The True Cost of Owning a Lake House in Indiana

Gabe Cerny
Feb 18
2 min read

Owning a lake house in Indiana, especially in Steuben County or surrounding lake areas, can feel like a dream — but it’s important to understand all the costs involved. Beyond your mortgage payment, there are ongoing expenses that every buyer should plan for.

Here’s a breakdown of the true costs of lakefront ownership.

🏡 1. Mortgage Payment

Your largest ongoing cost will likely be your monthly mortgage. The amount depends on:

Purchase price
Down payment
Interest rate
Loan term

Be sure to factor this into your long-term budget.

💧 2. Property Taxes

Lakefront property taxes are often higher than average due to:

Higher assessed values
Waterfront premium

In Indiana, taxes vary by county, but lake homes can run significantly above typical residential rates.

🏠 3. Homeowners Insurance

Insurance for waterfront homes is more expensive than for houses further inland.

That’s because:

Water damage risk is higher
Weather can be more impactful near lakes
Replacement cost can be higher

Ask your agent or insurer about dwelling, liability, and additional rider coverage specific to water exposure.

🌊 4. Flood and Wind Insurance

Standard homeowners insurance does not cover flood damage.

If your lake house is in a flood-prone area, you may need:

Flood insurance
Windstorm coverage

These can add several hundred to a few thousand dollars per year.

⚓ 5. Dock and Shoreline Maintenance

Lakefront life means docks and shoreline come with upkeep.

Costs may include:

Dock repairs or replacement
Shoreline stabilization
Seasonal opening and closing
Boat lift maintenance

These costs can add up quickly, especially after harsh weather.

🌲 6. Lawn and Landscape Care

Large lots and waterfront landscaping require:

Lawn mowing
Tree trimming
Mulching and planting
Seasonal cleanup

Many owners hire local services to handle year-round care.

🛠️ 7. Home Maintenance & Repairs

Waterfront homes age differently.

Expect regular:

Roof inspections
Siding/paint touch-ups
Deck and patio repairs
HVAC servicing

A good rule of thumb: Budget 1–3% of the home’s value annually for maintenance.

🛥️ 8. HOA, Lake Association & Local Fees

Some Indiana lakes have:

Homeowners Association (HOA) dues
Lake association fees
Shared dock or common area upkeep

Make sure you understand any ongoing assessments before buying.

🚤 9. Utilities & Seasonal Costs

Lake homes often have:

Higher electricity bills (due to AC or heating needs)
Water and septic maintenance
Trash collection

If the home is seasonal, you may pay utility minimums year-round.

📆 10. Travel, Furnishing & Miscellaneous

Owning a second home can include:

Travel expenses
Furnishing or updates
Security and monitoring systems
Cleaning between stays

These costs aren’t required, but they’re common for vacation or second homes.

💡 Final Thoughts

Owning a lake house in Indiana is rewarding, but it’s not just about the purchase price. Ongoing costs — from insurance and taxes to maintenance and utilities — add up, and planning ahead ensures your lake lifestyle stays stress-free and enjoyable.