Date: March 27, 2002
For more information contact: Kyle Richmond (608) 267-9336 or kyle.richmond@oci.state.wi.us

Madison, WI--Wisconsin has the lowest prices for homeowner's insurance in the United States according to a recent study by the National Association of Insurance Commissioners (NAIC).

The NAIC's annual survey, published late last year, showed Wisconsin had the lowest rates in many categories of homeowner's insurance. More good news for Wisconsin property owners is that the results are part of a long-term trend, said state Insurance Commissioner Connie L. O'Connell.

"Insurance for homes - and also cars - is comparatively cheap in Wisconsin," said O'Connell. "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."

If homeowner's insurance prices rise, insurance buyers can use the following shopping tips from the OCI to keep costs lower:

• Shop around. Talk with friends and insurance agents, and check the Internet.
• Increase your deductibles to lower premium payments. While the out-of-pocket cost is higher when damages occur, the money saved by lowering the premium with a higher deductible may more than offset that cost.
• Consult your agent. Ask for ways to lower your bill.
• Double-check your coverage and premium calculations. Make sure your property has been given the correct classification.

For more information about homeowner's insurance rates, get the OCI's brochure "Consumer's Guide to Homeowner's Insurance." It's available at the OCI Web site at http://oci.wi.gov/pub_list/pi-015.htm or by writing to OCI, P.O. Box 7873, Madison, WI 53707-7873. Contact the OCI toll-free at 1-800-236-8579 or by electronic mail at ociinformation@wisconsin.gov.