Logan higher than state average regarding homeowners insurance

Published MARCH 4, 2015

For most people, the single largest investment they will ever make is in purchasing a home. According to information provided by the Census Bureau, almost five million homes are sold each year in the United States. In Ohio, the average cost as stated by Zillow.com, an online real estate database, the median cost of a house in Ohio is $127,150.

Like with any large investment, such as a vehicle, insurance is offered in case of damage to the property.
A recent study by a personal finance website known as ValuePenguin showed that homeowners insurance in Logan is currently significantly higher than the Ohio average, and is the 21st most expensive city of the 133 that were taken into consideration for the study.
ValuePenguin surveyed four national insurers to collect their data on annual insurance premiums; Nationwide, Progressive, Liberty Mutual and State Farm.

“The cities were just chosen at random, although we made sure that some of the largest municipalities were included,” explained Ting Pen, author of the study. “We generally know that factors such as severe weather events and higher than average property crime rates helped to explain such fluctuations in rates.”

According to Pen, the wide range of different geographies in Ohio helped to contribute to an incredibly wide fluctuation in costs, with the study showing a fluctuation of an incredibly 91 percent.

This means the depending on where an Ohio resident lives, they can pay a difference of $899 each year.

Pen stated that this fluctuation is actually fairly normal for Ohio.

“This is usually something that comes as surprise to most consumers, since they’re not usually aware that costs can vary so drastically from one city or town to another,” said Pen.

The average annual cost for homeowners insurance in Ohio is $1,177. In Logan, the average annual cost is $1,290.

“That’s because of protection class rating, which is how far you are from a fire department and how far you are from a fire hydrant,” explained Andrew McGhee, Insurance Agent with Logan Insurance Agency Inc.

“We have a lot of people who live outside of town, so it takes longer for the fire department to respond, creating more potential for more damage and higher costs for repairs. If everyone lived in town it would be a much lower rate,” he added.

“The location of the property affects it, Logan does have a lot of rural areas and if you’re outside the city limits it is higher than within the city limits,” agreed Shelley Faught, agent with American Family Insurance. “There are a lot of different variables that affect the price, one of them is credit, claim history goes into figuring price as well. So if we’ve had a major storm in the area and had everyone making claims, that would raise the cost as well. I would say location, claims, and credit would be the three main things.”

Corby Leach, CEO and Owner of Corby Leach Insurance, was skeptical of the information.

“I question the source, I’m not sure we are higher,” said Leach. To find more information, The Logan Daily News was referred to Angie Rinock, Media Relations Officer for State Farm. Unfortunately Rinock was unavailable for comment, however according to Pen, State Farm was one of the four national insurers to participate in the survey.

The Logan Daily News also attempted to contact Dan Vanwormer, of Nationwide Insurance, but was unable to get in touch with him for a comment.

According to the study, the benchmark property used was a 2,000 square foot house worth $200,000. The study indicated that costs can vary widely by insurer as well, and cited an example in West Unity, Ohio that had a difference of $1,254 between the most expensive premium offered and the least expensive.

In the end, the cost for homeowner’s insurance is best discussed with a local agent, who will be able to work with each individual on a plan that best suits their needs.