Oklahoma Homeowner’s Insurance Among Nation’s Highest, but Not Because of Risk
You’re probably paying more for your homeowner’s policy than Julia Roberts, Leonardo DiCaprio or Lady Gaga.
Lady Gaga paid $22.5 million for her Malibu mansion a decade ago, and while your Enid bungalow might not challenge that price tag on Zillow, the rate you’re paying to insure it — the cost of the insurance compared to the value of the property — is substantially higher.
A white paper published in June by the National Bureau of Economic Research looked at soaring home insurance prices, which some attribute to increased weather risks connected to climate change. The typical U.S. household paid $2,530 in home insurance premiums last year, 33% more than in 2020. Inflation pushed prices up by 19% during that time.
According to the research, the rub is in the regulations. Property on the Texas Gulf Coast and North Carolina’s Outer Banks is at much greater risk than a home in Enid, but those states, like California, heavily regulate the insurance industry. Insurers increase rates in states with a friendlier regulatory environment to mitigate the risk.
According to Oklahoma Insurance Commission data, the annual premium for a $250,000 frame house in Oklahoma City ranges from $2,385 (CSAA) to $9,121 (Farmers). In Santa Monica, California, a coastal town just down the road from Lady Gaga’s pad, the annual rate to cover a $250,000 home (if you could find one) ranges from $262 (American National) to $2,511 (Privilege Underwriters Exchange), according to the California Department of Insurance.
Using the median rate, Oklahoma City homeowners pay $23.06 per $1,000 of home value, while people in Santa Monica pay just $5.55.
Oklahoma gets more hail damage, but in Galveston, Texas, prone to tropical storms, hurricanes, and flooding, homeowners pay about $8 per $1,000 of value, while their counterparts in Grant County, which had only two significant tornadoes since 1965, pay $39 per $1,000 of value.
“Much of the difference in insurance premiums seems to stem from actions by state officials, who have the authority to approve rate increases,” said a recent New York Times story about the disparities. “Some states use that power to keep rates low, while others hardly use it at all. Homeowners in states with more controls, like California, tend to pay less than those in states with a hands-off approach, like Oklahoma.”
A more in-depth analysis by the Times reported that Glen Mulready, Oklahoma’s elected insurance commissioner, has never exercised his power to deny a rate increase requested by an insurance company for home insurance. He said he believed that competition, not regulation, was the best way to hold down prices, the Times reported.
More worth reading:
Skiatook Teacher Fired Over Religious Assignments
At its Monday night meeting, Skiatook Public Schools’ Board of Education formally approved the termination of a non-certified instructor who assigned his history students homework about God, Satan and the definition of Christianity. [Tulsa World]
Embattled Judge Resigns
Garfield County Associate District Judge Brian Lovell submitted his resignation, citing a recent diagnosis of dementia. Lovell faces firearms charges in Oklahoma and Texas, as well as an attempt by the Oklahoma Court of the Judiciary, Trial Division, to remove him from office. [Enid News & Eagle]
Proposal Could Send Campaign Money to Caregivers
The Oklahoma Ethics Commission has proposed a new policy to allow political candidates and elected officials to spend campaign funds on child care or other caregiving expenses. The commission released a draft opinion Friday in response to a request from Sen. Jessica Garvin, R-Duncan, who has said the policy could reduce barriers to elected office for parents of young children. [Oklahoma Voice]
“Never slap a man who’s chewing tobacco. Never kick a cow chip on a hot day. Never miss a good chance to shut up.”
— Will Rogers
Ciao for now,
Ted Streuli
Executive Director, Oklahoma Watch
tstreuli@oklahomawatch.org
