Homeowners insurance is still going up, really rocketing, in Oklahoma, which already had the most expensive coverage in the nation.
It costs $5,858 a year for $300,000 worth of coverage with a $1,000 deductible, more than double the national average of $2,601, according to fresh statistics from Insurance.com, an online insurance information provider and marketplace.
In Oklahoma, it’s $499 a month, compared to $217 a month nationally. That’s a 10.2 percent increase from last year here, compared with a 6.8 percent increase for the nation.
As much as longtime Oklahoma homeowners are familiar with the high cost of insurance, newcomers to the state are often alarmed by the unexpected additional costs, said Vanessa Johnson, an agent with eXp Realty and president-elect of the Oklahoma City Association of Realtors.
“Out-of-state customers are often confronted with the sticker when they see Oklahoma insurance rates. The rising cost of insurance is widely recognized among Oklahomans,” Johnson said. budget and potentially limiting their options in certain price ranges.”
CONNECTED: Why are Oklahoma homeowners and auto insurance rates among the highest in the US? How you can lower your bills
High homeowners insurance is part of the cost of owning a home in Oklahoma
Rates vary depending on the prevalence of severe weather — damaging winds, tornadoes, hail, wildfires and, of course, hurricanes — where they hit — as well as what’s included in the standard policy. Earthquake insurance, for example, is not part of a standard insurance package and must be acquired as a rider paid for separately.
For an individual home, other factors come into play, such as population density, proximity to woods, dangerous road or intersection, proximity to a fire station or fire hydrant, crime rate and claims history for the particular area, according to Insurance.com.
Average cost of homeowners insurance for $100,000 worth of coverage in Oklahoma, where Insurance.com says it’s most expensive.
Homeowners insurance costs by coverage level in Oklahoma, according to Insurance.com:
- 200,000 dollars in coverage: $4442 per year, or $370 per month.
- 300,000 dollars in coverage: $5,858 per year, or $488 per month.
- 400,000 dollars in coverage: $7,012 per year, or $584 per month.
- 600,000 dollars in coverage: $8,426 per year, or $702 per month.
- 1 million dollars in coverage: $8,865 per year, or $749 per month.
CONNECTED: What you need to know about earthquake insurance in Oklahoma
Why homeowners insurance rates are going up in Oklahoma and everywhere else
Rising disaster risks are sending homeowners insurance skyrocketing, where most of the biggest perils originate, according to CoreLogic, a provider of financial, property and consumer information.
“In 2023, the U.S. finds itself in the midst of a property risk crisis that highlights the disconnect between insurance policy prices and the escalating risk that properties face from natural disasters,” CoreLogic said in its Severe Convective Storm Risk Report for 2024 What were once called “secondary” hazards are at the forefront of risk management decisions. Severe convective storms or severe thunderstorms in particular have caused tens of billions of dollars in insured losses in the United States—with hail dominating the loss landscape.”
CoreLogic said hail of 1 inch or larger hit more than 10 million single-family and multi-family homes in the lower 48 states last year, but more than half of those homes were in just five states: Texas, followed by Colorado, Illinois , Oklahoma and Missouri .
“The 2023 hail season was the most active in two decades, but the hail itself does not pose a risk,” CoreLogic said. “The combination of a highly active and intense hail season with U.S. migration patterns and higher construction material and labor costs has created a new scenario that carriers across the country will need to consider in future risk management decisions.”
From the Oklahoma Department of Insurance: Consume information about homeowners policies
Homeowners insurance goes through the roof that may not be covered
Rising insurance costs aren’t the only thing leaving homeowners cold, especially recently bought ones, said Jennifer Arsenault, managing broker for Flotilla Real Estate Partners in OKC.
“Oklahoma property insurance price increases are actually far worse than most people realize,” she said. “I’ve been teaching about this at the brokerage this week because we’re seeing more insurance companies denying roof claims, causing deals to fall apart, buyers losing money on inspections and appraisals and having to start all over again.
“It is important to note that the traditional flat fee deduction is being phased out. The more common 1% deduction is now moving to a 2% deduction, which could have significant implications.”
Homeowners insurance costs are often lost in the buying process
New homeowners often don’t see the costs coming because they’re hidden in the timing and mechanics of buying and insuring a home, Arsenault said.
“Sticker shock comes about 15 months after closing, when the buyer’s mortgage payment increases by over $400 because their insurance and their annual property tax have gone up,” she said. are assessed in arrears ― and to make up for the new rate, they collect the additional amount for the current year.
“The first year of insurance is paid at closing and the mortgage company collects a portion each month from the buyer to pay the same premium the following year. Most buyers don’t notice the letter from the insurance company after their first year of ownership, raising the annual premium.”
The five most expensive states for homeowners insurance
Here’s where homeowners insurance is most expensive, according to Insurance.com, based on $300,000 in coverage with a $1,000 deductible.
- Oklahoma: $5,858 per year.
- Kansas: $4,843 per year.
- Nebraska: $4,800 per year.
- Florida: $4,419 per year.
- Colorado: $4,099.
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Senior Business Writer Richard Mize has covered housing, construction, commercial real estate and related topics for the newspaper and Oklahoman.com since 1999. Contact him at [email protected]. Subscribe to his weekly Real Estate with Richard Mize newsletter. You can support Richard’s work and that of his colleagues by purchasing a digital subscription to The Oklahoman. Right now you can get 6 months of subscriber-only access for $1.
