Oklahoma High Risk Homeowners Insurance

Understanding Homeowners Insurance Risks in Oklahoma

Oklahoma, located in the south-central United States, is a state known for its vast plains, rolling hills, and a rich history tied to Native American heritage and the Great Plains settlement. Geographically, it lies in the heart of what is commonly referred to as “Tornado Alley,” an area prone to frequent and severe tornado activity. The state’s climate, characterized by hot summers and unpredictable weather patterns, plays a significant role in shaping the risks that homeowners face. With a landscape varying from flat prairie lands to rugged hills and an economy historically driven by agriculture, oil, and natural gas, Oklahoma presents unique challenges and higher risks for homeowners when it comes to insuring their homes due to the increased claims frequency. These extreme natural risks cause consumers so pay higher prices, get non-renewed, seek out FAIR Plan or Excess and Surplus Lines coverage.

Key Homeowners Insurance Risks in Oklahoma

Home insurance in Oklahoma is influenced by natural disasters and weather-related catastrophe that frequently cause extensive property damage. Below are the primary risks that Oklahoma homeowners need to consider:

1. Tornadoes

Oklahoma ranks among the top states for tornado frequency due to its location in Tornado Alley. Tornadoes can cause catastrophic damage, completely leveling homes and leading to significant insurance claims.

• Example Event: In May 1999, the Bridge Creek-Moore Tornado struck the Oklahoma City metropolitan area with winds exceeding 300 mph. It caused widespread devastation, destroyed thousands of homes, and resulted in billions of dollars in damages. This event remains one of the most destructive tornadoes in U.S. history.

2. Hailstorms

Oklahoma experiences frequent and severe hailstorms, which can cause substantial damage to roofs, windows, and siding. Hail-related claims are a significant factor in the state’s high insurance premiums.

• Example Event: In April 2010, a massive hailstorm hit central Oklahoma, including parts of Oklahoma City and Norman. Hailstones as large as softballs damaged countless homes and vehicles, with claims totaling hundreds of millions of dollars.

3. Severe Thunderstorms and Wind

Severe storms, often accompanied by high winds, are common in Oklahoma. These storms can lead to structural damage, fallen trees, and power outages, often triggering insurance claims for repair and replacement.

• Example Event: In May 2013, a storm system including the Moore EF5 tornado (separate from the 1999 event) devastated parts of Oklahoma, causing billions in damage and highlighting the dual risk of tornadoes and windstorms.

4. Flooding

Although not as frequent as tornadoes, flooding remains a serious risk in Oklahoma, particularly during heavy rains or when rivers and reservoirs overflow. Flash flooding can occur with little warning, leading to extensive water damage.

• Example Event: In May 2019, record rainfall and river flooding across eastern and central Oklahoma caused severe damage to homes and infrastructure. Communities along the Arkansas River were particularly affected, with water submerging entire neighborhoods.

5. Earthquakes

Oklahoma has experienced a surprising uptick in earthquake activity over the past two decades, primarily linked to wastewater injection from oil and gas operations. Earthquakes can cause structural damage to homes, though many standard policies exclude earthquake coverage.

• Example Event: In September 2016, the 5.8 magnitude Pawnee earthquake was the strongest ever recorded in Oklahoma. It caused damage to buildings and prompted discussions about the need for earthquake insurance.

Preparing for High Risks: Lessons from Historical Events

Oklahoma’s history is punctuated by events that demonstrate the importance of understanding and preparing for risks associated with homeownership. By examining these events, homeowners can take steps to protect their properties and ensure adequate coverage:

Tornado Preparedness

With the state’s history of devastating tornadoes, ensuring your home is equipped with a storm shelter or reinforced safe room is crucial. Regularly inspecting and maintaining roofs, windows, and doors can minimize damage.

• Insurance Tip: Verify that your homeowners policy covers wind and tornado damage. Additionally, consider loss-of-use coverage to help with temporary living expenses if your home becomes uninhabitable.

Hail-Resistant Materials

Given the frequency of hailstorms, investing in impact-resistant roofing materials can significantly reduce potential losses.

• Insurance Tip: Some insurers offer discounts for homes equipped with hail-resistant roofs. It’s worth discussing options with your agent.

Flood Insurance

Flooding isn’t typically covered under standard homeowners insurance. Purchasing a separate flood insurance policy through the National Flood Insurance Program (NFIP) or private insurers is essential if you live in a flood-prone area.

• Insurance Tip: Even if you don’t live in a designated floodplain, consider flood insurance as flash flooding can occur almost anywhere.

Earthquake Insurance

Although earthquakes are a relatively recent risk in Oklahoma, the trend suggests they may continue. Retrofitting homes and purchasing earthquake endorsements can offer peace of mind.

• Insurance Tip: Earthquake coverage is typically an add-on to your standard policy. Review your options, especially if you live in areas near active fault lines or oil and gas operations.

Conclusion: Navigating Homeowners Insurance in Oklahoma

Oklahoma is a state with unique beauty and challenges. Its history, from the Land Run of the late 19th century to its position as a hub for energy production, reflects resilience and adaptability. However, its geographical location and weather patterns demand that homeowners take a proactive approach to insuring their properties.

Understanding the risks—whether from tornadoes, hail, flooding, or earthquakes—is essential for making informed decisions about homeowners insurance and mitigation strategies. By learning from historical events, investing in preventative measures, and securing adequate coverage, Oklahomans can protect their homes and ensure financial stability in the face of future challenges.

Whether you’re a long-time resident or new to the state, working closely with an insurance agent to assess your risk and tailor your coverage is the best step toward peace of mind.