Homeowners Insurance in Ohio

Ohio has rolling hills, plains, twisting rivers, and sandy beaches. Best known for the Rock and Roll Hall of Fame and Amish Country, Ohio offers residents many options. Located in the Midwest, Ohio is subject to some nasty weather like tornadoes, earthquakes, and wildfires. Due to the miles of coastline, flooding also occurs. Since 1953, Ohio has had 54 federally declared disasters, and the rate of disaster per 1 million people is 4.57.

Property damage caused by natural disasters is not the only kind of damage that occurs. Residents of Ohio also file claims for burst pipes and water damage, electrical and wiring failure causing fires, hail damage, sump pump water damage, theft, trees falling on the property, vandalism, and windstorms.

There is no federal or state law requiring homeowners insurance of any kind. However, experts agree that everyone who owns property should have some protection. If you borrow money to buy a property, your lender will require you to have specific coverage limits and keep it insured for the life of the loan.

As of September 2024, the national average for homeowners insurance is $2,728/year or $227/month. In Ohio, homeowners pay an average of $1,452 annually for home insurance, which is almost half the national average.

Insurance carriers decide which states to operate in and what types of coverage to offer. Their policies and rates will vary depending on the potential natural disasters and other perils. In Ohio, the available types of homeowners insurance coverage available are:

Ohio residents should also consider a flood policy based on the amount of coastline and a possible umbrella policy to fill in any gaps in coverage.

FEMA (Federal Emergency Management Agency) manages the National Flood Insurance Program (NFIP) through a network of 50 providers across the U.S.

Since most homeowners insurance does not cover floods, this supplemental coverage can repair damage and replace items after a flood. Depending on the options you choose, it can cover the building and/or your personal belongings. This program is available to homeowners, renters, and businesses. Learn more about the program on FEMA's website.

Climate change is on everyone's mind these days, even more so within the home insurance industry. More frequent disasters are causing exorbitant claims and insurer losses. As a result, insurance rates keep climbing. Over the past five years, rates have increased by 34% across America and even as high as 60% in some areas. In Ohio, homeowners insurance rates have increased by 22.4%, considerably less than the national average.

Ohio experiences damaging weather events like tornadoes, earthquakes, wildfires, and floods. Even a single claim for fire or lightning costs insurers an average of $77,340. Wind and hail damage costs an average of $11,695, and water and freezing costs an average of $11,650 per incident. From 2015 to 2019, insurance providers lost a total of $1,275,407,000. Ohio makes the list of states with the most dog bite claims (732), which costs an average of $41,499 per claim!

From 1980 to 2024, Ohio experienced 98 billion-dollar disasters. In 2023, 56 tornadoes caused enormous property damage; in 2022, 724 wildfires destroyed 3,063 acres of land.

With home insurance costs rising steadily, homeowners nationwide must find ways to save. The trick is to know what factors impact the cost of home insurance and make adjustments from there. The factors in Ohio are:

Some ways to save on homeowners insurance in Ohio include:

• Ask for Recommendations/Shop Around: Ask for provider recommendations and shop around. Get multiple quotes before deciding.
• Raise Your Deductible: Raise your deductible as high as possible to save on home insurance.
• Make Your Home Safer: Install home security and replace your roof, windows, or siding to strengthen your home and pay lower insurance.
• Fire Safety Upgrades: Install smoke alarms, fire extinguishers, and sprinklers to get a break on your home insurance rates.
• Don't File Small Claims: Don't file small claims. Wait until you need the insurance to use it.
• Bundle Policies: Bundle multiple policies together, and your insurer should cut you a better deal.
• Ask for Discounts: Ask your insurance agent for any discounts that might apply to you.
• Improve Your Credit: Ask your agent to re-evaluate and lower your rates accordingly.
• Avoid High Risks: Don't add new risks to the property and eliminate existing ones.

Home insurance is a policy that protects your home financially against covered perils. After a disaster, the insurance company will pay to repair or replace your home. Most policies include dwelling coverage, other structures, personal property, liability and medical payments, and ALE coverage. Some covered events are fire, smoke, windstorms, theft, vandalism, and water damage (burst pipes).

To get a new policy, you can research and decide upon an insurance provider, then call them or apply online through their website. Some have built-in calculators that help you decide on coverage. You could also find a local agent to work with to help you determine how much and what types of coverage you need. You must pay the first year in advance when signing up. After that, you will pay once annually or monthly through your mortgage escrow.

The most common discounts offered by most reputable firms include:

• Early Quote Discount: If you ask for a quote well before you need it, your provider could offer you a discount for being proactive.
• Senior Discount: Many firms offer discounts on home insurance to seniors of a specific age.
• Military Discount: Most insurance providers discount active military personnel and vets.
• Occupational Discount: Some professions, like firefighters and teachers, also get discounts.
• Claims-Free Discount: Stay claims-free for as long as possible to earn discounts from your insurance provider.
• Safety Discount: Make your home safer with a home security system to avoid theft, vandalism, and break-ins, and you could earn discounts.
• Bundling Discount: Bundle multiple policies together for a discount.
• Paperless Discount: Go paperless for your insurance statements, and your provider will give you a discount.
• Autopay Discount: Sign up for autopay and earn a small premium discount.
• New Roof Discount: Install a more storm-resistant roof, and your provider will discount you.
• Non-smoking Discount: Non-smokers have less fire risk and get lower rates than smokers.
• Smart Home Discount: Install smart home devices to make your home more efficient, monitor for disasters, and earn a discount.
• Green Discount: Install specific eco-friendly devices, and your provider may give you a discount.
• Fire-Safety Discount: Install sprinklers, smoke alarms, and fire extinguishers to earn a discount on your home insurance.

