Home Insurance Rates Are Up in Oklahoma, And the Excuses Are Getting Old

We’re being told - once again - that Oklahoma homeowners' insurance rates are going up because of the weather.

You know, hailstorms, high winds, the occasional twister. The same things we’ve been dealing with for decades. Nothing new there.

But here is the part they don’t want you to question...

Other states with just as much, or even more severe weather, somehow have lower premiums. States like Texas, Kansas, Missouri, and The Midwest. They've had more tornadoes and hail storms than Oklahoma, yet the Sooner State remains the fourth most expensive state to insure a home in behind Florida, Louisiana, and Nebraska.

The 2024 average annual premium for homeowners.

• Oklahoma - $4027
• Texas - $3721
• Colorado - $3708
• Kansas - $3450
• Missouri - $2610
• Arkansas - $1764
• New Mexico - $1655
• National US Average - $2377

So what makes Oklahoma so special?

Spoiler: nothing, except that they can raise rates here and keep getting away with it.

Insurance companies have gotten really comfortable using "the weather" as a catch-all excuse.

Every time there's a thunderstorm, it’s like they hear a cash register ding in the distance. But behind all the finger-pointing at Mother Nature is a much less exciting truth.

Profits are up, executive bonuses are up, and Oklahomans are being told to sit down and write a bigger check every year without much explanation.

It's not about risk, it's about return.

And no, this isn't about denying that we get bad weather. We do. But so does half the country.

Tornadoes might be a branding issue for us, but let’s not pretend Oklahoma has some uniquely catastrophic climate other states don't share. The storms haven't suddenly gotten worse, the justification from insurance companies has just gotten lazier.

Is insurance going up everywhere? Yes, some 40% over the last six years everywhere else. Oklahoma is up a staggering 50.8% in the same time period. CEO pay at the top companies has risen 9-10% year over year too, which is why you won't find anyone in Oklahoma crying pity for CEO's.

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Fun Fact: The homeowner insurance industry reached new records in the last few years, $88 billion in profits in 2023.

So next time you get your renewal notice and it’s mysteriously gone up another $400, ask yourself, is it really the hail? Or is it just business as usual?

You can get it back though. Since insurance groups are overwhelmingly publicly traded, you could feasibly invest enough in those companies to pay you back your premiums each year... but it'll take quite a bit of cash to do so upfront.

You might read that and think it's a snake-eating-itself scenario, but no one ever made money by saving it. Money makes money in the market. Good luck.