Average Redlands homeowners insurance among lowest of IE

Feb. 18--On a list of the top cheapest cities in California to buy homeowners insurance, Redlands is ranked around the middle and about at the state average.

All of the Inland Empire cities are above the state average, and, with the single exception of Rancho Cucamonga, all Inland cities' homeowners insurance averages are more expensive than Redlands.

"I think several factors contribute to Redlands' lower homeowners insurance rates when compared to their neighbors in the Inland Empire," said Eric Sammons of ISU Insurance Services-Cormarc Tasman in Murrieta. Redlands has "lower crime rates, less high-brush hazard areas than its neighboring cities, more established neighborhoods."

It also features fewer mixed industrial-residential areas, which means less risk of industrial fires spreading to homes like they did in Fontana with the recent pallet company fires, he said.

A study of data from California's Department of Insurance conducted by consumer finance website Value Penguin puts Redlands 122nd out of the 222 California cities, with Santa Maria as the cheapest, with an average one-year policy cost of $573; and Los Angeles as the most expensive at spot 222, averaging $958.

The state average falls between towns ranking 119 and 120 on the list, and is $773

Redlands is the third city listed above the state average at $777.

"Insurance is based on the cost to rebuild," said Vincent Aiello, an agent with Farmers Insurance in Redlands, who insures homes throughout the state.

He says some of the bigger factors in the cost will be the size of the home, the age of the home and the fire risk. Redlands certainly has large and old homes, but other Inland communities are in zones with higher fire hazards.

"Fire would be one of the biggest factors in a ranking like this, and with the drought it's being considered even more heavily," Aiello said. "That's likely why Yucaipa is more expensive and beach areas are cheaper than the Inland Empire as a whole."

The age of the home matters for a couple of reasons, according to Aiello. Newer homes are built with sprinklers and other fire-resistant features. Also, older homes feature materials that are more expensive to replace.

Why is the I.E. completely above the state average line?

Aiello could only speculate.

"Catastrophic events may be higher in the Inland Empire: wind damage, fire, theft," he said.

Rancho Cucamonga is one dollar above the state average and slightly cheaper than Redlands, at $774.

All other Inland Empire towns on the list are ranked more expensive: Chino is at $781; Ontario is $782; Temecula is $784; Riverside is $785; Hemet and Upland are $789; Murrieta is $790; Fontana is $793; Corona is $799; Colton is $800; Victorville is $806; Moreno Valley and Hesperia are $808; and Banning is $810.

Closer to home, Yucaipa averages $815; San Bernardino is at $826; Big Bear Lake residents pay $898 on average.

Prices within a city will vary too, based on such things as location, insurer and the details of the house.

"The outskirts will cost more than close to downtown," said Aiello. "(Rates are) based on fire line, so the greater the risk of fire, where there are slopes and hills and brush, will pay more than tracts. Insurance is based on risk. It's specific to address, not just the ZIP code. It can cost more one street over."

For example, this could be the case based on how far the home is from a fire department or a hydrant.

"There's a lot involved in home insurance, and it's gotten more complicated in the past year and a half. A lot of companies won't insure homes in the mountains, now, for instance."

Another factor influencing these findings could be the kind of consumers in the different regions.

"Customers have choices about what coverage they want to buy," said Aiello. "Escrow just cares about fire, but most people who buy homes want a comprehensive policy, so they'll pay extra to have that."

A comprehensive policy includes theft, wind, water, smoke and liability. A policy may cost more if a homeowner has certain breeds of dogs or a pool. Earthquake and flood insurance are always covered by separate policies.

Value Penguin analyzed more than 14,000 quotes from 54 providers. The data was collected for the same sample property across all companies -- a single family dwelling with frame construction, $200,000 coverage, and a $500 deductible.

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