Homeowners’ insurance costs continue to skyrocket and few choices remain for Hoosiers who cannot afford a premium increase or receive a coverage denial.
A new study showed the average home insurance premium in Indiana rose by 16% between 2021 and 2024. Statewide, one of every 54 policies was cancelled in 2022 because homeowners fell behind on their payments.
Amy Nelson, executive director of the Fair Housing Center of Central Indiana, said the report’s numbers are not entirely complete.
“The increase in insurance rates that we point out in the report, we actually believe are under-reported, because there’s very little data that is available out there,” Nelson explained. “We believe prices have been increasing at a much higher rate in more recent years, but the data has not (been) available to reflect that.”
One of the biggest takeaways from the report, Nelson pointed out, is the “secrecy” of the insurance industry, which makes it challenging for homeowners and renters to get information. If you get a drop in coverage, or your price goes up considerably, she noted, there is not much a consumer can do about it.
One complaint in the study titled “The State of Fair Housing Report – The Insurance Crisis Hits Home,” was about a substantial price increase based on wildfire and hurricane damage in other states.
Nelson stressed despite Indiana’s low numbers of such disasters, Hoosiers can nonetheless expect high insurance prices, a guideline she feels needs further discussion. If a homeowner’s mortgage amount is unchanged but insurance costs go up, Nelson emphasized the trend could force consumers to either discontinue coverage or avoid mortgage payments.
“This might drive people into foreclosures and that then will be the loss of generational wealth,” Nelson underscored. “We hadn’t done a report on insurance before. We wanted to do that because we have concerns with escalating foreclosure rates also happening here in Indiana. First quarter 2025, Indiana was fourth highest in the country for foreclosure filing rates.”
People of color and older adults — those without mortgages — are more likely to go without homeowners’ insurance due to fixed budgets, which places them at higher risk, Nelson added. Indiana and 34 other states have the FAIR Plan insurance, a last resort option for people who cannot get private insurance.
1 comment
Its ludicris how homeowners insurance companies are taking our money and leaving us without coverage when needed. Dont pay and they cancel you leaving mortgage companies to get coverage themselves. Pay them, and submit a clearly covered claim, and they decline coverage for stupid or no reasons! So then what? Nobody to fight for us. They could care less about news articles like this.