September 2, 2025
Oklahoma homeowners face the nation’s highest insurance costs, nearly triple the U.S. average, driven by tornadoes, hail, and earthquakes. Learn how to manage coverage.
Oklahoma's homeowners insurance market ranks among the most expensive in the nation, presenting unique challenges for property owners. Understanding the factors driving costs and available options becomes crucial for homeowners in the Sooner State.
Oklahoma holds the distinction of having the highest average homeowners insurance premiums in the United States, with annual costs ranging from $5,858 to $6,210 depending on the analysis. This represents a staggering 194% above the national average of $2,110, making Oklahoma homeowners insurance nearly three times more expensive than the typical American policy.
The difference is stark when examining specific coverage levels: for $250,000 in dwelling coverage with $125,000 in personal property coverage and $200,000 liability coverage, Oklahoma residents pay an average of $5,917 annually. According to real estate professionals, some Oklahoma homeowners have experienced rate increases approaching 100% over the past year.
Oklahoma's position in "Tornado Alley" creates a catastrophic risk environment that drives insurance costs skyward. The state experienced its worst tornado year on record in 2024, with 152 confirmed tornadoes surpassing the previous record of 149 set in 2019. By late May 2024, Oklahoma had already recorded 95 tornadoes, far exceeding the typical annual average of 58 for an entire year.
The severity of recent tornado activity has been particularly devastating. 2024 marked the first year since 2013 that Oklahoma experienced more than one EF4 tornado, with deadly strikes in Marietta and Barnsdall. April 2024 alone saw 55 tornadoes across Oklahoma, the most recorded for that month since record-keeping began.
Oklahoma had 314 major hail events and 48 tornadoes in 2023 according to the National Oceanic and Atmospheric Administration's Storm Prediction Center. This combination of wind and hail damage creates billions in claims annually, with insurers passing these costs directly to policyholders through higher premiums.
Oklahoma's increased seismic activity adds another layer of complexity. Since January 2009, earthquake activity increased about 40 times higher than in the previous 30 years. Standard homeowner policies do not cover earthquake damage, forcing homeowners to purchase additional coverage at typically $50 to $300 per year for earthquake insurance.
Not all Oklahoma communities face identical insurance costs. Premiums range from $4,919 in Tulsa to $6,812 in Oklahoma City, with Broken Arrow falling in between at $5,035. Oklahoma City homeowners pay an average of $7,085 annually, while Tulsa residents pay $5,250 per year.
Oklahoma County, home to Oklahoma City and Edmond, experiences the most tornadoes of any county in Oklahoma, with 153 twisters from 1950 to 2022. This concentration of severe weather activity directly correlates with higher insurance costs in the metro areas.
Credit scoring creates dramatic premium variations in Oklahoma, with homeowners having poor credit paying an average of $17,719 annually compared to $3,941 for those with excellent credit. The difference between poor and good credit can result in premium variations of up to 63%, representing one of the largest determinants of individual policy costs.
Oklahoma policies frequently feature percentage-based wind and hail deductibles rather than fixed amounts. Windstorm deductibles typically range between 1% and 5% of the policy's dwelling coverage limit. For a $200,000 home, this could mean deductibles ranging from $2,000 to $10,000 for wind-related damage.
Extended Replacement Cost Coverage: Given Oklahoma's frequent rebuilding demands following storms, this coverage becomes crucial when construction costs spike due to high demand.
Water Backup and Sump Overflow: Heavy rainfall events accompanying severe storms make this coverage increasingly important.
Ordinance or Law Coverage: Older homes may require updates to meet current building codes when rebuilt after storm damage.
Equipment Breakdown and Service Line Coverage: These newer endorsements protect against infrastructure failures that can occur during severe weather events.
Earthquake insurance deductibles are percentage-based, commonly 5 to 10 percent of the insured property's value. For a $100,000 home, this would require a deductible of $5,000 to $10,000. Homeowners in high-risk areas like Cushing and Stillwater should particularly consider this coverage.
Oklahoma operates without a FAIR Plan, meaning high-risk homes may need to seek coverage through excess or surplus lines markets. The Oklahoma Insurance Department provides rate comparison tools and consumer resources, including complaint filing mechanisms for policyholders experiencing issues with their insurers.
Credit scoring is permitted for both underwriting and rating purposes in Oklahoma, contributing to the wide premium variations between consumers. The state maintains strict cancellation rules after the first 60 days of policy issuance, providing some consumer protection.
