Oklahoma Lawmakers Propose Ways to Reduce “Extreme” Homeowners Insurance Rates

Homeowners in Oklahoma pay some of the highest insurance premiums in the country.

According to Bankrate, the average homeowners insurance premium in Oklahoma is $4,695 per year ($391 per month).

Only three states have higher average premiums than Oklahoma. The top five most expensive states for homeowners insurance include:

1. Nebraska: $6,587
2. Louisiana: $6,274
3. Florida: $5,838
4. Oklahoma: $4,695
5. Kansas: $4,444

High prices make it harder for Oklahomans to afford a home. That’s why lawmakers are proposing different solutions.

Homeowners Insurance Jumps 67% Year Over Year for Oklahoma Homeowners

Chloe Bennett-Steel, writing for The Oklahoman, recently described the state’s rising homeowners insurance premiums as “extreme.”

In her article, Bennett-Steel cites reports from multiple homeowners who are struggling to pay premiums that continue to rise each year.

For example, one Sulphur, Oklahoma homeowner has lived in her house for 30 years, and was reportedly “shocked” by the latest increase. Her homeowners insurance company had gradually increased premiums in recent years, but the latest annual rise was particularly shocking:

Williams’ new premium would have cost her more than $500 a month, up from around $300 in her last renewal. She said she hadn’t filed a claim in at least a decade and made no major renovations to her home.

That’s a jump of 67% year over year.

Why Oklahomans Pay Higher Prices

Homeowners insurance premiums are rising in virtually every state because of a confluence of factors.

Some rises are attributed to severe weather. According to a 2025 report from Harvard Business School, damaging weather events have become more frequent. That means more home repairs and more costs for insurers, which then get passed onto homeowners – even homeowners who have never made a storm-related claim.

Others blame rising inflation, material, and labor costs, which increase the cost of replacing or repairing a home (and everything inside that home) after a claim.

However, Oklahoma’s sky-high insurance premiums can’t be blamed solely on severe weather or inflation.

As Bennett-Steel suggests, some blame a “lack of oversight of the [Oklahoma] insurance industry as the likely reason for the state’s expensive premiums”

According to state Insurance Commissioner Glen Mulready, Oklahoma is one of 11 states operating with a use-and-file system, allowing companies to begin using new rates immediately. Several other states have file-and-use processes, meaning insurers notify regulators before sending out new premiums.

Many states restrict insurers from raising rates excessively year over year. California, for example, requires insurers to file a rate change request through the Department of Insurance before passing higher premiums onto homeowners.

Oklahoma Department of Insurance Commissioner Glen Mulready, however, disagrees that lax regulation leads to higher insurance premiums, blaming inflation and rising home values instead, according to a statement provided to Bennett-Steel and The Oklahoman.

I don’t like the rates going up any more than they are, but it’s about weather, it’s about claims.

How Oklahoma Could Lower Rates

Oklahoma lawmakers are proposing different ways to lower high insurance premiums.

Some of the proposed changes include:

• More Oversight: Some suggest more insurance industry oversight is needed – say, to prevent insurers from arbitrarily raising rates.
• Limit Profits for Insurance Companies: As Bennett-Steel reports, one state lawmaker proposed filing a measure to limit profits for insurance companies. That lawmaker argues that the insurance industry is not actually a free market because Oklahomans are required to carry insurance on things like mortgages. These mandates increase profits for insurers and worsen affordability for homeowners.
• Switching from Use-and-File to File-and-Use: Switching to a file-and-use system, where insurers file rate change requests with the state before passing them to homeowners, could protect homeowners from arbitrarily paying higher premiums.
• Removing or Restricting the Use of Credit Scores When Calculating Premiums: Most states, including Oklahoma, allow insurers to use credit scores to calculate premiums. Homeowners with a lower credit score pay much higher rates for insurance than homeowners with a higher credit score, all else being equal. One Oklahoma lawmaker wants to eliminate or restrict this system because it “feels like we’re piling on to people who already might be having financial challenges.”
• Shortening Claim History Lookback Period: Insurers use each homeowner’s history of claims to set rates. A single house fire from years ago could double premiums today – even if the fire wasn’t your fault. One proposed bill would shorten the length of time insurers can look back at your claims history.
• 60 Day Cancellation Notice Instead of 30 Days: Under the current system, insurers must notify homeowners of insurance policy cancellation within 30 days of the cancellation date. Oklahoma could increase that limit to 60 days.

Stronger Roofs Could Reduce Premiums

One of the most promising ways to reduce insurance premiums is to strengthen roofs.

Earlier in 2025, Oklahoma introduced the Strengthen Oklahoma Homes (SOH) initiative, which gives homeowners up to $10,000 in grant funding to replace their roof to a stronger standard.

Oklahomans are no strangers to wind, and wind causes millions of dollars’ worth of insurance claims each year across the state. Studies show strengthening roofs to a specific standard – like the FORTIFIED standard – can significantly reduce the risk of windstorm damage.

As Oklahoma Department of Insurance Commissioner Mulready says in a statement to Bennett-Steel and The Oklahoman:

We can’t control the weather, we need to build more resiliently and mitigate those claims if we want to impact that [high insurance premium] number.

Ultimately, homeowners nationwide are facing higher insurance premiums, and Oklahoma is no exception.

Struggling with high insurance premiums or a recent claim? ClaimsMate has insurance claims experts standing by for a free consultation. Tell us about your claim problem, and we’ll explain how we can solve it.