Ohio Homeowners Insurance

Homeowners insurance is one of those life necessities that we know we have to have, but don’t spend too much time thinking about it.

While homeowners insurance coverage is not a legal necessity, it is mandatory when it comes to obtaining and keeping a mortgage. Lenders need to know that their investment is covered so that they don’t lose money in the event of a loss of the property.

Be sure to use our FREE comparison tool above to start your search for homeowners insurance.

Why do you need to have coverage?

Homeowners have two main reasons for obtaining a homeowners insurance policy. Mortgage companies require a policy at least enough to cover the mortgage amount. (This amount is typically at least 80% of the replacement cost of the home.)

Additionally, as a homeowner, you should have protection from damage to your property and personal items as well as liability due to guest’s bodily injury.

Who needs homeowners insurance?

Homeowners are not the only people who need insurance coverage. People who rent a home (a house, apartment or condominium) also should have a type of coverage (renter’s insurance) to protect their personal property for damage or loss.

Renter’s insurance can also serve as protection against liability from injuries to people.

What does homeowners insurance cover?

Homeowners insurance covers the policyholder from a wide variety of risks and provides the ability to continue to function, then rebuild their life after damage has been done. Policies include coverage for the following items. Damage caused by:

• Fire and/or smoke
• Lightning
• Explosions
• Riots or civil unrest
• Aircraft and/or vehicles
• Vandalism and mischief
• Flooding due to issues with appliances, plumbing, HVAC and/or sprinkler systems
• Damage due to malfunctioning electrical components

Polices also cover the cost of repairing or rebuilding a home after the damage has occurred and the cost of temporary shelter if the home is uninhabitable while reparations are completed.

Coverage also extends to provide reimbursement for the cost of damage to the home’s contents; theft of personal property; and outbuildings, landscaping, hardscaping (e.g., walks, walls, pools). In many cases, coverage extends to medical expenses for any guests injured on the property.

What doesn't homeowners insurance cover?

Exclusions depend on the policy purchased and coverage offered by the insurer. However, frequent coverage exclusions include damaged caused by any of the following:

• Mold
• Sewer backup
• Sinkholes
• Termites
• Nuclear accidents
• Some acts of terrorism

While Ohio is not in a region plagued by natural disasters, it is important to note that some insurers will exclude damage caused by natural disasters in certain areas of the country.

How many companies offer homeowners insurance in Ohio?

More than 100 companies offer homeowners insurance coverage in Ohio. It is important for any consumer to thoroughly research the policies available to select the coverage best suited to your situation and the best rate for you.

How can I keep my premiums down?

Insurance coverage of any kind includes different types of policies and varying rates dependent upon a number of factors. Consumers need to shop around for the best value and best policies. If you find that the rates you are receiving for the coverage you would like are too high, insurers offer many ways to help you cut costs.

• Protect your home with a monitored security system, deadbolts and outdoor lights.
• Keep fire extinguishers available throughout the house particularly in the kitchen and near any kind of major appliance.
• Ensure that your plumbing, heating/air conditioning, electrical wiring and fireplaces are regularly inspected and maintenance is completed to avoid any major issues.
• Regularly clean gutters and downspouts and ensure that roofing is checked for leaks.
• Keep flooring, steps, walkways and railings in good condition to help prevent accidents.

Additionally, directly related to coverage, you can:

• Select a higher deductible.
• Talk to your insurer (or prospective insurer) ask about discounts and group coverage. Many insurers offer discounts or preferred pricing for new construction, monitored security systems, multiple policies, alumni groups and employees of some companies.
• Review your policy every year to make sure that your coverage levels are appropriate and any home or personal property additions are covered.
• Do not insure the land around your house. Damage to actual property are less likely.
• Keep a close eye on your credit. Good credit helps to lower the cost of coverage.

What do insurers consider as risk factors which may add to the cost of my coverage?

Insurer’s keep a close eye on what claims are filed by homeowners. A high amount of claims of a certain type mean other insureds or potential insureds will be a charged a higher premium of they have the same or similar risk factors.

For example, the list below includes some of the circumstances under which an insurer may charge a higher premium for your coverage.

• Some dogs are considered “aggressive” and put the homeowner at higher risk for claims due to dog bites or issues. Among those dogs that an insurer may deem as high risk are German shepherds, great danes, Siberian huskies, dobermans, rottweilers, pit bulls and akitas.
• Low credit scores can indicate that a potential insured is at higher risk for not paying their premiums.
• Trampolines
• Swimming pools
• Fire stations and/or fire hydrants beyond a certain distance from the dwelling
• Poor maintenance of the home such as leaking roofs and old appliances increase the risk of a claim being filed.
• High number of previous insurance claims.
• Neighborhood crime rates

What are some recommendations while I shop for coverage?

Have a potential insurer price the difference between guaranteed replacement cost as well as “actual cash value.” Typically policies that offer guaranteed replacement costs may cost a little more, but will pay for replacements of items regardless of their current condition. On the other hand, cash value policies include deductions for depreciation and may leave you paying much more to get your house back to its condition prior to the claim.

• Purchase separate policies or endorsements for home businesses. Do not tie them into the same policy because each will have its own needs.
• Find out if you are in a flood zone and will need any additional coverage.
• Keep an inventory list of your possession. Many insurers recommend walking through the home while taking a video to prove that you owned items that you may ask for reimbursement for during a claim. Make sure to include fine art, family heirlooms, collections, furniture, televisions, electronics, musical instruments, sporting equipment, clothing and other day-to-day items. Keeping receipts, appraisals, photographs or lists of the items in a fire safe or safe deposit box is the best way to keep track in the event you need to file a claim. Make sure you update your list annually.
• Consider coverage “riders” for certain collections or possessions. For example, have a special rider for the jewelry you own to ensure that it will be covered.
• Check the ratings of potential insurers to see if they have good histories of paying claims and are financially stable. Rating companies include The A.M. Best Company, Moody’s Investor Service, and Standard & Poor’s. The higher the rating the more reliable the insurer will be.

Remember, as an Ohio resident, you are responsible for anything that happens on your property, even if it is second-hand such as guest drank at your home then had an accident after they left. Make sure you have coverage to protect yourself from liability claims.

The Ohio Department of Insurance offers many homeowner related publications to help you understand what is required and what is recommended for your insurance policy. With some research and shopping around, you will find the best coverage for you to keep you and your family protected in the event of a claim.

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