Home Insurance in Ohio

WRITTEN BY: Amelia Ciffone

UPDATED: MAY 24, 2022 | 3 MIN READ

Ohio is the insurance capital of the US, which partially explains why it’s so hospitable for homeowners insurance. Although environmental perils exist, they don’t cause nearly as much damage as they do in neighboring states. Property values are lower, which lowers the amount of coverage you need – and the premiums you have to pay in turn. That’s why Ohio is in the top 10 least expensive states for homeowners insurance. 

  • Fun fact – The name of the state, “Ohio”, actually comes from the Iroquois word ohi-yo. It means “great river”.

Average Rates in Ohio

Fortunately for Ohio homeowners, this is one of the least expensive states in which to maintain a homeowners insurance policy. Specifically, it’s #43 on the list of most expensive states for homeowners insurance. Why is this? Even though Ohio is no stranger to severe weather – and severe weather causes lots of expensive damage that homeowners have to file claims on – claims filed and repair costs in recent years apparently haven’t been that expensive. While the national average for home insurance is an annual premium of $1,211, the average Ohio homeowner is paying around $862 per year for their home.

Many residents in Ohio either can’t or won’t purchase a home – so they decide to rent instead. Renter’s insurance rates enjoy similar discounts. Although the average annual rate for renters insurance across the US is $180 a year, most Ohio renters are only paying $175 per year. That’s a nice little discount!

Ohio Legal Insurance Requirements

Rules and regulations surrounding home insurance in Ohio are pretty standard compared to the rest of the country. Like in most other states, there’s no federal or even local legal mandate to maintain coverage. However, your bank may impose one anyway. If you happen to still be paying off a mortgage or other home loan, your house and the land it sits on is still, technically, the property of the bank until it is fully paid off. And they will want to protect that investment by making sure you have a comprehensive homeowners insurance policy to cover any damages. The good news, for some homeowners, is that you’re free to discontinue your policy after you’ve finished making payments; but most homeowners choose to maintain coverage because the financial risk of going without will likely be much more expensive than an annual premium. 

Common Risk Factors in Ohio

Snow in winter, the occasional midwestern storm, and flooding are all common risks in Ohio. But most of these perils are either covered by standard homeowners insurance or the NFIP. Granted, if a leak happens in your home caused by a burst pipe, for example, that’s a type of flood damage that your homeowner’s policy will likely cover. But if it’s some sort of external flooding triggered by a hurricane or a body of water running over, you’re going to have to prepare in advance and purchase coverage from the National Flood Insurance Program or a private insurance company that specializes in flood damage. 

And if you live in such a high-risk area where you keep getting rejected for conventional coverage, be sure to contact the Ohio FAIR Plan Underwriting Association and talk to them about their FAIR Plans. These plans will provide you a fair amount of coverage, but not exactly for a “fair” price. It’s important to shop around and try your hardest to find standard coverage before you utilize this option as a last resort. 

Insurance Demographics/Statistics in Ohio

Average rates, legal requirements, and environmental risk factors are just a small part of what makes up your total homeowners insurance premium. Demographics also play a very important role. Things like housing prices and crime rates also contribute towards the grand total you will end up paying for the coverage you purchase. Below is a rundown of Ohio demographic statistics that will help you figure out whether or not you’re currently paying a fair price for your annual premiums. 

  • Average home value – the median price for a home in Ohio is $153,593. That’s more than $100k less than the national average. Obviously, this is going to make your homeowners insurance less expensive because you won’t have to purchase higher coverage limits in order to make sure you can adequately repair and/or replace any property damage that happens as a result of a peril.
  • Crime Rates – The most recent data shows a 21.77 for 1000 residence chance of becoming a victim of property crime in the state of Ohio. In case you were wondering, that’s a 1 in 46 chance that something bad will happen to your home, the property inside your home, or your car. This is much less frequent than the national average of 1 in 43, which actually puts Ohio in a better position than most areas.
  • Income: Making more money is great for your homeowners insurance premiums because your insurance company will know that you’re more reliable as far as making regular, on-time payments goes. In Ohio, however, the average income level of $56,111 may be working against you. That’s because this is just under $6,000 less than what the average US household is bringing home each year.
  • Higher Education: The same thing goes for higher education. The more education you have achieved, the more your insurance company will trust you to be financially responsible and pay your premiums on time. In Ohio, only 28% of homeowners have at least a bachelor’s degree. That’s 4 percentage points lower than the national average of 32%.

Where To Purchase Home Insurance in Ohio

The first step that most people take to find good homeowners insurance is to ask around among people they know. Friends and family who know you best can give you the most honest recommendation and point you in the right direction. But not everyone can or wants to take this option. If you’re more curious, you may want to look through your local Yellow Pages or even shop around online.

Only 44% of homeowners actually bother to shop around on an annual basis to see if a better deal is available for them when their policy is set to expire. Of those, a meager 17% bother to comparison-shop online! But shopping online really is the best option, because it gives you access to the greatest number of quotes from providers in your area in the shortest, most efficient amount of time. If you shop around with us today, we can start saving you money in no time!