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Safe city means low premiums

Business — Newberg comes in near the top on list of state's cheapest insurance rates by city


Of the 57 cities included in a recent survey, Newberg came in 10th for the lowest homeowners insurance rate.

While that is good news for insurance customers, the factors that led to this ranking might be of more interest to residents.

To accurately compare rates across cities, the same scenario was considered against each city’s premium. The study assumed a benchmark of a 2,000-square-foot property with a home built in 2000 at an estimated reconstruction cost of $200,000, owned by a single 41-year-old male non-smoker who did not have any pets.

Insurance companies polled for information included Progressive, Liberty Mutual, State Farm and Farmers.

Under this scenario, the annual premium in Newberg came in at $872, well below the state average of $920 and far below the highest premium in the state, $1,162.

The biggest consideration in determining premiums is the number of claims made in the area, said Brian Quinn of ValuePenguin, the personal finance research firm that carried out the study.

“Ultimately, home insurance rates in a given area will be more affordable if residents of that town haven’t been making many expensive claims on their homes,” Quinn said. “This is obviously the case with Newberg.”

Unsurprisingly, areas with lower crime and property crime rates generally have lower insurance rates. Newberg is a perfect example: based on another study by the same company, Newberg and Dundee were together ranked the 10th safest cities in the state based on information from 2013 FBI crime statistics, with 22 violent crimes and 379 property crimes.

The cities narrowly beat Lake Oswego for the ranking but were bested by Sherwood, which came in as a slightly safer town. Newberg came in second as the safest city with a population of more than 20,000, behind only West Linn.

Although many of the cheapest municipalities for insurance are located within the Portland metro area, the state’s largest city does not fall among them — in fact, it is at the opposite end of the spectrum as the state’s most expensive city for home insurance.

Again suggesting a correlation, Portland also came in third from the bottom on the safest cities list. The least safe? Medford, by a sizeable amount.

For more information, visit http://www.valuepenguin.com/best-cheap-homeowners-insurance-oregon

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