Why Is Insurance Going Up So High in Oklahoma??

Why are insurance rates going up so much In Oklahoma?

Everyone is asking this question, and I have the answer for you. Insurance companies are designed to make money. When we have large weather catastrophes that cause a significant number of claims, that means insurance companies pay out a lot of money, and they have to recoup that so they raise rates or offset their out-of-pocket for a future claim with higher deductibles. Many people ask, “but I didn’t file a claim, why is my rate higher?”, and here is the answer; Insurance prices are determined by actuaries and these are people or compiled data, that do a lot of calculating day in and day out based on specific ZIP Codes, or certain areas of where a catastrophe is most likely to occur or has already occurred, and a future threat of potential claims that could be paid out based on all covered losses but more specifically what affects us in Oklahoma on, hail storms or windstorm/tornado, ice damage, fire damage, just to name a few,  that have already occurred even if the claims haven’t been reported yet. Make sure you turn your claims in as soon as you know you have damage. This is your due diligence as the policy holder.

Insurance companies do try to offset their out-of-pocket expense on Claims by allowing an increase, or requiring an increase of a deductible, such as wind or hail.

I have been in this industry for 23 years and counting, and I have seen large fluctuations in the market. I have seen hard markets in soft markets I have seen carriers come into Oklahoma and carriers pull out of Oklahoma. This is the nature of Oklahoma weather in the insurance form. It’s not fun for any of us to experience and you should never be afraid to use your insurance when it is necessary. I would encourage all of my clients and all people that use insurance as protection to do your due diligence and confirm that you have not had a weather-related loss to your home or roof. You do not have to turn a claim in. You can simply call a contractor to determine whether it is in your best interest to turn a claim in prior to reporting it to your insurance company if you are unsure. At the time that you are able to confirm if damage exist or not then you can report the claim to the carrier, or your agent. This saves time and energy for you with adjusters, and it also allows your contractor to be selected to work with your adjuster once the claim is filed. I am finding that new roof ages of paid out claims are not affecting rates being surcharged, but rather helping keep replacement cost on roofs, keeping lower, deductibles, and lowering the premiums overall. I feel as though many people are nervous to turn Claims and because it could increase their rates, and it could potentially increase the rate depending on the type of loss, but what I have seen consecutively for the last 18 months is if it is a wind or hail claim it seems to be quite the opposite with a 95% or more of the carriers in our state. I hope you find this helpful, and I hope you will spread the word about our agency and what we do to serve you and even others that are not our clients to make sure you are getting the best coverage for the best price and always staying safe and staying insured!

Thankful to be Your Trusted Choice Agent,

Darbi Sue Tomlinson- French