*Quote takes 1 minute, no credit pull
Insurance*1 quote from 40+ carriers
Listings*New listings daily
Landlord Insurance Indiana
Last updated: May 26, 2025
"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett
Landlord insurance in Indiana is a specialized insurance package crafted for property owners renting out residential or commercial real estate within the Hoosier State. Whether you manage a single rental property in Indianapolis or own multiple units scattered across Fort Wayne, Bloomington, or Evansville, landlord insurance Indiana is critical for safeguarding your investment and managing risks particular to the region.
Unlike typical homeowners insurance, landlord insurance policies in Indiana are tailored to the distinct challenges rental property owners face, such as tenant liabilities and damage from weather conditions common in Indiana, including tornadoes and harsh winters.
Indiana property owners have seen insurance costs rise steadily in recent years, which impacts rental income and cash flow. From our analysis of thousands of landlord insurance Indiana policies, many landlords overpay by up to 25% simply due to limited access to specialized agents or agencies unfamiliar with landlord insurance nuances.
That’s why we created the OfferMarket Insurance platform, designed specifically to help Indiana landlords quickly compare quotes from more than 40 insurance providers. Our Indiana-focused insurance experts carefully review each offer to ensure you receive top-notch protection at the best possible price—helping landlords across Indiana save thousands annually.
What Risks Does Landlord Insurance in Indiana Cover?
A comprehensive landlord insurance policy in Indiana typically protects against:
🏠 Property damage caused by fire, tornadoes, hail, vandalism, and other common risks
⚖️ Liability claims if someone is injured on your Indiana rental property
💸 Loss of rental income if covered events render your property uninhabitable
🌊 Flood insurance (required separately if your Indiana rental is located in a flood-prone area)
Property Insurance
In Indiana, landlords contend with weather-related threats such as tornadoes in the spring and hailstorms, along with risks from fire and vandalism. The property insurance component of your landlord insurance Indiana policy covers these dangers and may include temporary housing costs if tenants must be relocated during repairs.
Indiana’s property insurance is organized into three main coverage forms—Basic, Broad, and Special—each addressing different “perils” (risks):
Basic Form Perils
The most affordable property insurance option for Indiana landlords covers only the basic perils, which include:
🔥 Fire
🌩️ Lightning
💥 Internal explosion
Extended Coverage (EC) Perils
In Indiana, the mnemonic WHARVES is often used to recall the extended coverage perils you can add to your basic property insurance policy:
🌬️ Windstorm (including tornadoes common in Indiana’s spring season)
🦹♂️ Civil commotion
🔥 Smoke damage (if not caused by fire, but from sudden damage)
🌨️ Hail (frequent in Indiana’s unpredictable weather)
✈️ Aircraft
🚗 Vehicle impact
💥 Explosion
❗ Riot
For vandalism-related risks, the acronym V&MM covers:
🏚️ Vandalism
🦹♂️ Malicious mischief
Broad Form Perils
Indiana insurance agents use the acronym BIG AFFECT to remember additional broad form perils included along with basic and extended coverage:
🥷 Burglary damage
🧊 Ice, sleet, snow (weight-related damage during harsh Indiana winters)
🪟 Glass breakage
🚰 Accidental discharge of water or steam
🧊 Freezing objects (important in Indiana’s cold months)
✈️ Falling objects
⚡ Electrical current damage
🏚️ Collapse
💥 Tearing asunder
Special Form Peril
The most comprehensive coverage for Indiana landlords is called “Special Form,” “open form,” or “DP-3” (commonly for single-family rentals). This form covers all risks of direct physical loss unless specifically excluded—so always review your policy’s exclusions carefully. Typical exclusions in Indiana policies include:
🌊 Flooding (requires separate flood insurance due to Indiana’s flood zones)
🌎 Earthquake (uncommon but possible; usually added via endorsement)
🤡 Intentional damage
⚠️ Building code enforcement costs
🔌 Power interruptions off-premises
🇺🇸 Government seizure
General Liability Insurance
General liability insurance in Indiana protects landlords against injury or property damage claims from tenants, visitors, or contractors on your rental property. Limits typically range from $100,000 to $1,000,000 per incident.
