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Checked against official sources · Last reviewed October 13, 2026

What homeowners insurance costs in Indiana: average premium, 2023 $1,259 a year in Indiana vs. $1,737 countrywide · 36th highest of 51 · All states (HO-3 policies; NAIC)

Indiana's market right now

Storm moratorium (August 2026). On August 13, 2026, Governor Braun issued Executive Order 26-21, declaring a statewide disaster emergency after severe weather, a derecho, tornadoes and flooding that began August 11 and continued through August 16, 2026. On August 17, 2026, the Indiana Department of Insurance (IDOI) issued Bulletin 280, calling on all insurers to apply "A 60-day moratorium for cancellation of any insurance policy in effect for any policyholder directly affected by the Disaster Events residing within the State of Indiana," and to suspend late-payment penalties.

What the moratorium is and isn't:

- "This moratorium is not a waiver; it is only an extension of the period in which to pay the premium." After the 60 days, you have to resume payments. IDOI asked insurers to offer a payment plan or more time for the premiums that came due during the moratorium. - It covers only cancellations or nonrenewals for failure to pay premiums "directly as a result of the Disaster Events." A policy can still be cancelled or nonrenewed for other allowed reasons, with the notice the law requires. - The moratorium took effect August 17, 2026, the date of the bulletin, and "will last 60 days," which runs to October 16, 2026. IDOI said it may request an extension "if an extension is deemed appropriate"; as of Oct. 13, 2026, IDOI's bulletin list showed no extension. IDOI also asked insurers to apply the moratorium back to the day before the storms began (August 10, 2026).

IDOI issued similar 60-day moratoriums after tornadoes in March 2024 (Bulletin 274, Delaware, Jefferson and Randolph counties) and in spring 2023 (Bulletin 268).

New consumer protections in 2026. House Enrolled Act 1260, signed March 4, 2026 (Public Law 86-2026), lengthens the nonrenewal notice to 60 days, adds rules for nonrenewals based on aerial images, and delays the start of a rule requiring notice of certain premium increases of more than 10% to January 1, 2027. Details are in the next sections. [3][6][7][8][9]

If your insurer cancels or won't renew

Indiana's law on ending residential policies (Indiana Code 27-7-12) covers policies on a home of up to four units where one unit is the named insured's main residence, and policies on personal property used in a home.

Nonrenewal (ending the policy at the end of its term). The notice must be in writing, mailed to your last known address, and state that the insurer won't renew. If you ask, it must come with "a written explanation of the specific reasons," clear enough "to enable a reasonable lay person to identify the basis for the insurer's decision without further inquiry."

- Policies issued or renewed before January 1, 2027: the insurer must mail the notice at least 20 days before the policy period ends. - Policies "issued, delivered, amended, or renewed on or after January 1, 2027": at least 60 days. This change came from House Enrolled Act 1260 (2026). - If no notice is sent: coverage is considered renewed for the next policy period, on the same terms, once you pay the premium, unless you took other coverage or agreed to the nonrenewal. - No nonrenewal notice is needed if the insurer moves you to an affiliated company with the same or broader coverage, or if it offered to renew and you didn't respond. - If an independent agent sold you the policy, the insurer must mail the agent the notice at least 10 days before mailing it to you, unless the agent waives that in writing.

Cancellation (ending the policy during its term). The notice must be in writing, state the effective date, and come with a written explanation of the specific reasons if you ask. Minimum notice:

After a policy has been in effect more than 60 days, or after a renewal takes effect, an insurer may cancel only for: nonpayment; fraud or material misrepresentation in getting the policy, keeping it or making a claim; willful or reckless acts that increase a hazard; a change in the risk that substantially increases a hazard; a fire, health, safety, building or construction code violation that substantially increases a hazard; a finding by the insurance commissioner that keeping the policy would break Indiana insurance law; or property taxes delinquent for two or more years.

Reasons an insurer may not use to cancel or nonrenew: your race, religion, nationality, ethnic group, age, sex or marital status; solely your lawful occupation; the age or location of your home, unless for a business purpose that is "not a mere pretext"; the fact that another insurer turned you down or dropped you; or the fact that you "previously obtained insurance coverage through a residual market insurance mechanism," such as the FAIR Plan.

