The 5 Best Oklahoma Homeowners Insurance Companies
Oklahoma’s annual premiums for homeowners insurance are on the higher side — on average $1,772 per year for an HO-3 policy, compared to the nationwide average of $1,132. That said, how much you’ll pay can vary a lot depending on your home’s size, your assets, and your address. Use our tool to find your best rates:
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While Oklahoma has a low cost of living, the number of natural threats in the area drives insurance rates to pretty tremendous levels. Between 2007 and 2013, insurance rates in Oklahoma nearly doubled, and the average cost of insurance throughout the state is $1,772. To put that into perspective, the only states with higher rates are Florida, Louisiana, Texas, and Mississippi, which are all more well-known for natural disasters. But Oklahoma is prone to extreme bouts of severe weather — the state sees an average of 55.8 tornadic events per year — so despite the low cost of living, it can be expensive to get great coverage.
We don’t mean to intimidate you! Prices and rates vary a lot depending on all sorts of factors, from the size of your home to your ZIP code. Your best bet is to shop around for the best quote possible. Start with the quote tool below.
How We Found the Best Homeowners Insurance in Oklahoma
To evaluate the various providers, we used a methodology that resembles what we used to determine the best nationwide providers. We looked at the top five insurance providers in the state based on market share and evaluated their coverage options and discounts — and we sought to obtain a quote from all we could. We also looked at each provider’s financial strength and stability ratings, and customer satisfaction from Consumer Reports and J.D. Power and Associates.
Oklahoma Homeowners Insurance Reviews
State Farm is a reliable, well-rounded insurance provider with 28 percent of the market share in Oklahoma. Although State Farm has limited discounts, the options it offers are solid: Its multi-policy discount can save as much as 30 percent when bundled with auto insurance, and its Home Alert Protection provides a discount for customers with security systems. State Farm also offers discounts for users with impact-resistant roofing; this is a useful addition for any home in Oklahoma, especially due to the frequency of hail.
State Farm doesn’t fare as well as the four other providers we looked at in terms of overall satisfaction, but stood out for its financial stability. State Farm and USAA are the only two companies on this list to score an A++ rating from A.M. Best. This means State Farm is able to honor its obligations to consumers, even in a time when hundreds of claims may be filed; for instance, after a string of severe storms throughout the entire state. State Farm is also the only company to provide earthquake coverage in its base policy. Its resource center provides information on how to respond to severe weather, as well as a catastrophe contact form with step-by-step instructions on what to do after one strikes.
Farmers Insurance stands out because it offers three coverage options rather than a single one. You can choose among Standard, Enhanced, and Premier coverage (we were quoted at $2,276, $3,495, and $4,407 respectively). These coverage options are defined by their coverage limits and the deductible. The Standard option has a lower premium, but higher deductible and low coverage limits, while the Enhanced option has a lower deductible, but a higher premium and full coverage of your home and its contents. Despite these higher costs, Farmers offers multiple discounts including an Affinity program (providing discounts to members), a non-smoker discount, and a discount for homes with UL-approved roofing.
Farmers earned average scores in terms of customer satisfaction and claims. However, the online application process was one of the easiest we encountered. The first page of the form takes in all information about the home, while the second page allows you to see what discounts you may qualify for. Keep in mind that online quotes are just estimates; speaking with an agent will allow you to obtain a more accurate idea of what your premiums will be, and may also reveal discounts you weren’t aware of.
Liberty Mutual falls just behind State Farm in terms of customer satisfaction, but comes up noticeably short in financial strength. It’s the only company on the list to score an A- rating from Standard & Poor. (Keep in mind though, A- is still considered “investment-grade.”) While the rating isn’t a deal breaker, it is worth keeping an eye on to see the direction the company takes in the future.
Liberty Mutual has the second-highest premium of any of the quotes we obtained at $267 per month, but this is offset by the discounts it offers. Liberty Mutual has several unique discounts including its “Insured to Value” discount: When you obtain full-replacement coverage, you may be able to reduce your premium. In addition, your first claim won’t increase your rates because of its “Loss Forgiveness” program. Liberty Mutual also offers an emergency home repair program, something that sets it apart from the other entries on this list; if your home is damaged in a way that may lead to more damage, Liberty Mutual will dispatch a repairman at any time of day or night to address the problem.
