Oklahoma home insurance rates hit hard by inflation, company finds

Homeowners in Oklahoma have been affected even more than neighbors in other states by rising insurance premium costs, according to an analysis of data. (Photo by Birgit Loit on Unsplash)

While Americans from coast to coast have had to deal with persistent inflation over the past year that has caused prices of everything from kids’ toys to car tires to rise by at least 8.6%, home insurance policy holders have been hurt even more by rising costs , according to industry analysts at Policygenius.

Oklahomans have been affected more than most, the company said in a report this week.

Between May of 2021 and May of 2022, home insurance costs outpaced inflation in all but one of the states analyzed by Policygenius, with 13 states witnessing average premium increases more than 50% higher than the national inflation rate on goods and services, the company said in a release.

On average, premiums are up 12.1% compared to a year ago. During the 12-month period examined, 90% of homeowners saw annual premiums increase. For those whose premiums went up, the average increase was $134, the company said. Effects in Oklahoma were among the largest, with policyholders seeing premiums go up by $257 on average.

During the 12 months examined, home insurance premiums rose as much as 18.5% in Arkansas, 18.1% in Washington, and 17.5% in Colorado – more than twice the rate of inflation. New York was the only state that recorded premium increases lower than the inflation rate, at 8%. Homeowners there saw average premium hikes of $56.

“Home insurance coverage and premium amounts are based on the cost to rebuild, which takes into account the price of lumber, roofing, contractors, and anything else that goes into building a home. As home construction costs continue to outpace the overall rate of inflation due to supply-chain disruptions, unprecedented labor shortages, and frequent natural disasters, home insurance prices have followed suit,” said Pat Howard, a licensed property and casualty insurance expert at Policygenius. “It’s important for consumers to know there are multiple ways to lower your premium, including regularly re-shopping your home insurance, bundling insurance policies, or installing smart home devices.”

To determine average premium increases, Policygenius examined data on 8,698 active home insurance policies quoted for renewal from May 20, 2021 to May 20, 2022. The percentage change in each state reflected the average difference between the original premium and the insurance carrier’s quoted renewal premium for each policy.

The analysis was limited to the 25 states for which Policygenius had a statistically significant number of policies, the company said.

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