising a homeowners deductible above $1,000 can lower the cost of the policy. That trade is only a good one if you could pay the deductible out of savings the week after a storm.
The line people miss is the wind or hail deductible. According to the Insurance Information Institute, wind and hail deductibles are most commonly percentages, typically 1% to 5%, and percentage deductibles are calculated on the home's insured value. With Indiana averaging 22 tornadoes a year, according to the National Weather Service in Indianapolis, that's the deductible worth checking first.
Illustrative scenario
Hail ruins the roof on a home insured for $300,000. The roof costs $12,000 to replace. Here's how much of that the policy would pay under three deductible setups, before any other policy terms.
| Flat $1,000 deductible applies to all perils: $12,000 − $1,000 | $11,000 |
| 1% wind/hail deductible ($3,000): $12,000 − $3,000 | $9,000 |
| 2% wind/hail deductible ($6,000): $12,000 − $6,000 | $6,000 |
Illustrative figures only, not a quote and not a promise of how any claim is paid. How your deductibles apply, and whether the roof is paid at replacement cost or actual cash value, depends on your policy.
A percentage deductible can bring the premium down. Price both versions and decide with the storm-day number in front of you, not only the annual one.
What add-ons and separate policies add to the cost?
The short answer: Water backup, flood, earthquake and mine subsidence coverage are each priced separately, so the premium on your homeowners bill may not be your full cost of protecting the house.
A standard Indiana homeowners policy leaves these gaps open, and closing each one has its own price. The flood, earthquake and mine subsidence section of our state guide explains what each covers; here's how each is bought and what shapes its cost.
| Coverage | How it's bought | What shapes the cost |
|---|---|---|
| Water or sewer backup | An endorsement on the homeowners policy; limited or absent without it, per the NAIC | The limit you pick. Ask for the added premium at more than one limit. |
| Flood | A separate policy; not automatically included, per IN.gov | Where the property is, how it's built and the coverage you buy, per FEMA's FloodSmart |
| Earthquake | An endorsement or separate policy | Deductibles commonly 2% to 20% of the home's replacement value, per the III |
| Mine subsidence | Added to the policy in 26 designated counties | A 2% deductible, minimum $250 and maximum $500, per the Indiana Department of Insurance |
Don't budget off the homeowners bill alone if your home has a basement, sits near a creek or river, or is in a mine subsidence county. In our experience, the water backup limit is one Indiana homeowners often haven't looked at.
How do you get a realistic number for your own Indiana home?
The short answer: Get a quote on your actual house, with your declarations page, roof age, updates and claims history in hand, because no statewide average can price your address, your rebuild cost or your deductibles.
The NAIC's guide lists the basics any quote starts with: location, square footage, year built and construction type. Bring these too:
- Your current declarations page, so limits and deductibles can be matched or deliberately changed
- Roof age and material, and the years the electrical, plumbing and heating were updated
- Alarms, fire detection and recent claims
- Anything you want priced separately: water backup, flood or earthquake
Then ask for the price of the choices, not only the total: the premium at two deductible levels, the wind/hail deductible, and each add-on on its own. Ask which discounts may be available, such as combining home and car insurance (our bundling guide explains how that works); eligibility varies. For the car side, see our guide to car insurance cost in Indiana. If you're buying your first home, our first-time homeowner guide covers what to settle before closing.
On the state side, the Indiana Department of Insurance's property-insurance page offered no homeowners price comparison when we checked in September 2026; it points consumers to the NAIC's consumer guide to home insurance. For questions or problems with an insurer, the department takes consumer complaints online or at 1-800-622-4461.
That's what a free coverage review with our New Albany office is for: your house, your numbers, and a clear look at what each line of the policy costs. You can see the coverages we write on our home insurance page.
Bottom line
In short: published Indiana homeowners insurance averages run from $1,191 to about $2,979 depending on who measured what, and none of them is your price.
The NAIC's $1,191 (HO-3, 2022) reflects what Indiana policyholders actually paid; the CFA's roughly $2,979, as summarized by FHCCI, prices one $350,000 house at 2024 rates. All three put Indiana below the national figure; the two with Indiana trend data show premiums rising. Your number comes from your rebuild cost, construction, roof, location, claims, deductibles, add-ons and, where it's used, credit. Get it priced on your actual house, and look at the storm-day deductible as closely as the annual premium.
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Frequently asked questions
Is homeowners insurance cheaper in Indiana than the national average?
On the published data, yes. The NAIC's 2022 HO-3 average was $1,191 in Indiana against $1,569 nationally, and NAIC market data analyzed by the Federal Reserve Bank of Chicago shows $1,473 per policy against $1,915. The Consumer Federation of America's 2024 test quotes for a $350,000 home also came in below the national figure. A below-average state doesn't mean a below-average house, though. Your rebuild cost, construction, roof, location and claims history decide where your own price lands.
How much is homeowners insurance per month in Indiana?
Dividing the published annual figures by 12 gives about $99 a month on the NAIC's 2022 HO-3 average of $1,191, about $123 a month on the $1,473 per-policy figure for 2022, and about $248 a month on the Consumer Federation of America's 2024 test quotes for a $350,000 home, about $2,979 as summarized by the Fair Housing Center of Central Indiana. Those are averages divided by twelve, not quotes. Your own monthly cost depends on your house and the choices on your policy, so treat them as context rather than a budget line.
Will filing a claim raise my homeowners insurance premium?
It can. The NAIC's consumer guide lists the claims history of your home, and of homes in your area, among the factors that affect what you pay. It also notes that most insurers report homeowners claims to shared databases such as the Comprehensive Loss Underwriting Exchange (CLUE). How much a claim affects a renewal depends on the insurer and the kind of claim, and we won't guess at a percentage. For a small loss close to your deductible, talk it through with your agent before you file.
Can I ask for my Indiana home insurance to be re-rated if my credit improves?
Often, yes. Under Indiana Code 27-2-21-16(b), an insurer that uses credit must, at annual renewal and at the request of the policyholder or the agent, re-underwrite and re-rate the policy on a current credit report or insurance score. Exceptions apply: for example, if you're already in the insurer's most favorably priced tier, if credit wasn't used when the policy was first written, if it was re-rated within the last 12 months, or if the insurer reevaluates you at least every 36 months on other factors. Ask before your renewal date.
Are brick homes cheaper to insure than wood frame homes?
Usually. The NAIC's consumer guide says the premium is usually lower for homes that are primarily brick or masonry than for wood frame homes. Construction is only one factor, though. Rebuild cost, the roof, the home's age and condition, its location and fire protection, your claims history and your deductibles all feed into the price, so construction alone won't tell you which house costs more to insure. Tell your agent exactly how the house is built, including any additions, so the quote is priced on the right construction type.