EDITORIAL: False info not fair to Oklahomans

Dec. 29--It was disheartening to read this past week allegations that one of the top home insurance companies in Oklahoma submitted false and confidential information about claims filed by homeowners who filed claims related to tornadoes that swept through the state in 2013.

If true, the scheme not only harmed the eight plaintiffs, who say it is practically impossible for them to secure new homeowners insurance policies, it likely contributed to Oklahoma's high premium rates. The Insurance Information Institute ranks Oklahoma as the fourth most expensive state in terms of homeowners insurance.

The annual average homeowners insurance premium in Oklahoma, according to III data, was $1,875 in 2016, the most recent year available. That compares to the national average of $1,192 a year.

Much of the higher cost can be attributed to Oklahoma's extreme weather events -- tornadoes, hail and earthquakes -- that produce a greater number of claims. But plaintiffs in a lawsuit filed in Cleveland County allege Farmers Insurance reported to a national database it paid claims nearly 500 times more in some cases than what was actually paid.

The plaintiffs allege the inflated figures reported to the database defamed them and made them appear to be "high risk" clients, limiting their prospects of getting new policies at reasonable rates. It also would have the effect of inflating losses reported in the state, placing all homeowners in higher risk categories and in jeopardy of increased premiums in the future.

Insurance is intended to provide a sense of security if and when a disaster strikes. That sense of security can quickly fade if homeowners have to be suspicious of their insurer.

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