As U.S. home insurance prices rise, Indiana stays below average
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Extreme weather is driving insurance prices sky-high in some parts of the country, but Indiana rates are below average, a new analysis finds.
Why it matters: Climate change is supercharging extreme weather events like hurricanes, increasing the odds of losses and claims and driving up insurance premiums.
Driving the news: The national average for annual home insurance premiums is up 9% since 2023, per a new Bankrate breakdown, hitting $2,470 as of July.
- That's based on quotes for married male-female homeowners with an eight-year-old $300,000 home, a clean claim history, and good credit.
Zoom in: Hoosiers are paying an average of $1,756 — about 2.5% of their annual income — putting Indiana at No. 24 in the national affordability rankings.
Threat level: Indiana home insurance premiums remain lower than average despite the state being at risk of extreme weather events like flooding, tornadoes and damaging straight-line winds year-round.
- Climate change is adding to that risk, making Indy rainstorms more frequent and severe over the past 50 years.
- And over the next 30 years, climate change is poised to raise the share of Marion County properties with a significant risk of flooding by more than 7%.
Stunning stat: Indiana's most damaging day of weather this year arrived on April 2 when 20 tornadoes touched down across the state, including in Carmel and Brownsburg, nearly matching the annual average of 22 in a single day.
- As of June, the National Weather Service had recorded 57 tornadoes in Indiana, tying 2024's total in the first six months of the year. The record is 72 in 2011.
Zoom out: Nebraska ($6,425), Louisiana ($6,274) and Florida ($5,735) are some of the states with shockingly higher-than-average premiums, Bankrate found.
- All three are vulnerable to extreme weather, including hurricanes, tornadoes, wind, hail and more.
Caveat: These figures don't include flood insurance.
Yes, but: Some places with relatively high average homeowner premiums also have higher median incomes.
- In the Denver metro, for example, "the average $300,000 home insurance policy costs $3,644 per year ... but homeowners there earn a median annual income of $103,055, resulting in just 3.5% of their pay going toward premiums," Bankrate says.
Between the lines: Climate change is driving nonrenewals in some areas, a December 2024 Senate Budget Committee report found.
- Non-renewals are correlated with higher premiums and are "often an early warning sign of market destabilization," per the report.
Reality check: The amount you'll actually pay for home insurance depends on many factors — not least of which is your credit score, but also the cost of your home, its materials, and other variables.
Go deeper: Soaring home insurance rates are acting as a "stealth inflation driver."