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With a friendly population, a number of outdoor attractions, and affordable living, Oklahoma is home to many. However, the Sooner State has an extremely high risk of natural disasters compared to the rest of the country.
Oklahoma has had 150 events that have caused devastation since 2000, excluding COVID-19. 52 of them were declared significant disasters. Natural catastrophes strike Oklahoma on a regular basis, causing over $1 billion in damage.
This is why safeguarding your real estate investment with homeowners' insurance is imperative. Navigating the intricacies of homeowners' insurance in Oklahoma is no easy task, which is why we have created this comprehensive guide.
Here, we'll talk about what home insurance is and how to choose a homeowners' insurance company. We'll also provide you with our top five recommendations.
Understanding Oklahoma Homeowners Insurance
Before choosing an insurance company and deciding on the coverage limits, you must first understand what home insurance is. In a nutshell, homeowners' insurance is designed to provide a financial net that ensures that repairs to your home are paid for.
It also includes coverage for personal property like jewelry and other valuables, in addition to liability coverage that will pay medical bills in the event that someone is injured on your property. This prevents you from having to outlay large sums of money out of pocket.
Average Home Insurance Costs in Oklahoma
In Oklahoma, the average cost of home insurance annually is $3,659 for a dwelling coverage of $250,000, according to Bankrate. This rate is substantially greater than the national average for comparable coverage, which is $1,428 per year.
Oklahoma is the costliest state in the US for home insurance, which is because the state sees more claims than many other states, which normally pushes up the cost of homeowners insurance. This higher claim rate is because Oklahoma is located right in the heart of what was traditionally known as Tornado Alley – a territory in the United States where tornadoes strike often.
Although this is one of the main factors that drive the cost of insurance premiums in the state, it's important to remember that there are a number of other elements that influence the price you pay. This includes the following:
- The location of the property
- Replacement cost (or cost to rebuild the home)
- How old the property is
- Maintenance practices
- Security features
- The type of coverage and coverage limits you choose
- Your claims history and credit rating
The good news is that most insurers offer discounts on their policies, so be sure to enquire about the discount structure for each company when doing your research.
Homeowners' Insurance vs. Landlord Insurance
If you are a property manager, it's important that you understand the difference between homeowners' and landlord insurance. The former is designed to protect property owners who live in the home, while the latter is specifically tailored to provide rental income protection. It also has liability coverage that will pay for the damages if the tenant is injured on-site.
Here are a few scenarios where it is a better idea to have homeowners' insurance rather than landlord insurance:
Vacant Property
Suppose your property is left vacant and will not be occupied by tenants. In that case, it's best to have home insurance to ensure that you are covered for any structural damage that occurs.
Temporary Absence
If you intend to leave for a short period, it's important to ensure that your home is still covered. Natural disasters can strike while you're away, so protecting your investment with homeowners' insurance is important.
Transition Period
Are you between tenants? Homeowners' insurance might be the better option until you have renters move in. However, it's always best to consult your insurance provider to ensure that you have the best coverage for your unique situation.
Home Sharing
Sharing a home with a tenant can be a mutually beneficial arrangement. However, you must choose your insurance coverage wisely. Liability coverage is important in such situations, so be sure to take a close look at this when deciding on an insurance company.
How to Choose an Oklahoma Homeowners Insurance Company
Now that you understand what homeowners' insurance is let's delve into the criteria for a reliable insurance provider.
Unique Policy Needs for Oklahoma Homeowners Insurance
Oklahoma's notorious affiliation with natural disasters makes navigating homeowners' insurance somewhat difficult. The state is prone to flooding, earthquakes, and sinkholes, so when determining the type of coverage you would like, it is important to think about some of the risk factors that come into play.
In the section below, we will talk about common coverage types that many Oklahoma homeowners add to their policies.
Flood Coverage
The truth is that Oklahoma is no stranger to floods. In fact, 11,255 properties in Oklahoma City alone have a 26 percent chance of flooding, according to Riskfactor.com.
Standard home insurance coverage does not cover flood damage. To ensure that your home in Oklahoma is covered, you'll need to get an additional flood insurance policy.
Liberty Mutual sells flood insurance policies in collaboration with the Federal Emergency Management Agency (FEMA) and its National Flood Insurance Program (NFIP). While flood insurance must be acquired individually and is generally optional, if you reside in a high-risk flood zone, it may be necessary to receive a house loan.
Earthquake Coverage
With earthquakes becoming more common in the state, you might want to think about including an earthquake endorsement when insuring your home. Most companies provide this add-on, which you can add to your home insurance policy for additional protection. If you reside in a particularly high-risk location, you may require separate coverage.
Sinkhole Coverage
Since Oklahoma sits on karst land, which is formed from carbonate rocks, it is one of the leading states with regard to sinkholes. It's important to look closely at the kind of coverage your standard policy offers, as some will include sinkhole coverage, while others require that you purchase it separately.