Aerial images (from January 1, 2027). If an insurer nonrenews you based solely on aerial images, the notice must explain how to ask to see the images, which "must have been taken within the past twenty-four (24) months." The insurer must have an appeal process, give you "at least sixty (60) days to cure" the problems it identified, and offer to renew if you prove you fixed them.

Big premium increases (from January 1, 2027). For homeowners policies issued, delivered, amended or renewed on or after January 1, 2027, Indiana Code 27-2-28 requires written notice of a "material change," defined as "a premium increase of more than ten percent (10%) over and above the increases in the insurer's filed rate plan." The notice must explain the main factors or tell you that you can ask for them. You have 30 days to ask, and the insurer has 45 days to answer in writing. The law does not count increases in the insurer's filed rates themselves, changes you ask for (such as added coverage), or changes resulting from a property inspection.

See our nonrenewal guide for what to do next. [1][2][3][10]

Last resort: the Indiana FAIR Plan

The Indiana Basic Property Insurance Underwriting Association, "also known as the FAIR Plan," was set up in 1968 to make property insurance available to people who can't get it in the normal market. It is "a voluntary association comprised of insurance companies that are licensed to write property insurance in the State of Indiana" and is meant to be "a last resort to obtain basic property insurance."

- It offers dwelling and commercial insurance to Indiana residents "who have been declined coverage by at least three non-related Insurance Companies," and you must show three new declinations at each yearly renewal. - You apply through any licensed Indiana agent. No coverage is in place until the plan approves the application in writing. - Every property is inspected. - The most it covers on a dwelling is $250,000, and it pays actual cash value, not replacement cost.

Full details are on our Indiana FAIR Plan page, or call the plan at (317) 692-0559. [4][11][12]

Mine subsidence coverage in southwestern Indiana

IDOI says the state's Indiana Mine Subsidence Insurance Fund "protects home and business owners in 26 affected counties in southwestern Indiana along the Illinois Coal Basin." Mine subsidence means the collapse of an underground coal mine that damages a building.

- Standard policies don't cover it; "you must purchase mine subsidence insurance as an addition to your current policy." You can add it to your homeowners policy at any time through your agent, but the home must be insured before any damage happens. - Coverage goes up to $500,000 per structure. The deductible is 2% of the structure's insured value, at least $250 and at most $500. - It does not cover land, trees, crops or the contents of the building. - The 26 counties are Clay, Crawford, Daviess, Dubois, Fountain, Gibson, Greene, Knox, Lawrence, Martin, Monroe, Montgomery, Orange, Owen, Parke, Perry, Pike, Posey, Putnam, Spencer, Sullivan, Vanderburgh, Vermillion, Vigo, Warren and Warrick.

The Indiana FAIR Plan also lists mine subsidence as optional by endorsement. [13][14][15]

Flood is separate

Indiana law requires that if your homeowners policy does not cover flood damage, the policy or a written notice must tell you "that coverage for flood damage may be available through the National Flood Insurance Program." For flood zones and flood insurance, see our sister site FloodHawk. [16]

Where to get help

IDOI requires complaints against insurance companies in writing. You can file through its Online Consumer Complaint Portal, which IDOI calls "the preferred & most efficient method," or print the complaint form from its complaint page and mail or fax it:

- Mail: IDOI, Attn: Consumer Services Division, 311 W. Washington Street, Suite 300, Indianapolis, IN 46204-2787 - Fax: (317) 234-2103 - Phone (Consumer Services): (800) 622-4461 or (317) 232-2395

What happens next, according to IDOI: your complaint is typically processed within 72 hours, and you get a letter with a problem report number and the name of the consultant handling it. IDOI sends your complaint to the company, which "has 20 business days to respond in writing." You then get a copy of the company's response with IDOI's. Complaints become public record.

IDOI generally can't help with a policy issued in another state; contact that state's regulator. [5]

Questions people ask