Indiana Home Insurance Requirements for Greenwood Homeowners

Nate Jones, CPCU, ARM, CLCS, AU
Jan 1
2 min read

Greenwood homeowners often ask: “Is home insurance required in Indiana?” The short answer: it’s not legally mandatory, but mortgage lenders almost always require it—and state guidelines strongly recommend adequate coverage. Here's an in-depth look for Greenwood residents.

greenwood indiana home insurance requirements

🏠 1. State-Level Requirements

Indiana has no law requiring homeowners insurance
However, the Indiana Department of Insurance suggests maintaining insurance equal to at least 80% of your home’s replacement cost to ensure full claim payment

📝 2. Mortgage Lender Requirements

If you finance your home in Greenwood, your lender will require homeowners insurance before closing:

Dwelling Coverage covering full replacement cost
Hazard Coverage: protection against fire, wind, hail, theft
Liability Coverage: typically ≥ $100,000
Reasonable Deductible: lenders may cap deductibles
If your home is in a flood zone or has sewer risk, lenders may require flood or sewer backup insurance

✅ 3. What Should Greenwood Homeowners Carry?

To align with lender expectations and secure full protection:

Dwelling coverage ≥ 80–100% of rebuild cost
Personal property for your contents (typically 50–70% of dwelling coverage)
Liability protection of $100,000 or more
Loss of Use / Additional Living Expenses to cover temporary housing
Optional Add-Ons: flood insurance (via NFIP), sewer backup, wind/hail endorsements

💡 4. Optional—but Smart—Coverage Add-Ons

Flood Insurance: Standard policies don't cover it; needed if you're in or near a flood zone
Sewer Backup Endorsement: Crucial during storms
Additional endorsements: such as equipment breakdown or extended replacement cost