Indiana Homeowners Insurance Guide

Home insurance laws can be similar among the states, but homeowners must take the time to learn the respective state requirements, as differences always exist. The Indiana Department of Insurance enforces the laws of the Crossroads of America, and it provides assistance in filing consumer complaints against providers.

Indiana Laws You Should Know

As an owner, you should choose coverage that protects your dwelling, which is, after all, your biggest and most important investment. You need a policy that will give you the security of knowing you will be able to maintain a good quality of life if you had to deal with the total loss of your house.

The Hoosier State suggests insuring your home for at least 80% of its replacement value, as less than that amount will result in a settlement of actual cash value, which takes depreciation into account. Your mortgage lender will also have certain requirements, and you should look at additional options offered by your insurer, such as flood protection. Farm policies are offered independently of homeowner policies, but its format is quite similar.

Most policies have a $500 deductible, and personal liability coverage is usually included. This protects you from claims for injuries and property of others damaged while on your property, as well as any injuries or damages you might cause someone when you are away from your house.

Flood Considerations

The floods in 2008 brought up a number of questions for Indiana residents. While standard policies do not look after flood damage, a Hydrostatic Pressure Endorsement is offered by some companies, which insures for collapse of the building due to the pressure of floodwater on the dwelling's foundation. While some policies also take care of the damage caused by sewer or drain backup, this coverage does not apply in the event the backup is caused by flood water. Flood protection is offered only through the federal government as a supplement to your coverage. If you are thinking of purchasing flood protection, keep in mind that the protection does not go into effect until 30 days after purchase.

What Types of Policies Are Available?

• Actual cash value (ACV) - A plan that includes ACV will reimburse you for the replacement cost of the dwelling, property or item minus calculated depreciation and useable lifespan. This would mean you would have to make up the difference between what your insurer offered you and the cost of a brand new item or property if you were to purchase it today. Remember that, unless you insure your dwelling for at least 80% of its value, you will automatically get ACV in the settlement of your claim.
• Replacement cost - This alternative will pay the cost of a new item, building supplies or property in today's dollars, not accounting for a useful lifespan or depreciation. As you may have guessed, this coverage will likely cost more because it offers more.
• Personal Property - The contents of your home are typically covered for 50% of the cost of the dwelling. Therefore, if your home was bought at $200,000, the contents (your belongings) would be covered up to $100,000. Your policy will also grant some coverage to your personal belongings while they are away from your home. This is usually 10% of your basic protection on the home's contents, or $1,000, whichever amount is larger. Your policy will also grant some coverage to your personal belongings while they are away from your home. This is usually 10% of your basic protection on the home's contents, or $1,000, whichever amount is larger.

If you need additional assistance concerning coverage in Indiana, visit IDOI Property Insurance at the Indiana Department of Insurance's website.