Indiana Homeowners Pay Some of the Lowest Insurance Costs In The Country

Indiana homeowners benefit from some of the lowest homeowners insurance premiums in the nation.

While premiums are rising across climate-vulnerable states such as Florida, Louisiana, and California, new data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Reportshows that Indiana households continue to enjoy relative affordability.

Indiana’s Insurance Costs Stay Affordable

According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Indiana homeowners with a mortgage typically pay $1,000–$1,499 annually for homeowners insurance, while those without a mortgage also average $1,000–$1,499. Statewide overall costs fall into the same $1,000–$1,499 range.

Indiana has 1,962,896 insured homeowner households in total—1,225,914 with a mortgage and 736,982 without. Among mortgaged owners, 139,014 pay less than $100 annually and 38,636 pay $4,000 or more. Among those without a mortgage, 138,307 pay less than $100 and 20,789 pay $4,000 or more.

Compared with nearby states, Indiana sits on the affordable end. Illinois homeowners also average $1,000–$1,499, with similar splits between mortgaged and non-mortgaged households. Michigan homeowners are slightly lower, averaging $1,000–$1,499 with a mortgage and $800–$999 without. Ohio follows the same pattern, with costs in the $1,000–$1,499 range for mortgaged households.

By contrast, Kentucky is also affordable, while Missouri trends a little higher, averaging $1,500–$1,999 with a mortgage. This places Indiana firmly in the low-cost Midwest cluster.

Climate Risks Across the Region

The Realtor.com 2025 Climate Risk Report shows that the steepest insurance burdens fall on southern and coastal metros. Miami tops the list, with average premiums of $22,718 annually, representing 3.7% of median home value. Other Florida metros such as Cape Coral, Sarasota, and Tampa also rank near the top.

Indiana does not appear in the report’s rankings of metros with the heaviest insurance burdens, nor in the lists of severe flood or hurricane exposures. However, the state is not without risk. Severe thunderstorms, tornadoes, and localized flooding affect many communities.

Still, compared with the catastrophic hurricane and wildfire risks that dominate other regions, Indiana’s risks remain manageable, helping keep average costs low.

A National Affordability Challenge

Even with Indiana’s relatively low costs, the national trend points toward growing affordability concerns. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already struggled to obtain or renew coverage.

These rising premiums are shaping how people buy homes. Nearly 30% of buyers said they had completely changed their search areas due to insurance concerns, while another quarter said they had adjusted their strategies altogether. In addition, 58% of homeowners nationwide said they would consider dropping coverage if costs became too high, with younger buyers the most likely to do so.

For Indiana homeowners, affordability remains an advantage compared with more vulnerable states. But as climate risks and insurance challenges spread, even traditionally low-cost states may not remain immune in the long term.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.