Mold and Water Damage
Another type of coverage to consider is for mold and water damage. Water ingress caused by flash floods can also lead to the growth of mildew and mold. This can significantly reduce the quality of your air and lead to several illnesses. It's important to check whether your insurance policy includes this kind of coverage.
Evacuation and Additional Living Expenses
When faced with the threat of impending disaster, you might need to evacuate your home and move to a safe place. This type of coverage ensures that your living expenses while you are unable to reside in your home are taken care of. This covers the cost of accommodation, food, and more.
Keep in mind that there are many other endorsements or additional policies that you can add to ensure that you are adequately protected. It's important to conduct thorough research to learn more about your property's location and the risk factors that may influence the level of insurance coverage required.
Other Factors to Consider When Assessing Oklahoma Home Insurance Companies
Now that you understand some of the coverage types that might be worth considering let's talk a little more about some of the factors that may determine which insurance company you choose.
- Your needs. The truth is that insurance requirements will vary from one household to the next, so it's important to think about what you hope to achieve with your policy. Do you require flood insurance because the area you live in is at risk? Will you also require additional earthquake or sinkhole coverage? Make a list of these needs so that you do not lose focus of your objectives when looking for an insurance company.
- Reputation. Make sure you're obtaining quotes from a number of different providers when pursuing insurance coverage. Consider their reputation in the industry. You can look at customer review sites and independent agencies like A.M. Best to learn more about their reputation and reliability.
- Coverage options. Because Oklahoma is prone to natural disasters, it's important to choose an insurer that offers a wide range of add-ons or has a comprehensive standard homeowners' insurance policy to ensure that you are able to extend your coverage later on if the need arises.
- Customer service. When vetting any company, it's important to look at the level of customer service it provides. After all, this is a provider you are going to have to work with for many years, so it helps to be treated with respect and care.
- Discounts. Insurance can be costly, which is why you must look for ways to save money. The good news is that many Oklahoma homeowners' insurance companies offer discounts. If you take multiple policies from the same company, home and auto insurance, for example, you can expect to save on the cost of your premiums.
Before you make your decision, it's important to carefully review the details of the policy and ensure that you understand the inclusions, exclusions, limitations, and deductibles. Before you sign on the dotted line, ask for clarification if anything is unclear.
Although it may seem unnecessary to put in this much effort, homeowners' insurance is a long-term commitment, and given Oklahoma's affinity to natural disasters, you must ensure that you have covered all your bases.
The Best Home Insurance Companies in Oklahoma: Our Top Five Picks
To make your life a little easier, we have narrowed your options down. Using the criteria listed above, we have identified the top performers. Here are five great Oklahoma home insurance companies to consider:
1) State Farm
As one of America's largest insurance providers, State Farm is definitely a strong contender for home insurance in Oklahoma. Because of its consistent performance, generally good ratings from customers, and wide variety of options for customizing your coverage, we have given it the number one spot on this list.
Coverage and Features
State Farm offers a wide range of coverage options for homeowners in Oklahoma. This includes protection for rental properties, farms, condos, manufactured homes, and more. When assessing the suitability of this insurance company, we also looked at its financial stability, and State Farm did not disappoint. It was given an A++ A.M Best rating.
You can expect the following with a standard plan:
- Dwelling coverage
- Coverage for other structures
- Additional living expenses
- Personal property coverage
- Medical payments
- Personal liability
While State Farm does not offer flood insurance in Oklahoma, earthquake protection can be obtained for an additional fee. Flood insurance is available in Oklahoma via the National Flood Insurance Program, so this is certainly not a deal breaker.
What makes State Farm a particularly attractive option is that if you're searching for insurance for specific items or specialty products, such as keepsakes, hobbies, or your garden, State Farm may be able to help.
Discounts
One of the only downsides is that State Farm insurance premiums can be high, so it is important to look at the discount structure to ensure that you are saving as much as possible on your policy. Here are some of the discounts available:
- Multi-policy discount. If you bundle policies with State Farm, you can save on your premium.
- Claims-free discount. Have a non-existent claims history? You can save on your homeowners' insurance with State Farm!
- Utility rating discount. In some cases, you may qualify for a discount if you update the utilities in your home.
- Protective device discount. Suppose your home has several security features, such as a burger alarm. In that case, you could qualify for a discount.
- Roofing discount. If you have impact-resistant roofing materials, you may also be eligible for a reduction in insurance premiums.
2) Chubb
Chubb is another insurer worth considering if you own a high-end property in Oklahoma. The company offers its services in many states and is renowned for its reliability and reputation.
