Oklahoma lawmakers will examine the factors driving the state’s high homeowners insurance premiums during an interim study later this year.
Oklahoma Representatives Stacy Jo Adams and Chris Sneed said the study will bring together insurance professionals, contractors, builders, real estate professionals, adjusters, consumer advocates and homeowners to better understand why Oklahoma consistently ranks among the states with the highest homeowners insurance costs.
The review will examine how rising property values, construction material prices, labor costs and severe weather have affected insurance premiums. Lawmakers also plan to compare the cost of replacing roofs through insurance claims with the cost of installing roofs during new home construction.
Adams, who works as an insurance agent, said she regularly hears from customers and constituents struggling with rising premiums.
“This issue hits close to home for me in more than one way,” Adams said. “I see customers opening their renewal notices and wondering why their homeowner’s insurance premiums have increased again. I also hear from constituents who simply want to know why it costs so much to protect the homes they’ve worked so hard to build. I want answers too.”
Sneed said lawmakers also intend to examine less obvious cost drivers.
“There has to be additional factors driving these prices, and we intend to cover all our bases,” he said.
The study also will explore the impact of litigation, reinsurance costs, building codes, fraud and state regulations on insurance premiums.
Adams said lawmakers are approaching the study without a predetermined outcome and hope to identify practical solutions that could help reduce costs for Oklahoma homeowners.
The study will be conducted during the Legislature’s interim study period, which runs through Oct. 30. A meeting date has not yet been announced.
