Copyright: | (c) 2010 A.M. Best Company, Inc. |
Source: | A.M. Best Company, Inc. |
Wordcount: | 604 |
The average premium for the most commonly purchased homeowners policy in
The report cautions against making major comparisons between states because of variations in economic conditions, catastrophe exposure, real-estate values and construction costs from state to state. Specific policy limits and deductibles policyholders choose also affect premiums.
The premium figures are for HO-3, the common policies, which insure against all risks of direct loss on buildings, except losses specifically excluded in the policy, and insures against named perils coverage on personal property.
The HO-3 rate in
“The policy count and premium amount may significantly underestimate the cost of comprehensive homeowners insurance in large segments of the
Hagins cautioned that comparing
Both Hagins and Hanna noted that around one-third of Texans have the HO-3 policy, and Hagins said the department has asked the NAIC to consider an average of all types of homeowners’ policies.
“It is important to note, the office has since identified a number of noncatastrophe cost drivers that may increase premiums in the future,” Benner said in an email. “The office will continue working with legislators and newly elected principals to address these issues in the coming months.”
Sinkhole claims are driving rates higher in
The states with the lowest average premiums in 2008 were
Other types of coverage include HO-1, a basic policy covering named perils on buildings and personal property, and HO-2, which provides coverage for more perils than an HO-1 package. HO-4 offers named perils coverage for personal property of tenants, while HO-6 is available for condominium and cooperative unit owners. There are also HO-5 and HO-8 policies.
(By
More Articles