OKLAHOMA CITY (KFOR) – House lawmakers invited insurance experts to speak at the State Capitol on Tuesday regarding the skyrocketing home insurance rates across the state.
Rep. Andy Fugate (D-Del City) said he has heard from families in his district who are struggling because of the rising costs of homeownership.
“It’s pricing Oklahomans out of their homes,” said Fugate. “Not just of homeowner insurance, but home ownership, rising cost of utilities, the rising cost of payments on your homes, and insurance on your homes. All of that adds up.”
Oklahoma Insurance Commissioner Glen Mulready spoke before lawmakers.
“I want to assure you it’s not just an Oklahoma problem. It’s a national problem,” said Mulready.
The Commissioner pointed to the area’s high-risk weather, such as tornadoes and wildfires, as the source of growing rates.
“There’s this false premise that we are playing for claims that are happening off the coast,” said Mulready.
He told lawmakers that the 100 insurance companies in the state make Oklahoma a competitive market, and they have been receiving costly claims.
“On average, of those insurance companies, there are zero profits being made,” said Mulready.
Over a six-year span, home insurance rates in the United States have climbed by more than 40 percent. A June report from Lending Tree showed that the average yearly cost for home insurance in the U.S. was $2,801. In Oklahoma, the average yearly rate was more than double at $6,133.
Mulready said one in eight Oklahomans no longer had home insurance because they simply could not afford it.
“Our horrendous homeowner insurance rates ought to alarm everybody in the state of Oklahoma,” said Fugate.
The Senate will hold a similar meeting next week. The talks could translate into proposed legislation by lawmakers next session.