For instance, if a tenant slips on an icy walkway in your Indiana rental and files a lawsuit, your landlord insurance Indiana policy’s liability coverage helps cover medical bills and legal expenses.
Business Interruption Insurance (Loss of Rent)
Indiana landlords face the risk of rental income loss if tenants have to vacate due to property damage. Business interruption insurance included in your landlord insurance Indiana policy helps cover lost rent, maintaining stable cash flow during repairs.
This coverage is often affordable in Indiana, typically costing around $1 per $1,000 of annual rental income.
Flood Insurance
Given Indiana’s susceptibility to flooding, especially near the Ohio River or low-lying areas like Evansville or Terre Haute, flood insurance is vital if your property is in a FEMA-designated flood zone.
Indiana lenders commonly require flood insurance coverage of up to $250,000. This is separate from your landlord insurance Indiana policy and is usually available through the National Flood Insurance Program (NFIP). You can verify flood risk using FEMA’s Flood Map Service.
Landlord Insurance for DSCR Loans in Indiana
If you finance your Indiana rental property with a Debt Service Coverage Ratio (DSCR) loan, it’s important to understand the insurance requirements imposed by lenders. Indiana landlords must secure landlord insurance policies that meet lender guidelines to qualify and maximize loan approval.
Since insurance premiums impact your DSCR, selecting affordable yet comprehensive landlord insurance Indiana policies is essential for preserving cash flow and maintaining loan eligibility. Common DSCR lender requirements include:
| DSCR Loan Insurance Requirement | Required? |
|---|---|
| Property Insurance | Yes |
| General Liability Insurance | Yes |
| Business Interruption Insurance | Yes |
| Mortgagee Clause | Yes |
| Lender as Additional Insured | Sometimes |
Our OfferMarket Insurance platform can assist Indiana landlords in navigating DSCR loan insurance demands by providing quotes aligned with lender criteria while minimizing costs.
How Much Does Landlord Insurance Cost in Indiana?
The cost of landlord insurance in Indiana varies due to several key factors:
Location in Indiana
Insurance carriers use regional data when pricing policies. For example, properties near the flood-prone Ohio River in southern Indiana, such as Evansville, may face higher premiums than those in northern cities like South Bend or Fort Wayne. Local labor and material costs also influence repair expenses and insurance rates.
Property Insurance Type
Indiana landlords can choose from Basic Form, Broad Form, and Special Form coverage. Special Form offers the most extensive protection and is usually recommended for rental properties, though it comes at a higher cost.
| Property Insurance Type | Cost |
|---|---|
| Basic Form | $ |
| Basic Form + Extended Coverage | $$ |
| Broad Form | $$ |
| Special Form | $$$$ |
Dwelling Coverage Amount
The most significant factor in determining your Indiana landlord insurance premium is the amount of dwelling coverage you purchase. Insuring your property at full replacement cost value (RCV) is recommended to avoid penalties like coinsurance.
With Indiana’s rising construction costs, it’s vital to regularly update your coverage limits to reflect current replacement expenses.
| Dwelling Coverage Type | Cost |
|---|---|
| Actual Cash Value | $ |
| Functional Replacement Cost Value | $$ |
| Replacement Cost Value | $$$ |
Deductible
Choosing a higher deductible reduces your annual premium in Indiana. Many landlords select deductibles of $5,000 or more to balance out-of-pocket costs with premium savings.
