Living in Indiana you may breathe the 500, the Colts, and the Hoosiers. But living there also requires dealing with some pretty volatile weather. Whether it's an unusual October tornado outbreak like those that hit in 2007, or the June flood that ravaged the center of the state in 2008, Indiana has its share of weather-related disasters. Even far away events can bring disasters like the flooding effects of Hurricane Ike which is listed as the second most significant flood insurance payout in history. With the unpredictable nature of the weather, selecting the best home insurance is also important. You want the right coverage at a good price. And while shopping for Indiana house insurance rates isn't as exciting as watching Peyton throw touchdowns, saving money can be pretty satisfying. Let's look at how to do that.

Indiana House Insurance Q & A
According the National Association of Insurance Commissioner's 2007 report, Indianans paid an average homeowner's premium of $647. So what does a basic Indiana home insurance policy look like? Here are the basic coverages for a standard policy:

  • Dwelling- pays for repair or replacement of home and unattached structures like garages and sheds due to perils like fire and lightning.
  • Personal Property (PP) - covers theft and damage for the contents of your home. This usually from 50% to 70% of the amount in dwelling coverage.
  • Liability- coverage from $100,000 up to $1 million covers you in the event you're found legally responsible for someone else's injury.
  • Medical Payments- coverage from $500 to $5,000 pays for medical bills of persons injured on your property.
  • Loss of Use or Additional Living Expense- pays additional living expenses in the event your house is unlivable due to a peril such as fire.

How do I determine the amount of coverage for my home?
This won't include your property and foundation and isn't the market value or the tax appraised value. A current appraisal is a good starting point. This is what it would cost in today's dollars to rebuild and is usually expressed as a cost per square foot.

What about flood coverage?
A flood policy is a separate policy. Pricing is based on amount of coverage (usually equal to your dwelling coverage and risk). Ask an agent if your property is located in a flood plain. Even low risk areas constitute 25% of flood claims. Rates are determined by your home's risk and the amount of coverage desired. Check floodsmart.gov to see your home's risk.

What is the difference between actual cash value (ACV) and replacement value?
ACV usually applies to personal property coverage and takes depreciation (age, wear, tear) into consideration when calculating for a loss. Replacement cost—usually purchased at a higher premium—replaces, repairs, or rebuilds using the same or similar materials without considering depreciation. You'll usually have the option to pick one or the other.

Lowering Your Indiana House Insurance Rates
Insurers offer a variety of discounts—some offered, some not. Here are some ways to save on your Indiana home insurance rates:

  • Home protective devices like dead-bolt locks, smoke detectors, fire extinguishers, automatic sprinklers, burglar/fire alarms, and new plumbing/wiring.
  • New home discounts. The newer the home the lower the risk.
  • Multi-line (home, auto, life) - do they have get more of your business?
  • Senior (55+)
  • Non-smoker
  • Paying in advance vs. making monthly or bi-monthly payments.
  • Payroll deduct payments
  • Military

And finally, the single best way to save on your Indiana home insurance rates is to comparison shop. Let LocalInsurance be your comparison shopper. They'll search the web looking for the best values from agents in your area. It's free, easy and takes just minutes.

If you are interested in learning more about Indiana home insurance, there are a number of resources that are offered by the state. Indiana has a Department of Insurance which can help ensure that you have the appropriate coverage for your home and provide you with useful information when selecting a homeowners insurance policy.