Latest news with #StrengthenOklahomaHomesAct
Yahoo
21-05-2025
- Business
- Yahoo
Oklahoma Watch uncovers why homeowners' insurance rates are so high, commissioner responds
OKLAHOMA CITY (KFOR) — Sky-high insurance rates affect nearly every homeowner in Oklahoma. We've all heard the excuse that it's because of the hail, but Oklahoma Watch decided to look beyond that and discovered it may not be the case. 'It turns out that both Texas and Kansas have historically more hail than we do. Yet their insurance rates are lower than ours,' said JC Hallman, reporter for Oklahoma Watch. A report from the National Weather Service from 2020 to 2024 shows Oklahoma had an average of 16.6 days of 2 inch hail. While Texas had more than double at 37.8 days. Kansas had 21.4 days and Nebraska had 22.6 days. Those numbers are what made Hallman start asking what's really driving up Oklahoma's insurance costs. 'It's a quirk in Oklahoma law,' said Hallman. The Oklahoma Insurance Department (OID) will regulate rates if they go too low, but won't step in if they go up, assuming the free market will bring costs down. State Auditor releases initial report on Department of Mental Health 'Oklahomans wind up paying a lot more than they maybe need to and it allows the insurance companies to cover up losses in other states by charging Oklahomans more money,' said Hallman. The OID is led by Glen Mulready. 'Glen Mulready actually has the power based on the law as it is that he could step in and simply decide that we do not have a competitive market and once he says we have a non competitive market, then he could just lower rates,' said Hallman. News 4 asked Mulready if he has considered taking action. 'It all comes down to, do we have a competitive marketplace? And yes, we're getting complaints because premiums are up and people don't like that and I get that, but we have a very competitive marketplace,' said Hallman. Oklahoma Watch reported that there was one instance a commissioner stepped in to lower rates with earthquake insurance. 'Now there were two companies writing earthquake coverage, so it was determined that is not a competitive market,' said Mulready. Records show that the insurance industry was Mulready's top donor in thirteen out of fifteen years. Business owners concerned about NW OKC road construction 'There's zero connection with that because there's nothing that can be done. We don't approve rates, I could see that if we approve rates and somehow I was doing a favor for a certain insurance company, but that doesn't take place because it can't take place,' said Mulready. Mulready also told News 4 he never said it was just hail driving up the cost of insurance. 'Rates are up because of claims and inflation. You know, if a roof costs more to replace today than it did yesterday, your insurance premiums are going to reflect that because that's a direct connection to actual costs,' said Mulready. News 4 asked if he's working with lawmakers to do something about the high prices. 'We are looking for solutions, there's no silver bullet,' said Mulready. Last year the legislature passed the Strengthen Oklahoma Homes Act, which just launched in March. Homeowners can apply for grants to use to fortify their homes, which can lead to lower premiums. While Mulready believes Oklahoma has a competitive market, Hallman encourages you to share your concerns with the OID and push for change. To read JC Hallman's full story, click here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
01-05-2025
- Business
- Yahoo
Homeowners devastated after major insurers hike rates due to weather changes: 'A lot of people are denied coverage'
Oklahoma homeowners have been hit with higher insurance rates as the combination of more severe storms and inflation takes its toll. KOCO 5 News reported that severe storms producing tornadoes and hail have increased in the past few years, leading to more damage and surging home insurance rates. Oklahoma Insurance Commissioner Glen Mulready explained that costs for a new roof rose by 30% over 18 months due to the intense storms. He said that the top 20 home insurance companies "paid out about $105 for every $100 they took in" for hail, wind, and tornado damage by the end of 2023. While the recently passed Strengthen Oklahoma Homes Act — which provides grants to homeowners to reinforce their homes against strong windstorms — is designed to lower insurance costs, KOCO 5 News noted that some insurance companies have already requested premium increases. That means homeowners could face rate increases even if they haven't experienced storm damage. Mulready said rates are increasing by about 10% on average, which isn't a huge jump. However, Bryce Johnson, an attorney from Johnson and Biscone Law Firm, said that insurance providers may deny coverage if they are unwilling to take on the risk. "A lot of people are denied coverage, where the insurance company comes in and tries to say the loss is not related to the recent storm," Johnson said, per KOCO 5 News. "They can't drop a homeowner after the claim is made, but they can certainly drop a homeowner before they have any damage to their home. Unfortunately, insurance companies in Oklahoma have been known to do that." Mulready explained that impact-resistant shingles and tougher roofs could make a difference in terms of storm damage, but they won't protect homeowners from higher insurance rates or a lack of coverage. Soaring insurance rates make it harder for families to afford other necessities, and potential buyers may find it more challenging to buy a home. Not having insurance leaves homeowners vulnerable to storm damage and puts the burden of repairs entirely on their shoulders. Higher insurance rates lead to market instability as homeowners struggle to afford payments in high-risk areas. A major factor behind increasingly volatile insurance rates is the warming climate fueled by the burning of dirty energy sources, which leads to more extreme weather and costlier storm damage. Skyrocketing insurance rates affect homeowners nationwide, including those in weather-battered states such as Florida, Louisiana, and California. Several insurers have dropped policies in Texas and Florida, signaling a worrying trend, as these states are among the hardest hit by hurricanes and floods. Do you think your city has good air quality? Definitely Somewhat Depends on the time of year Not at all Click your choice to see results and speak your mind. In California, lawmakers have issued a mandate requiring insurers to increase coverage in wildfire-prone areas, and Massachusetts legislators are expanding flood insurance coverage to protect homeowners from rising sea levels. Since the insurance crisis is mainly caused by excess planet-warming pollution in the atmosphere, you can help by upgrading to energy-efficient appliances or installing solar panels, which reduce reliance on the electric grid that is powered mostly by dirty fuels. As more people switch to clean energy, the climate will become more stable, which will help make insurance affordable again. You can also check with your state to see if it offers grants to fortify your home against storms. Oklahoma, Alabama, Florida, and Louisiana are several states that provide grants for wind-resistant roofs. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
