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Cost of Home Insurance Far Below Average : Survey: County premiums are less than in most of state because of lower losses and the quality of fire and police protection.

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SPECIAL TO THE TIMES

Homeowner insurance rates in Ventura County are among the lowest in the state, averaging about $180 less per year than those charged in Los Angeles and Orange counties, according to a study conducted by the California Department of Insurance.

Residents of the county’s two largest cities, Oxnard and Thousand Oaks, pay an average annual premium of $373 for a $150,000 homeowners policy while the same policy costs an average of $553 in metropolitan Los Angeles and Orange County and $518 statewide, the department said.

County residents thus are paying 33% less on average than their counterparts in Los Angeles and Orange counties and 28% less than the statewide average, the department’s 1991 rate comparison survey shows.

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The study, conducted among the 26 largest companies that write homeowner insurance in the state, found that Oxnard residents pay an average of $369 a year and Thousand Oaks residents an average of $377 for such coverage.

“A few counties, such as Santa Barbara, may have average premiums a few dollars lower, but on the whole I would say the rates in Ventura County are among the lowest in the state,” said Khalid Al-Faris, head of the Insurance Department’s statistical analysis bureau, which conducted the study. The Santa Barbara city average premium for the same policy is $363, Al-Faris reported.

Ventura County’s rates are lower than those charged in most other counties mainly because insurers tend to suffer lower losses here, he said.

“Other factors, such as crime and the quality of fire and police protection, also are considered by the companies in setting their rates,” he said.

He said Oxnard and Thousand Oaks, the first and second largest cities in Ventura County, were chosen for the study because those cities are considered representative of the county as a whole.

Dick Powers, president of the Personal Consumer Services Division of Transamerica Insurance Group, said the group’s homeowner premiums in Ventura County are among the company’s lowest in California “because claims tend to be lower in Ventura County than elsewhere in the state, and our claims experience determines our rates.”

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Powers, like Al-Faris, cited strong fire protection as a major reason for the county’s below-average rates.

“But many things contribute to favorable rates,” Powers noted. “We also consider claims for everything from water damage to theft.”

Transamerica charges $339 annually for a $150,000 homeowners policy in both Oxnard and Thousand Oaks. The company’s statewide average premium for the same policy is $478.

Patty Lombard, executive director of the Western Insurance Information Service, a public relations arm of the industry, suggested that the main reason for lower rates in Ventura County is that construction costs are lower than in more urbanized areas.

“Homeowners’ premiums pretty much track the cost of repairing or replacing a structure,” she said. “For various reasons, construction costs are still lower in Ventura County than in most other parts of the state.”

The hypothetical policy used in the study covers a wood-frame house built in 1950. The policy has a $250 deductible clause, includes $100,000 in personal liability insurance and covers the home’s contents for $75,000.

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The policy’s face amount of $150,000 is less than average home prices because it covers a dwelling only and not the land on which it is built, Al-Faris explained.

Al-Faris reiterated a stand taken by his boss, state Insurance Commissioner John Garamendi, who has urged homeowners to “shop around” in order to get the best insurance deal.

“Price is important, but consumers should also consider the kind of coverage a policy provides,” Al-Faris said. “For instance, homeowners coverage is comprehensive and should include such features as a family’s additional living expenses while its home is being rebuilt.”

Some insurance company representatives criticize Garamendi for placing too much emphasis on price in comparing policies.

“Service is important, too,” said one insurance agent, who requested anonymity. “For instance, if you can’t get hold of somebody to process your claim, you don’t have much of a bargain.”

According to the department’s study, Continental Insurance Cos. charges the lowest premium in Ventura County--$269 for a $150,000 policy in both Oxnard and Thousand Oaks.

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The highest rates are $526, charged in Thousand Oaks by Farmers Insurance Group, and $503, charged in Oxnard by both Chubb Group and Royal Insurance Group, the survey found.

Renters insurance, too, is relatively cheap in Ventura County, the Insurance Department reported.

The average premium for a $25,000 tenant/renters policy is $202 in Oxnard and $199 in Thousand Oaks--nearly 20% below the statewide average of $249.

But earthquake insurance in the county is somewhat costlier than the statewide average, the study found.

Earthquake coverage costs an average of $2.15 for each $1,000 of a home’s value in Oxnard and $2.03 per $1,000 in Thousand Oaks. That compares to an average of $2 per $1,000 both statewide and in Central California.

Proximity to earthquake faults is the main factor in determining those rates, industry sources said.

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COMPARING HOME INSURANCE RATES Regional average, in premium dollars per year Thousands Oaks: $377 Oxnard: $369 Central California: $495 Greater Los Angeles, Orange County: $553 Statewide: $518 Homeowner insurance rates in Ventura County’s two largest cities are among the lowest in the state. Figures show average premiums, by company, for a $150,000 policy. Rates in Thousand Oaks and Oxnard are compared with those in the Central California region, which includes the county, and in the state as a whole.

Thous. Central Company Oaks Oxnard Calif. State 20th Century Insurance $326 $326 $411 $412 Cigna Group 338 338 391 414 CNA Insurance Companies 308 308 391 420 Prudential of America 326 326 441 462 Residence/Western Group 337 398 464 473 Ohio Casualty Group 304 304 457 477 Transamerica Corp. Group 339 339 446 478 Continental Insurance Companies 269 269 457 479 Fireman’s Fund Companies 317 317 444 488 Auto Club of So. Calif. (AAA) 387 387 452 491 Home Insurance Companies 352 333 498 498 Safeco Insurance Companies 481 481 435 500 Liberty Mutual Insurance Companies 372 372 482 500 California Insurance Group 376 376 483 519 Allstate Insurance Group 412 366 521 522 State Farm Group 395 387 521 522 Aetna Life & Casualty 382 382 522 526 Republic Financial Services 400 400 514 531 Reliance Group 351 351 491 540 ITT Hartford Insurance Group 357 357 495 549 Farmers Insurance Group 526 370 561 555 Farmers Home Group 404 404 597 557 Auto Club of No. Calif. (AAA) - - 592 579 Century-National Insurance 481 481 617 606 Royal Insurance Group 503 503 640 669 Chubb Group of Insur. Companies 503 503 621 714 AVERAGE 377 369 495 518

Note: Central California region includes, among others, the cities of Thousand Oaks, Oxnard, Santa Barbara, Fresno and Bakersfield.

Source: California Dept. of Insurance

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