Study looks at high cost of homeowners insurance in Oklahoma

Senate Democratic Leader Julia Kirt (D-Oklahoma City) recently led an interim study at the State Capitol looking at the increasing cost of homeowners insurance in Oklahoma. Kirt said she requested the study because of the many calls and emails from constituents struggling with the high cost of insurance - especially folks on fixed-incomes.

"I was surprised by reports last year that said as a share of home prices, insurance rates in parts of Enid are higher than in some neighborhoods in New Orleans, or even fire-prone parts of California. How could that be? I wanted this study to help us understand current law and how to improve the law to make life better and safer for Oklahomans," Kirt said.

Rebekah Williams, an advocate for seniors at the Capitol for more than two decades, offered the perspective of homeowners, particularly older Oklahomans. Williams said she has become more aware of rising costs and was stunned by the hike in her homeowners insurance.

"A few weeks ago, I received my homeowners renewal policy, and noticed an alarming increase in the cost, from $350 dollars per month to almost $500 a month.

My wind and hail deductible went from approximately $900 to close to $10,000," Williams said. "Adding my mortgage, my house insurance and property taxes utilities and a few medical bills, I would have been left with $500 a month for gas or food, or anything else." Williams said her thoughts turned to seniors surviving on Social Security.

"Sure, they may not have a mortgage anymore, but how in the world can they afford to even pay their house insurance with the continuing, escalating cost?" Insurance Commissioner Glen Mulready highlighted the 40 to 50 insurance companies doing business in the state, emphasizing that the Oklahoma Insurance Department's role is to ensure what they deem is a competitive market and that companies are delivering the promised service when they take payments. He said that the commission does not have the authority to regulate the amount of profit an insurance company is making or limit price increases.

"We allow companies to rate properly for the risk - that's the important component when we're talking about how rates are determined," Mulready said.

Bob Hunter said that Oklahoma's insurance market is "not a competitive market" because it is not voluntary to participate and does not respond to the needs of consumers. Hunter is a veteran insurance commissioner, researcher for consumer protection organizations, and a member of the American Academy of Actuaries. Hunter said Oklahomans do not get to make informed choices about property insurance. For example, insurance companies can still use credit scores in deciding Oklahoman's premiums, which is very unpopular with consumers. He also highlighted that competition is not enough to keep rates down without strong state policy to make sure company practices are fair and prioritize the quality of the coverage.

"The weight of work to figure out home insurance in our state falls heavily on the individual. That's very hard, especially with our rates going up quickly," Kirt said. "Property insurance isn't just about the individual - it's about public safety and housing stability. We must make sure state laws ensure safety and fairness for Oklahomans, and I'm committed to continuing to work on that." The full archived livestream of the interim study can be accessed at oksenate.gov by selecting "Live Proceedings" and locating the 2:30 p.m. Oct. 7 Senate Business and Insurance Committee meeting.