Homeowners Insurance in Oklahoma

Oklahoma produces abundant natural gas, oil, and agricultural products. Home to many cowboys, Oklahoma sits at the top of the Southeast portion of the U.S., which means it has many tornadoes, landslides, earthquakes, and hurricanes. These events cause devastating property damage, which results in claims and insurance company losses. Since 1953, Oklahoma has had 173 federally declared disasters, and the rate of disasters per 1 million people is 42.32.

Along with plentiful homeowners insurance claims for hail and wind damage, Oklahoma residents also file claims for accidental water damage (due to burst pipes or plumbing issues), fire and lightning, theft and vandalism, other types of property damage, and liability issues.

In the U.S., no federal or state requirement forces homeowners to purchase home insurance. However, experts agree that everyone owning property should have at least some coverage. If you finance the purchase of your home, your lender will require that you buy a policy and keep it active with specific coverage levels until you pay off the loan.

The average rate for homeowners insurance in Oklahoma is $4,483 a year or $373.58 a month. That is considerably higher than the national average of $2,728 a year.

Providers across the U.S. decide which states to offer coverage in and what types to provide based on the potential hazards. Oklahoma is prone to many wild weather events, restricting the types and amounts of coverage residents can choose from. The available types in Oklahoma include:

Oklahoma residents experience various weather events, including hurricanes with torrential rains, and should consider flood insurance and an umbrella policy to cover the gaps left by others.

FEMA (Federal Emergency Management Agency) manages the National Flood Insurance Program (NFIP) through a network of 50 providers across the U.S.

Since most homeowners insurance does not cover floods, this supplemental coverage can repair damage and replace items after a flood. Depending on your options, it can cover the building and/or your personal belongings. This program is available to homeowners, renters, and businesses. Learn more about the program on FEMA's website.

The past decade has been hard on the homeowners insurance industry. Providers have experienced tremendous losses, and some have struggled to remain in business. As a result, they have had to increase rates across the country drastically. Over the past five years, rates have spiked by 34% and as high as 60% in some areas. In Oklahoma, rates have increased by 42.2%, considerably more than the national average, due to extreme weather and excessive losses.

Oklahoma is a powder keg of disastrous weather, including tornadoes, landslides, earthquakes, hurricanes, and floods. One claim for wind and hail costs insurers an average of $11,695. Fire and lightning damage claims cost an average of $77,340, and water damage claims average $11,650 per incident. From 2015 to 2019, Oklahoma insurance providers have lost a total of $726,138,800. Roughly 153,400 (9%) homes in Oklahoma are at risk of wildfires. From 1980 to 2024, Oklahoma has had 111 billion-dollar disasters. In 2023, the state had 48 tornadoes, causing two deaths and millions in damage. In 2022, Oklahoma had 2,811 wildfires, destroying 385,133 acres of land and destroying property. That destruction earned Oklahoma fifth place on the list of states with the most wildfires and damage in 2022.

Homeowners insurance premiums in Oklahoma are through the roof, making it hard for residents to afford coverage. Any relief would be welcome. Once you understand what affects home insurance rates, you can make adjustments to lower your expenses. The factors that dictate rates in Oklahoma include:

Some ways to save on homeowners insurance in Oklahoma include:

• Shop Around: Shop around for insurance providers and get multiple quotes before deciding who to go with.
• Raise Your Deductible: Increase your deductible as much as possible to lower your rates.
• Avoid Small Claims: Avoid filing small claims and wait until you need the insurance.
• Eliminate Risks: Eliminate any high-risk items that increase your insurance.
• Bundle Your Policies: Bundle multiple policies with the same carrier to reduce your premiums.
• Ask for Discounts: Ask your agent for any applicable discounts.
• Strengthen Your Home: Invest in a stronger roof, shatterproof windows, hurricane shutters, and wind-resistant siding to protect your home and reduce your rates.
• Remain Loyal: Stay with the same provider for many years, and they may reward you as a result.
• Boost Your Credit Score: Improve your credit. People with good credit earn better rates than those with poor credit.
• Improve Home Security/Safety: Boost your home security with a home security system or fire safety items, and your carrier will reduce your home insurance cost.

Home insurance covers any damage to your home after a qualifying event. If a disaster occurs, your homeowner's insurance policy will kick in and pay to repair or replace your home, restoring it back to its normal condition. Every policy has coverage limits, though. Some covered perils include fire, smoke, windstorms, hail damage, trees falling, theft, and vandalism. Along with dwelling coverage, home insurance also includes personal property coverage, other structures, liability, medical payments, and ALE.

It's easy to acquire a home insurance policy. First, select the provider you want to work with and contact them via phone. You can also apply online through their website or contact a local agent to help you set up coverage. You will have to pay the first year in advance, however, and after that, you can pay monthly through your mortgage escrow or once a year.

The most common home insurance discounts offered by reputable firms include:

• Senior Citizen Discount: Many firms offer discounts to senior citizens when they reach a certain age.
• Military Discount: Military members also get discounts from reputable insurance carriers.
• Occupational Discount: Teachers, firefighters, and government employees also get discounts.
• Bundle Discount: Bundle all your insurance with the same carrier, and they will cut you a deal on your insurance.
• Claims-Free Discount: Remain claims-free for as long as possible and get discounted by your provider.
• Loyalty Discount: They will reward you with a discount if you remain loyal to the same company for years.
• Autopay Discount: Sign up for autopayments to earn a discount on your home insurance.
• Paperless Discount: Going paperless is good for the environment and good for your insurer, so you will get a discount.
• Home Security Discount: Install a home security system, and your insurance provider will give you a discount.
• Green Discount: Go green and install eco-friendly devices, and your insurance carrier will discount your rates.
• Non-smoker Discount: Non-smokers earn an automatic discount for lower fire risk.
• Smart-Home Discount: Install smart home devices that monitor your home for disasters and break-ins, and your provider will reward you with a discount.
• Fire-Safety Discount: For a discount, install fire safety equipment like sprinklers, smoke alarms, and fire extinguishers.
• Location Discount: Some locations are better than others, and you could get a discount for living there.

