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Home insurance rates, explained
What Affects Home Insurance Rates in Indiana?
Home insurance pricing can feel like a mystery. Every company uses its own formula, but most look at the same core factors. Here’s what goes into your homeowners rate in Lafayette and across Indiana, and how to keep it in check.
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4.9-star rated on Google
Serving Greater Lafayette since 2011
3111 Builder Dr., Suite 6, Lafayette
Serving Greater Lafayette since 2011
3111 Builder Dr., Suite 6, Lafayette
Rating factors
The biggest factors in your home insurance rate
Your rate reflects how likely a claim is and how much it would cost to repair or rebuild. These are the factors that matter most.
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Cost to rebuild
Your dwelling coverage is based on what it would cost to rebuild your home with similar materials, not its market value. Larger homes and custom features cost more to rebuild.
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Roof age, material and condition
The roof is one of the biggest factors. Older roofs can mean higher rates or actual cash value settlements on roof claims.
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Age and updates of the home
Updated electrical, plumbing and heating systems lower the risk of fire and water damage, which can help your rate.
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Construction type
Brick, frame and other construction types are priced differently based on how they hold up to fire and storms.
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Fire protection
Distance to the nearest fire station and hydrant affects your rate, which is why homes in town and in the country can price differently.
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Claims history
Past claims, both yours and sometimes the property’s, can affect pricing and eligibility.
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Credit-based insurance score
Many companies in Indiana use a credit-based insurance score as one factor. It’s different from a lender’s credit score.
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Deductibles and coverage choices
Higher deductibles lower your premium. Higher limits and added coverages, like water backup or jewelry coverage, add to it.
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Liability exposures
Things like certain dogs, pools and trampolines can affect your price or which companies will insure the home.
Indiana weather
Why Indiana storms matter to your rate
Wind and hail are among the most common home insurance claims in Indiana. That shows up in rates in a few ways.
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Roof coverage
Some policies pay to replace an older roof at actual cash value, which subtracts depreciation. Learn more in ACV vs. replacement cost roof coverage.
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Wind and hail deductibles
Some companies use a separate deductible for wind and hail claims. Make sure you know what yours is before a storm hits.
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Water backup
Heavy rain can overwhelm sump pumps. Water backup coverage is usually an add-on, and it’s worth it for finished basements.
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Flood is separate
Homeowners policies don’t cover flood. If you’re near the Wabash River or a creek, ask about flood insurance.
Ways to save
Smart ways to lower your home insurance rate
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Bundle home and auto
Keeping your home and auto insurance with the same company usually earns a multi-policy discount.
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Tell us about updates
A new roof, updated electrical or plumbing, or a new heating system can help your rate with many companies.
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Consider protective devices
Monitored alarms, smoke detectors and water leak sensors can earn credits with some companies.
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Choose the right deductible
A higher deductible lowers your premium. Pick an amount you could comfortably pay after a claim.
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Review your coverage yearly
Make sure your dwelling limit keeps up with building costs and that you aren’t paying for coverage you no longer need.
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Compare more than one company
The same home can be priced very differently from company to company. As an independent agency, we shop several for you.
See what your home insurance could cost
We compare home insurance from multiple companies, including ERIE, Nationwide, Progressive Home, Openly, Foremost and Universal Property.
Common questions
Home insurance rate questions, answered
Why is my home insurance higher than my neighbor’s?
Two similar-looking homes can have very different rates. Roof age, updates, construction, claims history, coverage choices, deductibles and credit-based insurance scores can all differ, and each company weighs them in its own way.
Does a new roof lower my home insurance?
Often, yes. A newer roof can earn a better rate or credit with many companies, and it may qualify for replacement cost coverage on the roof instead of actual cash value. Let us know when you replace your roof so we can review your policy.
Will filing a small claim raise my rate?
It can. Claims history, including smaller claims, is one of the factors companies consider. Before filing a small claim, it’s worth talking through your deductible and the possible effect on future premiums with us.
Should my coverage equal my home’s market value?
No. Your dwelling coverage should reflect what it would cost to rebuild your home, which can be higher or lower than what it would sell for. Land value isn’t included in rebuild cost.
Does home insurance cover flooding?
No. Standard homeowners policies exclude flood. Flood insurance is a separate policy, and water backup from a sump pump or drain usually needs its own endorsement.
How does an independent agent help with home insurance?
Each company prices homes differently, especially older homes, roofs and higher-value homes. We compare several companies, including ERIE, Nationwide, Progressive Home, Openly, Foremost and Universal Property, to find the right fit.
Lafayette Insurance is an independent insurance agency located at 3111 Builder Dr., Suite 6, Lafayette, IN 47909. This page is general information, not a quote or a guarantee of any rate. Rating factors, credits and discounts vary by company.
Coverage, features, limits and availability vary by company, state and policy, and are subject to policy terms, conditions, limitations and exclusions.