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By the end of 2025, the average annual home insurance premium in Indiana was $2,023, according toInsurify’s 2026 Insuring the American Homeowner Report. That’s about 31% lower than the U.S. average of $2,948, but still 17.5% more than the 2023 state average, data shows.
Insurify data scientists expect premiums in Indiana to increase another 3% by the end of 2026, bringing the state’s typical annual cost to $2,082, an increase of $59. The report analyzed a typical Indiana policy for a single-family home with about $322,000 in dwelling coverage.
How Indiana home insurance costs compare
Even with the increase since 2023, Indiana remains one of the more affordable states for homeowners insurance.
The table below shows the average annual home insurance costs for some of the most and least expensive states in 2025, along with Insurify’s projections for 2026.
Severe storms help drive Indiana insurance costs
Weather risks help shape Indiana’s home insurance costs. Homeowners in the state face tornadoes, hailstorms, and severe thunderstorms.
Severe convective storms — including hail, tornadoes, and damaging winds — are the most frequent billion-dollar disasters in the U.S., according to the National Oceanic and Atmospheric Administration.
Hail can cause widespread roof damage, which is among the most common and expensive types of homeowners insurance claims, according to the Insurance Information Institute and Verisk. Indiana is particularly atrisk for hail damage. The state saw the third-most hail events in the U.S. in 2024.
Large storm systems can also generate thousands of claims across affected regions, particularly when tornado outbreaks and damaging winds impact multiple communities at once, elevating the total insurance costs of such events.
What’s next: 2026 forecast for Indiana home insurance
Indiana homeowners will likely see modest increases in insurance premiums through 2026 as insurers respond to higher claims costs and rising construction expenses, according to Insurify’s report.
Across the country, Insurify expects home insurance premiums to rise 4%, on average, increasing the national average from $2,948 in 2025 to $3,057 in 2026.
For Indiana homeowners, the pace of future increases will depend largely on storm activity and rebuilding costs, according to the Insurify report.
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