Indiana Homeowners Insurance Regulations

• Homeowners insurers in Indiana are subject to several state regulations.home 3 image by Stacey Lynn Payne from Fotolia.com
  
  Homeowners insurance companies in Indiana are subject to a number of regulations designed by the state to protect you, the customer, from insurer abuses. The state's department of insurance also allows for consumer complaints against abusive insurers to be filed directly through its website. If you are aware of some of these regulations, you can be proactive in avoiding adverse situations with your home's insurer.
  
  

Use of Credit Information

• An entire chapter of the Indiana Legislative Code is dedicated to the regulation of the use of credit information by insurance companies. While it is legal in the state for insurers to use your credit score as part of the underwriting process, they face several restrictions. Notably, insurers are forbidden from using credit information as the sole factor for denying, canceling or failing to renew your policy. If you have no valid credit history, they must underwrite as if your history is neutral or seek state permission to underwrite differently.
  
  

Geographical Discrimination Prohibited

• The resources of a homeowners insurance company, such as office locations or staffing levels, may make certain locations within the state unattractive for writing policies. Despite this, insurance companies are required by law to write homeowners policies in all locations unless sound actuarial evidence exists to support a decision against writing them in certain neighborhoods or areas. Discrimination based solely on your geographical area is strictly prohibited by law, and insurers can face stiff penalties for violating this principle.
  
  

Disclosure of Information

• Homeowners insurance, by its very nature, involves the use of your personal and non-public data when you apply for coverage. The Indiana Legislative Code strictly prohibits the disclosure of this information to non-affiliated third parties. This law is designed to protect your privacy and ensure that your data is only used in the context for which you supplied it in the first place.