Oklahoma Lawmakers Propose Reforms to Address High Homeowners Insurance Rates

Oklahoma homeowners are experiencing some of the highest insurance rates in the nation, with average annual premiums ranging from $4,100 to over $6,200, more than double the national average. This situation is exacerbated by the dominance of four major insurers in the market, limiting competitive pricing and transparency in claims handling. Oklahoma state law does not mandate homeowners insurance, but lenders require it to protect their investment, ensuring insurance claims must cover damages not caused by the insured's fault. Legislative efforts are underway to address these issues, focusing on improving regulatory oversight and pricing transparency. Representative Andy Fugate is leading initiatives to require insurance companies to provide actuarial data to justify rate filings, drawing from regulatory models in neighboring Texas. Additionally, there is a push to restrict the use of credit history in determining insurance premiums, aiming to create fairer pricing structures. These reforms intend to balance insurer accountability and consumer protection without driving insurers out of the state. Lawmakers plan to advance these measures in the 2026 legislative session to enhance market fairness and affordability for Oklahoma homeowners.