Hodgkinson started quicker, but was overtaken by Werro on the back straight was never overtaken after the first 200m.
Double-defending champion Hodgkinson was just behind as they rounded the final bend, but Werro would not be caught and crossed the finish in a championship record one minute, 54.81 seconds.
Hodgkinson claimed silver in 1:55.01 and the Netherlands’ Femke-Broeders Bol took bronze in a national record 1:55.54.