USAA provides top-notch customer service. In addition to customer service being one of the main points of praise in multiple reviews, USAA scored a higher Consumer Reports reader score than any other on this list with a 92 — the only company at all to score higher than 90. It’s also the only company to score “Excellent” for timely payments. USAA limits membership to members of the military and their families, so we were unable to obtain a quote for monthly premiums. However, because the company is targeted to a specific audience, each member receives more personalized care than they may receive from a larger company.
Those eligible for coverage through USAA can reduce their premiums with a variety of discounts. The home age discount allows homeowners to reduce their premiums if their home is new, while the home security discount provides savings for a home security system. USAA also has a multi policy discount, citing an average of $227 annually for combining home and auto insurance. USAA’s resource center has dozens of disaster-preparedness articles to help you understand the threat of severe weather and what to do should it strike.
When it comes to home insurance discounts, no company has more options than Allstate. The multi-policy discount can save up to 30 percent, while the claims-free discount can save an additional 20 percent. There are nearly a dozen other discounts, including the Easy Pay Plan — by setting up automatic draft for your premiums, you can save 5 percent each month. Allstate also stood apart from the competition because of its affordable rates. Like Farmers, Allstate provided three separate quotes, but even the Premium option was more affordable than the standard offerings from other companies.
Allstate responds to severe weather in a way no other company on this list does. After a catastrophe strikes, Allstate has a fleet of Mobile Response Centers that can be set up at the site of a disaster to provide support and help customers file claims. Allstate recently revamped its online quote form and made it significantly easier to obtain a quote. In addition, its Digital Locker is one of the best resources we’ve seen: It allows customers to create a digital inventory of the contents of their home.
Did You Know?
Bad news: Oklahoma homeowners insurance rates could be getting even higher.
According to a report from 9 News, “Oklahoma’s Own” news provider, rates have more than doubled in the past six years. Oklahoma is subject to nearly every extreme weather event except hurricanes, and as a result of increasing tornadic activity in recent years, rates are rising higher than they’ve ever been.
From 2008 to 2013, weather-related catastrophes accounted for 66 percent of homeowner’s insurance claims in Oklahoma. In comparison, over the past 11 years, catastrophes accounted for 35 percent of all claims. An article released by Forbes in 2012 states that weather-related claims have been on an upward trend for the past 30 years. Insurance rates are higher for homes located in high-risk areas; while all parts of Oklahoma are at risk for severe weather, the central area of the state is most at-risk.
The insurance commissioner of Oklahoma has pushed for insurance companies to offer discounts for storm-fortified housing, but the additional cost of fortification is an inhibition for many homeowners. That said, if you’re looking for potential savings on your premium (as well as a more secure home), storm-fortified housing may be the way to go. Both State Farm and Farmers provide discounts for homes with impact-resistant roofing.
Earthquakes? In Oklahoma? You bet.
One of the most surprising emerging markets for homeowners insurance in Oklahoma has been earthquake insurance. Due to oil workers’ injection of wastewater, there have been an increasing number of quakes. At the time of writing, the most recent quake was a magnitude 3.9 on August 9, 2016. However, because there is a distinct lack of competition in the earthquake insurance market, rates have risen by as much as 300 percent in certain areas. State Farm is the only company we evaluated that includes earthquake coverage as part of its base policy; for other companies, earthquake policies must be purchased separately.
Beware of water.
Lately, flooding has increased in Oklahoma City. The city is located on a floodplain; as a result, heavy rainfall during spring and summer months can cause creeks and streams to overflow. Home insurance policies do not include coverage for flooding, but the National Flood Insurance Program (NFIP) provides educational resources and options for flood insurance. Even if you do not live in a high-risk area for floods, you’re encouraged to consider purchasing flood insurance. Something as simple as a clogged drain can cause your home to flood; an undetected burst pipe in the winter can result in thousands of dollars in damage to a home.
The Bottom Line
Regardless of whether you live in the heart of Oklahoma City or the outskirts of Tulsa, as a homeowner in Oklahoma, you’ve got to be prepared for inclement weather. Finding the best homeowners insurance starts with getting quotes from multiple providers. Enter your ZIP code in the tool below to start shopping around and compare your coverage options.
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