5 Insurance Mistakes Indiana Homeowners Make (And How to Avoid Them)

If you’re a homeowner in Indiana, insurance probably isn’t something you think about until you need it.

Unfortunately, that’s usually when we discover a coverage gap.

At Hoosier Insurance Group, we review policies every day for families across Carmel, Westfield, Fishers, Noblesville, and surrounding communities. And there are a handful of mistakes we see over and over again.

Here are five to watch for.

1. Being Underinsured Because “That’s What Zillow Says”

Your home’s market value and its rebuild cost are not the same thing.

Market value includes land and location. Insurance covers the cost to rebuild your home from the ground up — materials, labor, debris removal, code upgrades, etc.

Construction costs have risen dramatically over the last few years. If your coverage hasn’t been reviewed recently, there’s a good chance you’re underinsured.

Fix: Review your dwelling coverage annually and adjust for current replacement cost estimates.

2. Not Knowing Your Roof Coverage Details

Roof claims are one of the most common claims in Indiana — especially with hail and wind.

Some carriers:

• Reduce roof payouts based on age

• Apply separate wind/hail deductibles

• Offer actual cash value instead of replacement cost

Many homeowners don’t realize this until after a claim.

Fix: Ask whether your roof is covered at Replacement Cost or Actual Cash Value. Know your wind/hail deductible.

3. Skipping Umbrella Coverage

Umbrella insurance is one of the most affordable ways to protect your assets.

If you:

• Own rental property

• Have teenage drivers

• Have significant savings

• Own a business

• Host gatherings at your home

You should at least consider it.

Umbrella policies typically provide $1M+ in extra liability protection for a surprisingly low annual premium.

Fix: Ask about adding a personal umbrella policy. It’s usually far less expensive than people expect.

4. Staying With One Carrier for Too Long

Loyalty doesn’t always equal savings.

Insurance carriers adjust rates based on broader risk models, not just your personal claims history. Over time, you can drift away from competitive pricing — even if you’ve had zero claims.

The good news? Many carriers are actively lowering rates right now in certain segments.

Fix: Shop your coverage every 1–2 years. An independent agency (like ours) can compare multiple carriers at once.

5. Not Bundling Policies

Bundling home and auto is still one of the most consistent ways to save money and improve coverage alignment.

Beyond discounts, bundling also:

• Simplifies claims

• Reduces coverage gaps

• Makes umbrella policies easier to structure

Yet many homeowners carry separate policies without realizing the opportunity.

Fix: Review all policies together — not individually.

A Simple Policy Review Can Make a Big Difference

Insurance isn’t just about price.

It’s about:

• Coverage structure

• Deductibles

• Exclusions

• Liability limits

• Long-term risk strategy