Ohio residents are feeling good about themselves again – LeBron's back in Cleveland, Johnny Football stands in the wings there, the Bengals and the Blue Jackets made the playoffs last year, and home insurance in Ohio looks like a bargain compared with other states.
How much of a bargain? The average Buckeye homeowner who purchased a policy through HomeInsurance.com during the second quarter paid only $697 for a year's worth of coverage – about $132 less than the national mean. That's enough to buy a light-up bike frame – yes, this is really a thing.
Why is home insurance such a good deal in Ohio? It's in part because residents are proactive about countering the risk of expensive claims.
Consider fire claims, for example: The average fire claim in the U.S. exceeds $34,300, according to the Insurance Information Institute (III). In Ohio, small fires don't become large ones as often. That's because 99% of homes in the state have smoke detectors, according to our study of policyholders who bought coverage in the second quarter. In addition, 90% have fire extinguishers and 85% live within 1,000 yards of a fire hydrant.
There's a similar commitment to security. About 96% of the Ohio residents we surveyed had deadbolt locks, and nearly one in six homeowners had burglar alarms. Nationally, theft claims average more than $3,425.
Steps taken by residents are important, because large Ohio cities such as Akron, Cincinnati, and Toledo all have burglary rates that exceed the national average, according to the 2012 FBI report on Offenses Known to Law Enforcement.
While Ohioans are proactive about improving their chances of preventing losses from fire and theft, they enjoy relative safety from natural disasters. Three of the state's largest cities made CBS News' list of the Top 10 Safest Cities from Natural Disasters. Dayton, Akron, and Cleveland benefit from their location – inside the Midwest but outside Tornado Alley. That's another reason for lower U.S. premiums than average.
Other reasons the insurance climate is favorable in the state?
The average home size among the policyholders we surveyed was 1,777 square feet, nearly 200 square feet less than the U.S. norm. Why is that important for insurance costs? Because dwelling coverage, the part of a homeowners insurance policy that can help if your home is damaged by a covered peril such as wind or fire, generally is set at the amount it would take to rebuild the home from the ground up.
Because Ohio homes, on average, are smaller, they can cost less to rebuild. The average replacement cost for houses in the state is only $263,048, nearly 6% lower than the corresponding national cost. Similarly, the price to rebuild other structures such as sheds, detached garages, and fences is nearly $4,200 less on average in Ohio than in the rest of the country. Both factors can translate into lower premiums.
Sports fans are optimistic that things are looking up for most Ohio teams. Home insurance experts know policyholders in the state have been winning the premium game for some time.
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