Understanding Oklahoma's position relative to neighboring states highlights the severity of the insurance crisis:
*Estimated based on available data
Analysis shows that Oklahomans living along state borders pay premiums 70% higher compared to residents living just across state lines in Arkansas, Kansas, and Texas, despite comparable exposure risks to natural disasters. This disparity suggests factors beyond weather risk contribute to Oklahoma's premium inflation.
Experts project Oklahoma insurance premiums will increase 4 to 6% in 2025, making annual shopping for coverage increasingly important. Comparing quotes from multiple insurers becomes essential, as pricing can vary by up to 157% above or 45% below the state average depending on the provider.
Installing storm-resistant features can provide premium discounts with some insurers. Storm shelters, impact-resistant roofing, and reinforced garage doors rated for high wind speeds may qualify for reductions. Some insurers may offer discounts for built-in tornado shelters, though availability and qualification vary by provider.
Given Oklahoma's unique risk profile and the complexity of coverage decisions, many homeowners benefit from professional guidance when navigating their insurance options. Whether dealing with tornado damage claims, earthquake coverage decisions, or managing rising premiums, having expert support becomes invaluable.
For mortgage servicers and lenders working with Oklahoma homeowners, partnering with Covered can significantly improve the customer experience while reducing operational costs. Rather than leaving customers to navigate Oklahoma's challenging insurance market alone, servicers can offer warm transfers to licensed insurance agents who specialize in Oklahoma risks and coverage needs. This approach not only helps customers secure appropriate coverage at competitive rates but also reduces call center volume by connecting homeowners with experts who can address their insurance needs comprehensively, ultimately supporting customer retention and satisfaction.
Rural Oklahoma homes often utilize alternative heating sources like wood-burning stoves or propane systems. These properties require special underwriting consideration and may face coverage restrictions or additional requirements from certain insurers.
Mobile and manufactured homes are common in certain areas of Oklahoma and may require specialized insurance policies rather than standard homeowners coverage. These structures face particular vulnerability to wind damage and may have limited insurer options.
Homes built before modern building codes may face higher premiums or require updates to meet current standards when rebuilt. Understanding these requirements helps homeowners plan for potential reconstruction costs following storm damage.
Oklahoma's average home insurance premium reached $6,133 in recent analysis, with the state experiencing significant rate increases. The continued severe weather patterns and construction cost inflation suggest ongoing upward pressure on premiums.
Climate change implications point toward potentially increased severe weather frequency and intensity, which could drive further premium increases. The insurance industry's response to consecutive years of catastrophic losses in Oklahoma may include additional underwriting restrictions or further premium adjustments.
Oklahoma's homeowners insurance market represents one of the most challenging in the nation, driven by an exceptional combination of tornado, hail, and earthquake risks. With premiums nearly three times the national average and continuing upward pressure from severe weather events, Oklahoma homeowners must approach insurance decisions strategically.
Understanding the state's unique risk factors, coverage requirements, and market dynamics enables property owners to make informed decisions about their insurance needs. While the high costs create financial challenges, adequate coverage remains essential protection for what is typically a family's largest asset.
Success in Oklahoma's insurance market requires active management: annual shopping for competitive rates, understanding specialized coverage needs, and working with knowledgeable professionals who understand the state's unique risk environment. As severe weather patterns continue to evolve, staying informed about coverage options and market trends becomes increasingly crucial for protecting both property and financial stability.
This article provides general information about Oklahoma’s homeowners insurance market based on available industry data as of 2025. Individual circumstances vary significantly, and premium quotes, coverage options, and policy terms differ by insurance company. Consumers should consult with licensed insurance professionals for specific coverage recommendations and current pricing. Information presented should not be considered as guaranteed outcomes or personalized insurance advice.
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*Savings claim based upon averaging actual anonymized savings data for dwelling-only insurance rates paid (from July 2023 - June 2024) by customers of two of Covered’s largest mortgage industry partners across twenty-seven (27) US states. Bundles and non-dwelling insurance coverages were excluded.
† Net Promoter Score (“NPS”)® calculation averages post-purchase customer satisfaction surveys from 9/24/2024 - 2/28/2025. NPS® is a market research metric measuring customer satisfaction with a scoring calculation that incorporates both detractor and promoter customer feedback.
Quotes are presented solely for your convenience. Savings may vary. Rates are subject to change based upon the specific coverage you select and other factors that apply to your situation. CA License #0M81402, doing business as Cubbard Insurance Solutions in California.