| Deductible | Premium Cost |
|---|---|
| $1,000 | $$$$ |
| $2,500 | $$$$ |
| $5,000 | $$$ |
| $7,500 | $$ |
| $10,000 | $ |
| Coverage Type | Requirement |
|---|---|
| Property Insurance | Mandatory, AM Best Rating A- VIII or higher, 1-year term |
| Limits | 80% of replacement cost or loan amount, whichever is higher |
| Deductible | $5,000 |
| Policy Type | Special Form (Dwelling Fire or Commercial Property) |
| Cancellation Notice | 30 days |
| Lender’s Designation | Mortgagee |
General Liability Insurance
| General Liability Insurance | Requirement |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or higher |
| Limits | $500,000 per occurrence, $1,000,000 aggregate |
| Deductible | $1,000 |
| Coverage | Occurrence basis |
| Cancellation Notice | 30 days |
| Lender’s Designation | Additional Insured |
Business Interruption Insurance
| Business Interruption Insurance | Requirement |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or higher |
| Limits | One year of gross rental revenue |
| Cancellation Notice | 30 days |
| Lender’s Designation | Mortgagee |
Flood Insurance
| Flood Insurance | Requirement |
|---|---|
| Mandatory if in flood zone | Yes |
| AM Best Rating | A- VIII or higher |
| Limits | $250,000 or loan balance, whichever is greater |
| Cancellation Notice | 30 days |
| Lender’s Designation | Mortgagee |
Additional Details for Indiana Landlord Insurance
| Detail | Information |
|---|---|
| Mortgagee Clause | OfferMarket Capital LLC ISAOA/ATIMA 627 S Hanover St Baltimore, MD 21230 |
| Condos and PUDs in Indiana | Blanket policies allowed if individual units are covered. Associations must maintain all-risk coverage for common areas and equipment at 100% replacement cost. |
| Instructions | Use ACORD forms for compliance. Submit insurance certificates, invoices, or paid receipts at least 24 hours before closing. Final policy documents must be submitted within 60 days of closing. Notify carriers if the property becomes vacant and obtain a vacancy permit if required. |
.Frequently Asked Questions About Landlord Insurance in Indiana
How does OfferMarket Insurance work for Indiana landlords?
OfferMarket Insurance is a platform specialized in landlord insurance Indiana property owners need. We compare quotes from multiple carriers, ensuring policies meet your preferences and lender requirements in Indiana. Our experts review every quote so you get the best coverage at the best price.
Do I need a Builders Risk Policy in Indiana?
Builders Risk insurance is not included in standard landlord insurance Indiana policies. You only need it if you are renovating, rehabbing, or building a rental property. It protects your property and materials during construction phases.
Can I use Functional Replacement Cost instead of Replacement Cost Value for my Indiana rental?
It depends on your lender’s rules in Indiana. Many lenders accept Functional Replacement Cost, but some require Replacement Cost Value based on your property’s age and condition as noted in your Indiana appraisal.
Why does my Indiana lender need to be an Additional Insured?
Some DSCR lenders in Indiana require this. Being an Additional Insured extends liability coverage to the lender, while the Mortgagee Clause covers property rights. Understanding both ensures your Indiana policy meets lender expectations.
Can I use my preferred insurance agent for landlord insurance in Indiana?
Yes, if your agent can provide competitive landlord insurance Indiana policies and understands specific coverage requirements. However, agents focusing only on personal insurance may lack knowledge of Indiana landlord insurance details, causing delays.
Can I pay for landlord insurance on the HUD-1 or ALTA settlement statement in Indiana?
DSCR loans in Indiana generally require full payment of landlord insurance premiums at closing, either on the HUD-1/ALTA statement or directly via your insurance agent before settlement.
Can I escrow my landlord insurance premium in Indiana?
Many institutional lenders in Indiana require premiums to be escrowed as part of your monthly mortgage payments to ensure continuous coverage.
Can I get a refund if I cancel my Indiana landlord insurance policy?
Yes, Indiana insurers must refund unearned premiums on a pro-rated basis. Ensure you have replacement coverage in place before canceling to avoid gaps.
What is an AM Best Rating?
AM Best rates insurance companies’ financial strength. In Indiana, choose carriers rated A- VIII or higher for landlord insurance to guarantee dependable coverage.
What is Builders Risk Insurance in Indiana?
Builders Risk covers Indiana properties and materials during construction or renovation. It protects against fire, wind, theft, and vandalism during building and typically ends when construction is complete or the property is occupied.
Protect and grow your portfolio with OfferMarket
OfferMarket is a real estate investing platform focused on serving rental property investors, specifically 1-4 unit residential properties. Our mission is to help you build wealth through real estate.
☂️ Landlord Insurance rate shopping platform specialized in landlord insurance that meets DSCR loan guidelines 🏚️ Off Market Properties marketplace featuring hundreds of exclusive and off market deals posted by wholesalers, tired landlords and distressed sellers. 💰 Private Lending featuring instant quotes and a simple, low cost, transparent borrowing experience for DSCR loans, Fix and Flip loans and Slow Flip loans. 💡 *Insights regularly published to provide you with a knowledge advantage.