Common Rates Offer by Homeowners Insurance Firms

Insuring a new home with code-compliant materials and safety features costs much less. In many cases, it can be as much as 40% less. Homes five years and younger can cost as much as 26% less for insurance. In Oklahoma, new homes cost roughly $80/month, considerably less than older homes. However, your actual cost will depend on the house size, deductible, credit score, and other factors.

Top 10 Home Insurance Firms in Oklahoma and Average New Home Savings

Upgrading your home benefits you and your family and can save you money on your insurance premiums. However, some home renovation projects actually add risk or value and increase your home insurance rates. Other upgrades may have no effect, depending on the situation.

Home Renovations that Increase Rates

Some home renovations that increase your rates include:

• Solar Panels: Solar panels are a great way to save money on electricity, but they are expensive to replace, so your home insurance premiums will increase.
• Adding a Pond: A pond can add serenity to your property, but it is a risk and will also increase your home insurance rates.
• Building a Treehouse: Treehouses give the kids hours of fun, but insurers say they are an attractive nuisance, and you will get hit with higher rates because of it.

Home Renovations that Decrease Rates

Some home renovations that decrease your rates include:

• Upgrade Wiring: Old wiring can lead to fires and destruction of your home. Upgrade yours and decrease your home insurance rates.
• Replacing Your Roof: Replacing your roof will make it more weather-resistant, and your insurer will reduce your rates.
• Beefing Up Home Security: Install a high-end security system to make your house less vulnerable. As a result, your insurance agent should lower your rates.

Typically, a new roof will save you money on your home insurance. However, if you choose luxury materials like a metal roof, it may be more expensive or cancel out any discount.

Regular maintenance upgrades and renovations are not covered by home insurance. Insurance companies only pay to repair or replace your home after a qualifying event. If someone gets hurt on your property during the renovation or steals from you, those things are covered under your policy. Other things not covered are rodent damage, animal damage, and pest infestations.

Always discuss any renovations with your insurance agent before starting work. They can help you understand how the project will affect your rates and coverage and if any changes are necessary.

People who rent homes rather than buy them also need homeowners insurance. This is where renters insurance comes in. However, it does not include any dwelling coverage. The property owner must handle that. However, it does cover your personal property and will pay to replace your items if they are stolen or destroyed in a covered peril. Renters insurance also includes liability coverage, medical payments, and loss of use coverage. Some covered disasters are wind, hail damage, smoke, fire, theft, and vandalism. Every policy has limits; if you have expensive items like jewelry, furs, or costly art, those will not be covered.

Some of the items renters insurance will replace are:

Insurance providers price renters insurance based on three concepts; they are as follows:

Oklahoma renters pay an average of $30 per month, which is higher than the national average of $15-$20/month. Living in the suburbs may be cheaper than living in the city, where crime is higher.

Condo insurance is for people who buy condos. It is similar to homeowners insurance, but it differs slightly. Each condo development has its own master policy, which covers the dwelling and pays to repair or replace the building and restore it back to its original condition (when it was first built). The problem is that condo owners have long since upgraded the interior with modern fixtures, so condo insurance pays to restore it back to its most recent condition. Condo insurance also includes liability, medical payments, personal property, loss of use, and loss assessment coverage.

Unlike renters insurance, condo insurance has dwelling coverage, but it only covers the interior, referred to as "walls-in". Plus, the liability insurance only covers people who are injured inside the condo, not outside or on common grounds.

After a fire, windstorm, theft, or other disaster, condo insurance pays to replace the following items:

• Appliances
• Flooring
• Interior Walls
• Wiring
• Plumbing
• Light Fixtures
• Cabinets
• Countertops
• Personal Belongings

Oklahoma condo owners pay an average of $1,071 yearly or $89 monthly for insurance. That includes $60,000 of personal property coverage, $300,000 of liability, and a $1,000 deductible.

Some ways to save on the cost of condo insurance include:

• Shop Around and Compare Prices
• Bundle Your Home and Auto Together
• Increase Your Deductible
• Look for Other Discounts
• Install Safety Features
• Upgrade Your Home with a Security System
• Keep Your Credit Score High
• Avoid Small Claims

Homeowners' insurance providers are in free fall, especially in places like Oklahoma, which have experienced staggering losses after frequent natural disasters and costly property damage. Up until last year, insurance carriers had been relatively profitable. But, in 2023, the state suffered eight separate billion-dollar disasters, upending any profits and creating significant losses for the first time in a decade. If this trend continues, insurers may pull out of Oklahoma slimming competition and leaving residents without any options for coverage.

The state of Oklahoma, despite the dangers, has been lucky up until now. The potential perils include floods, tornadoes, landslides, earthquakes, and hurricanes. However, billion-dollar disasters can make or break providers, and if these weather patterns continue, insurance providers may need to limit coverage or cancel high-risk clients in dangerous areas.

No federal program exists to regulate the home insurance industry. Each state handles it internally. They appoint a specific department to monitor providers and rates, ensuring fairness. They also take customer complaints, perform investigations, and sanction guilty firms. In Oklahoma, that agency is the Insurance Department, located at 3814 North Santa Fe, Oklahoma City, OK 73118.