Oklahoma is known for natural disasters, like tornados and even flooding and earthquakes. Unfortunately, for homeowners, those disasters have led to increased insurance costs, in recent years.
There’s no denying home insurance rates in Oklahoma are high. In fact, the average home owner pays $6,210 per year, that’s 194% higher than the national average, which is $2,110 per year, according to NerdWallet.
In recent months, our team at Seda Real Estate Group has noticed that buyers are checking rates more closely when deciding whether or not to buy a home.
Those rates, combined with current mortgage rates have many home buyers re-evaluating their budget.
So why are rates so much higher in Oklahoma?
The easy answer is the weather. Oklahoma is best known for tornadoes, but other large weather related events, like flooding and wildfires have led to rate increases each year. Earthquakes are also a factor.
The Oklahoma Insurance Department offers advice on their website to Oklahomans who are curious about how to get the best rates — suggesting things like shopping around to different insurance companies or increasing your deductible.
The insurance department does suggest that those buying or already owning a home in Oklahoma consider adding additional coverage to cover things like earthquakes and sewer/water backups, which are not typically covered by a standard plan.
While it’s important to understand these factors when buying a home, they don’t have to be deal breakers for your overall goal. They may rule out a particular property or require some budget adjustments — but they don’t mean you can’t buy a home.
The Oklahoma Insurance Department also has an article with suggestions on how you may be able to lower your home insurance rates. You can find that here.
If you have questions or are interested in buying or selling a home we would love to help. Give us a call at 405-400-9973.