While premiums for auto insurance in Ohio are stable, that’s far from the reality in the homeowner marketplace here. You may not believe it, but insurance companies doing business in Ohio have not made money writing homeowners insurance for several years!
Hurricane Ike cost insurance companies over $1,200,000,000 (yes billion) in the Buckeye state. Hurricanes were not one of the considerations actuaries had when determining pricing for property in Ohio, but they are now. In addition, there have been 14 storms in the past five years that have eached caused over $25,000,000 in losees. The six biggest storms this year have caused nearly $600,000,000 in losses.
Insurance companies are in business to make money, and they have the ability to raise rates and become more selective in who they insure. Since 2006 homeowner premiums have risen an average of 38%, and it hasn’t been enough for the companies to make money. The average rate increase in 2009 among the top ten companies in the state averaged was 9.7%. The 2010 increase for the top ten carriers was 8.7%, and my guess is 2011 saw average increaes at or over 10%.
Depending on the type of claim you have, an insurer may refuse to renew your policy. If your home was in need of maintenance and that contributed to the dollar value of the settlement, the company may not renew you. We recommend choosing the highest deductible you can reasonably afford and think of your homeowner policy as catastrophic protection.