Curious about the average cost of homeowners insurance in Ohio? Discover what Ohio homeowners typically pay for home coverage.
Rents continue to rise in Ohio and across the United States on an average of over three percent, yet in many cases it’s still often cheaper to rent than it is to buy.1 This is due to still-high mortgage rates and limited housing inventory, but also because homeownership comes with a slew of additional costs. Property taxes, pricey repairs, homeowners association (HOA) dues, and other stealthy expenses can all add up, but for some Ohio residents, the biggest of these expenses will be the cost of homeowners insurance. So, what’s the answer to buying a home in Ohio and lowering the insurance costs at the same time?
Read on to learn more about the average cost of homeowners insurance in Ohio, some of the driving factors behind this hefty cost, and a few ways you can reduce this expense –– or eliminate it altogether.
People who don't own homes might not be familiar with homeowners insurance, and even homeowners themselves might be surprised to discover the full breadth of its utility. Homeowners insurance is similar to an automotive policy in that it provides financial protection against potential losses and property damage in the case of a destructive event. However, this insurance coverage also extends to personal belongings, furnishings, and other assets in the home. And in the event that your home gets damaged to the point of needing repairs (or a rebuild,) your homeowners insurance may cover living expenses incurred by your displacement –– depending on the terms of your policy.2
Homeowners insurance also provides liability coverage against accidents in the home or on the property, protecting policyholders against potentially crippling legal fees in the event of any unintentional harm. This extends to damage caused by family members or pets. These policies also have a coverage limit, however, and while fires are considered qualifying destructive events, floods and earthquakes are not. Ohio isn’t known for its earthquakes, so earthquake insurance isn’t necessary. Flood insurance coverage, on the other hand, may be good to have (and may even be required by some lenders.)
Compared to some costs affiliated with Ohio homeownership, homeowners insurance is fairly straightforward. Still, it’s wise to understand the full extent of any insurance policy to ensure you’re getting the coverage you need.
Also like an auto insurance policy, the average cost of homeowners insurance in Ohio varies from homeowner to homeowner. However, according to information gathered by MarketWatch, spanning several insurance providers, Ohio residents can expect to spend around $1,600 each year on homeowners insurance. While this may feel like a hefty expense, it’s a relative bargain compared to the national average of $2,400 a year.3
Homeowners insurance in Ohio can get quite costly in the supplemental policies mentioned above, like flood insurance. Ohio has more flood-prone areas than many other states, resulting in higher annual insurance premiums. Depending on which part of Ohio they’re in, Ohio homeowners can expect to pay anywhere from $600 to $2,250 a year on flood insurance. The annual state average is around $1,200, but residents of more flood-prone areas like Cincinnati and Columbus can expect to pay a higher premium.
Aside from the need for additional flood coverage, there are several factors that can influence the average cost of homeowners insurance in Ohio:
Your claims history isn’t the only thing an insurance company looks at when assigning rates. Your credit history, too, can impact your annual premiums. Ohio homeowners with a lower credit score tend to pay substantially more for their homeowners insurance. So, if you’re in the process of rebuilding your credit score, know that your score could have an impact on your annual premiums.
Understanding the average cost of homeowners insurance in Ohio and the myriad factors influencing annual premiums, some homeowners may question if there’s a way to circumvent homeowners insurance altogether. But while the state of Ohio doesn’t legally require homeowners insurance, your mortgage lender likely has requirements of their own –– not to mention that going without homeowners insurance can be an incredibly risky (and costly) maneuver.
When a financial institution or mortgage lender approves your home loan, they take an active financial stake in your property. Naturally, they want to ensure their investment is protected –– requiring homeowners insurance as a result and ensuring that lenders get reimbursed for their portion of ownership in the event of damage or destruction. Depending on your location, lenders may also require flood insurance, which can be a hefty surcharge on top of your annual insurance premiums. Note that lenders will likely require proof of homeowners insurance, and if they find out your policy has lapsed or has been canceled, you may face foreclosure.
Though it’s not against the law, opting out of homeowners insurance in Ohio can be extremely risky. Without insurance, homeowners are fully exposed: on the hook for any repair or rebuilding costs resulting from property damage and financially liable for any accidental injuries that occur on the premises. Considering you’ll still have a mortgage to pay in addition to any construction or legal fees, this financial burden can be too much to bear without homeowners insurance.
But homeowners insurance isn’t just a safeguard against disaster –– it alleviates the stress of unfortunate events and inconveniences of all sizes. Say, for example, that your house gets robbed. Homeowners insurance can’t help you with the feeling of having your privacy violated, but it can help you replace valuable electronics, jewelry, and other household affectations. Without homeowners insurance, you’re left to deal with both the trauma of a break-in and the costs of replacing your losses.
Homeowners insurance is worthwhile –– and for many homeowners, required –– but that shouldn’t stop you from seeking out the best deal. Here are several strategies homeowners in Ohio can employ to reduce their insurance costs:
Raising deductibles, comparing rates, and ramping up your home security might help you reduce your homeowners insurance premiums incrementally. But with a sale-leaseback, you can get rid of this expense –– and the myriad other costly homeownership expenses –– entirely.
With an Ohio or Cincinnati sale-leaseback, you can sell your house in Ohio to Truehold, then continue living in it as a renter. You get your hard-earned home equity without the stress of selling your home, and we cover routine expenses like property taxes, major repair costs, and, of course, homeowners insurance.
Learn more about our sale-leaseback by connecting with a trusted Truehold advisor, and discover the stress-free way to stay in your home.
1. Nerdwallet. Rental Market Trends in the U.S. –– Rents Accelerate Again. https://www.nerdwallet.com/article/finance/rental-market-trends
2. Progressive. What is homeowners insurance? https://www.progressive.com/answers/homeowners-101/
3. MarketWatch. Best Homeowners Insurance in Ohio (2023). https://www.marketwatch.com/guides/insurance-services/homeowners-insurance-ohio/
4. Bankrate. Factors that impact your cost of homeowners insurance. https://www.bankrate.com/insurance/homeowners-insurance/factors-that-impact-home-insurance-rates/
5. Policy Genius. How much can you save on home insurance with a security system? https://www.policygenius.com/homeowners-insurance/how-much-can-you-save-on-home-insurance-with-a-security-system/
6. Nerdwallet. 9 Ways to Lower Homeowners Insurance Rates. https://www.nerdwallet.com/article/insurance/save-on-homeowners-insurance#5.-account-for-home-improvements
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