Rising Homeowners Insurance Rates in Oklahoma: Understanding the Factors
As Oklahoma’s Insurance Commissioner, Glen Mulready, explains, homeowners insurance rates are a significant concern for Oklahomans, especially during severe weather seasons. The Oklahoma Insurance Department (OID) is committed to helping consumers understand the factors driving these rates.
The Role of the Oklahoma Insurance Department
The OID’s primary focus is on protecting consumers by ensuring insurance companies operate fairly and in compliance with the law. In 2024, the department returned over $12 million to consumers and answered more than 16,000 assistance calls. The OID also supported legislative changes, such as the Strengthen Oklahoma Homes Grant Program, to help reduce long-term costs for homeowners through more resilient construction.
Factors Driving Homeowners Insurance Rates
While hail is often associated with high insurance rates in Oklahoma, it’s not the only factor. The state’s diverse severe weather conditions, including high winds, tornadoes, wildfires, and flooding, contribute to the rising costs. Additionally, inflation and increased costs of materials and labor play a significant role. In 2023, Oklahoma’s top 20 homeowners insurers paid out $129 in claims for every $100 of premium collected. Although this ratio improved in 2024, with $97 in claims paid per $100 collected, it still indicates a challenging insurance market.
The Impact of Competition on Insurance Rates
A competitive insurance market is crucial for keeping rates in check. Oklahoma has over 100 licensed insurance companies offering homeowners policies, with more than 50 actively writing new policies. This competition provides consumers with choices and encourages insurers to offer competitive rates. Shopping around for insurance coverage can fuel this competition and potentially lead to better rates for consumers.
Conclusion
The OID is committed to ensuring that consumers are treated fairly, promoting a robust insurance market, and advocating for sustainable solutions. For assistance or insurance-related questions, Oklahomans can contact the OID at 800-522-0071 or visit oid.ok.gov. By understanding the factors that drive insurance rates and taking advantage of the competitive market, homeowners can make informed decisions about their insurance coverage.
