Home insurance rates in Indiana are climbing, and more residents are losing coverage as insurers cancel or refuse to renew policies in areas flagged as high risk.
What's happening?
According to the Indiana Capital Chronicle, a recent report from the Fair Housing Center of Central Indiana revealed a troubling pattern.
Rising home insurance costs are squeezing budgets, while cancellations and nonrenewals are leaving homeowners vulnerable. From 2021 to 2024, average premiums jumped by 16%, or $412, according to the FHCCI report. In the Indianapolis metro area, the increase reached 16.5%, or $440.
The Consumer Federation of America estimated that the average Indiana homeowner paid $2,979 in 2024 for a standard policy. Some national sources list premiums as low as $1,058.
The overall trend? Higher costs and shrinking coverage.
In 2022 alone, insurers canceled 1.8% of policies in Indiana for nonpayment. In certain areas, the rate was significantly worse. One ZIP code in Jennings County saw a 16.7% cancellation rate, meaning roughly 1 in 6 homeowners lost coverage.
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"A nonrenewal typically means the insurer saw the home and/or the homeowner as having become too risky to continue to cover," the report said.
Why is home insurance important?
Losing insurance coverage can force families out of their homes or leave them financially exposed during disasters such as storms, floods, or fires. Low-income and rural communities are especially vulnerable.
More broadly, this growing trend reflects how Earth's overheating is disrupting housing stability.
As pollution from dirty energy sources such as gas, oil, and coal warms the planet, severe weather has become more common and more damaging. These changes raise costs for insurers, who are now pricing policies based on new risk assessments that reflect this harsher reality.
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Definitely 💯 More heat means more storms, more flooding, and more fires. Insurance companies are taking that into account by increasing rates or refusing to cover homes altogether.
What's being done about home insurance?
The Fair Housing Center has called for more transparency from insurers and urged state and federal officials to gather better data. Several organizations are stepping in to help reduce the risks that lead to cancellations in the first place.
Communities that invest in climate-resilient infrastructure such as improved drainage or fire-resistant materials may also see benefits reflected in their insurance options.
To help reduce risk and lower bills, homeowners can take steps such as weatherizing their homes, improving insulation, and switching to heat pumps. For those feeling the financial pressure, shopping smarter at the grocery store can free up funds for essential costs such as insurance.
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