Storms in 2008 Drive Rates up in Ohio

According to the Columbus Dispatch, significant storm losses in the state in 2008 drove homeowners insurance rates up approximately 10 percent in 2009.

The Ohio Department of Insurance said the top ten insurers in the state reported an average jump of 9.7 percent.

Storms in the state,including the remnants of Hurricane Ike, caused losses of $1.4 billion in 2008, making the year the worst for weather-related damage in a century.

The Ohio Insurance Institute, a trade association that represents insurance companies, calculated the damage causes by Ike at $1.255 billion, thanks in part to 70-mph winds that took off roofs and smashed windows.

Mitch Wilson, a spokesman for the institute, said the event was “one for the record books,” the worst single weather event since Hurricane Xenia in 1974.

According to the Department of Insurance, State Farm, the biggest insurer in the state, had an average rate increase of 12.1 percent in 2009, followed by Allstate at 7.2 percent, and Nationwide at 14.3 percent.

Liz Christopher, a spokeswoman for Nationwide said, “The rate in 2009 was driven by current economic conditions and unprecedented catastrophe losses. Weather-related losses in 2008 contributed to the need for Nationwide and other insurers to raise rates.”