Coverage and Features
Chubb often services wealthy policyholders with high-value houses, providing generous coverage limits and a plethora of benefits. In addition to industry-standard coverage, the firm covers water damage caused by backed-up drains and sewers, for example. The cost of ensuring that your property meets current building requirements during rebuilding following a claim is also included as standard.
Homeowners in Oklahoma may also obtain complimentary Wildfire Defense Services. These services include individualized advice for home protection and the dispatch of firefighters to your property if a wildfire is on its way.
Discounts
Chubb offers its policyholders a number of options to save money on their homeowners' insurance in Oklahoma. Here are some of the discounts it offers:
- Multi-policy or bundling discount
- Claims-free discount
- No mortgage discount
- Gated community discount
- Superior protection discount (for homeowners who have a security system, sprinkler system, etc.)
- Discount if you have a backup generator
- New or newly renovated home discount
3) Farmers Insurance
If you have been researching homeowners' insurance companies in Oklahoma, the chances are that you have already come across Farmers Insurance. This well-known company offers a number of benefits for those hoping to safeguard their properties against the perils of natural disasters, personal liability, and more.
Coverage and Features
Farmers plans may offer two types of essential protection: extended replacement cost and dwelling coverage. This is beneficial because extended dwelling protection provides additional coverage for your home's structure, whereas replacement cost coverage provides a bigger compensation for stolen or damaged possessions.
Some Farmers plans also include benefits that may save you money. The falling deductibles feature, for example, allows you to save $50 on your deductible every year. Here's what you can expect from a standard home insurance policy from this provider:
- Dwelling coverage - $489,000
- Replacement cost
- Medical payments - $1,000 per person
- Personal liability coverage - $300,000
- Other structures - $48,900
- Personal property coverage - $268,950
- Loss of use - $97,800
Discounts
You can obtain the following discounts from Farmers Insurance in Oklahoma:
- Multi-policy discount
- Discount if you have a new home
- Claims-free discount
- Reduction in premiums for using certain roofing materials
- Protective devices discount
- Discount if you are a non-smoker
4) Oklahoma Farm Bureau Financial Services
Farm Bureau is often the insurer of choice for most Oklahoma homeowners. That's because it offers the most affordable conventional house insurance policy at just $121 per month or $1,452 annually. This is significantly less than the statewide average yearly rate of $2,278.
However, it has an A.M. Best rating of B++, which is why it is number four on our list. Nevertheless, there are still many compelling reasons to consider the company for homeowners' insurance.
Coverage and Features
This insurance provider is on par with the industry standard, but it also offers a number of unique offerings that make it an attractive option for many. One of the perks of choosing this provider is that you'll need to sign up for a membership for the homeowners' insurance required to cover your home.
Although you'll have to pay a membership fee, you will have access to a number of benefits, which include discounts on rental cars, hotel stays, and more.
Discounts
In addition to affordable insurance coverage, Farm Bureau also offers a number of discounts. This includes the following:
- New home discount
- Discount for protective devices
- New roof discount
5) The Hanover
The Hanover provides homeowners with numerous options. You can choose an auto/home bundle, a policy specialized for high-value properties, or a basic home insurance policy on its own. You can further tailor your insurance coverage by selecting add-ons such as guaranteed replacement cost coverage, designed to cover the full cost of rebuilding your house following a disaster.
Moreover, The Hanover company only offers policies through its agents, which means that you cannot obtain quotations online. Still, this also means that you get personalized care to help you choose the correct coverage.
Coverage and Features
This insurance company offers a number of coverage options for homeowners in Oklahoma. There are three packages to choose from, depending on the level of coverage you require. These plans encompass the following types of protection:
- Dwelling and other structures
- Personal liability
- Loss of use
- Medical payments
- Personal property
Discounts
Additionally, The Hanover offers policyholders access to a number of discounts to help them save on their home insurance premiums. Here are some of the ways you can save with this insurance provider:
- New home discount
- Policy bundling discount
- Discount for being a non-smoker
- Protective device discount
- Discounts for being members of certain organizations
Other Notable Oklahoma Home Insurance Companies
If you haven't found a home insurance company that's the right fit in the list above, here are a few others that might be worth checking out:
- Shelter
- USAA
- Lemonade
- Amica
- Travelers
- Allstate
- American Farmers & Ranchers
The truth is that there are many homeowners' insurance companies in Oklahoma, and because this kind of insurance coverage is so important, given the area's risk factors, it is important to ensure that you are spending enough time conducting research into each company's offerings. Never take anything at face value, and put in the extra time and effort to ensure that you are indeed making a wise choice.
Conclusion
When you live in a state that's prone to natural disasters, it's important to pay attention to your home insurance coverage. Make sure you're spending enough time on research, making a clear list of your requirements, and spending enough time vetting different insurance companies to ensure that you're not left disappointed when disaster strikes and it's time to file an insurance claim for structural damage.
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