NAIC Study Finds Wis. Has Lowest Homeowner Rates

A study by the National Association of Insurance Commissioners (NAIC) found that Wisconsin has the lowest prices for homeowners insurance in the U.S.

Wisconsin insurance commissioner Connie O’Connell expects these results to be part of a long-term trend: “Insurance for homes—and also cars—is comparatively cheap in Wisconsin. Our market is very competitive, so when people shop around, they can often find a good price.”

For the most common homeowner’s insurance coverage package written, Wisconsin premiums averaged $266 annually, while the national average was $487. The highest state was Texas at $861 annually. The study calculated prices for a variety of types of coverage and home values. Wisconsin ranked the lowest, or near the lowest, in every category.

In addition, Wisconsin consistently ranks in the bottom 10 states for automobile insurance premiums. Insurance companies here set their rates based on losses, investment income and competition among insurers. Wisconsin has a very competitive insurance market place.

“We have more than 200 companies that sell homeowner’s insurance here, and we have educated consumers,” O’Connell said. “Under those conditions, consumers can get the coverage they want from a company they choose at a good price.”

The NAIC study was published in November 2001 using nationwide data from 1999; the annual survey uses two-year-old data because of the time required for reporting and compilation.

“The insurance market changes constantly, but Wisconsin has fared well over time,” O’Connell said. “We are, however, seeing a rise in homeowner’s rates as a result of increased claims due to weather-related catastrophes and reduced investment income for insurers.”

Topics Homeowners Wisconsin