Many residents of the state are wondering why their rates are skyrocketing.
Homeowners insurance policyholders in Oklahoma are now facing premiums that have risen by ten percent, and many are wondering what is behind this significant increase.
In this case, the traditional explanations that would justify a rate hike don’t seem to apply.
As materials and labor remaining about the same due to the current economy, and inflation is low – according to the government – many are struggling to see what could possibly be behind a homeowners insurance rate increase the size of the one that was just experienced.
According to the homeowners insurance section of the official state industry website, there have been changes.
The Oklahoma Insurance Department’s site has stated that if the “declaration page” from 2011 is compared with the “renewal declaration” this year, the justifications for the increases are presented.
To begin, the policyholders with “replacement cost” homeowners insurance coverage will be seeing increases in their premiums because the cost of rebuilding of the homes themselves are on the rise. This means that it must keep up with the inflation of labor, materials and construction costs. Increases can also be caused by a discount loss when a home or an individual became ineligible, or there may have been a surcharge for a claim.
Even when no claims have been filed, it is still possible for insurers to increase their homeowners insurance rates when they file for them, based on the loss experiences that have occurred throughout the state. The “Monthly Filing Activity Reports” are also available on the official website in its Property and Casualty Division.
Covered losses is actually the largest reason behind the rising premiums for homeowners insurance in Oklahoma. Over the five years before 2012, there have been $4.7 billion paid out to policyholders by insurers in the state for wind and thunderstorm related claims, alone. Insurers are already starting to arrange for the payouts of millions more for the claims associated with the wildfires.
The department has said that there are several ways for a homeowners insurance policyholder to decrease their premiums. The easiest ways to lower insurance premiums, that most industry professionals suggest is to review the terms of the coverage frequently, look into higher deductibles and perform regular comparison shopping.