Common Rates Offer by Homeowners Insurance Firms

New homes cost far less to insure. Sometimes, homeowners pay as much as 40% less for a new home. A house only five years old or younger can cost as much as 26% less to insure. Homeowners in Ohio pay an average of $1,009 to insure a new home. Of course, your actual rate will vary based on factors like age, credit score, claims history, etc.

Top 10 Home Insurance Firms in Ohio and Average New Home Savings

Home renovations enhance your home's beauty and can make it more disaster-resistant. Upgrades also impact your home insurance rates, sometimes positively and sometimes negatively. Some updates add risk or value and increase rates, while others reduce risk or strengthen the home, making it safe and lowering rates. Some do both simultaneously, canceling out any effect.

Home Renovations that Increase Rates

Some home renovations that increase your rates include:

• Adding a Room: Adding more room to make everyone feel comfortable is great, but it adds more space and value and will cost more to insure.
• Remodeling: Upgrading your outdated flooring, carpets, appliances, and light fixtures can add beauty and value to your home, but it will also increase the cost of your home insurance. The more luxury, the higher the cost.
• Adding a Fountain: A fountain can add an air of elegance to your property, but it is also a risk and will cost more to insure.

Home Renovations that Decrease Rates

Some home renovations that decrease your rates include:

• Make the Home Disaster-Resistant: Install hurricane straps or ties, impact-resistant shingles, and storm-safe windows (shatterproof), and your insurance rates should go down.
• Add a Sprinkler System: Adding a sprinkler system can reduce your fire risk and lower your home insurance rates.
• Water Leak Detectors: Water leak detectors are a great, inexpensive way to prevent water damage and flooding from plumbing issues. It can also lower your home insurance cost.

Adding new siding to your home can make it more weather-resistant and should decrease your rates, but depending on the materials, it could also increase them.

Home renovations you decide to make are not covered by your home insurance. Homeowners insurance only pays to repair or replace your home after a covered peril. You are responsible for regular maintenance and elective upgrades. Other things that are not covered are pest infestations, rodents, and animal damage. However, if someone steals from you or is hurt during renovations, those are covered.

Before beginning work, you must always discuss any potential renovations with your insurance agent. Find out how they could affect your coverage levels and your premiums. You may need to make changes after the job is completed.

Ohio renters also need homeowners insurance to protect themselves. However, renters insurance is slightly different because it has no dwelling coverage. The owner must cover that under their own policy. The main goal of renters insurance is to protect your personal property. If your belongings are stolen or destroyed after a covered event, renters insurance will pay to replace them up to your coverage limits. If you have expensive items like jewelry, furs, or collectibles, they may not be covered. Some covered perils include:

Some of the items that renters insurance covers are:

Renters insurance is priced according to three main factors, and they are:

A typical renter in Ohio pays roughly $12.99 per month or $156 annually. That is slightly lower than the national average of between $15 and $20 monthly.

Condo owners living in Ohio also need homeowners insurance protection. Condo insurance is slightly different than homeowners in the dwelling and liability portions. A condo association has its own master policy that covers the dwelling and will replace each building and restore it back to its original condition (when it was first built) after a disaster. The problem with that is that most condo owners have long since upgraded the interior. Therefore, HO-6 or condo insurance only applies to the interior and restores it to the most current condition after an event. Condo insurance also includes personal property, liability, medical payments, loss of use, and loss assessment. Some covered events include windstorms, hail, smoke, fire, lightning, theft, and vandalism.

Unlike renters insurance, which has no dwelling coverage, condo insurance does, but it only covers the interior. Also, the liability portion only applies to people hurt inside the condo, not outside or on common grounds.

Condo insurance pays to replace the following items:

• Appliances
• Flooring
• Interior Walls
• Wiring
• Plumbing
• Light Fixtures
• Cabinets
• Countertops
• Personal Belongings

The average cost of condo insurance in Ohio is $300-$400 a year. The national average for condo insurance is $625/year for $60,000 of personal property coverage, $300,000 of liability, and a $1,000 deductible.

You can save on condo insurance premiums by doing the following:

• Shop Around and Compare Prices
• Bundle Your Home and Auto Together
• Increase Your Deductible
• Look for Other Discounts
• Upgrade Your Home with a Security System
• Keep Your Credit Score High
• Avoid Small Claims

The entire homeowners insurance industry is in turmoil. More frequent natural disasters are causing widespread damage, numerous claims, and catastrophic losses. In Ohio, over the past ten years, insurers have gone from consistently making money to breaking even and finally incurring huge losses each year. 2023 was a disastrous year for Ohio insurance providers. Clearly, the tides are turning, and if these trends continue, insurance carriers may have to decide to stop offering policies in the state, limiting coverage, or dropping high-risk customers.

Unfortunately, although Ohio is seen as a relatively safe state, due to its potential for various disasters like tornadoes, earthquakes, wildfires, and floods, the state of the insurance market is becoming perilous. More frequent claims are occurring, resulting in losses. A continuation of this effect will be that residents find it harder and harder to get the coverage they need.

Regulating the insurance industry is left up to each state to handle. They appoint a specific department to handle all duties, including monitoring providers and rates (to ensure fairness), investigating customer complaints, and punishing guilty firms. In Ohio, that state agency is the Department of Insurance, located at 2100 Stella Court, Columbus, OH 43215.