New Oklahoma Proposals for Homeowners Insurance and Roof Coverage

In Oklahoma, new proposals introduced on December 10 aim to enhance the state's fortified roof program and mandate that insurance companies cover roofs that are not excessively aged or damaged. These measures address common issues like wind and hail damage, prevalent in the state. The proposals also require insurers to expedite their claim response times and suggest drafting a homeowner's bill of rights.

Legal Challenges and Rate Increases

There is criticism regarding the proposed introduction of legal challenges for policyholders pursuing litigation against insurers. Proponents argue that legal costs significantly contribute to rate increases. Rep. Mark Tedford and Sen. Aaron Reinhardt have highlighted lawsuit-related expenses as a primary cause for rate hikes, as stated in a press release. Despite discussions on revising the Property and Casualty Loss Cost Rating Act governing homeowners insurance, Tedford noted that the Oklahoma Insurance Department requested not to amend the law.

Alternative Dispute Resolution

Moving forward, Tedford expressed support for using third-party adjusters to resolve claim disputes, citing concerns that litigation can prolong and increase the cost of claims. "I really don't like litigation in a property claim," Tedford mentioned. "In my opinion, when there's litigation, it drags the claim out, adding costs to both sides."

Concerns from Policyholders and Experts

Tulsa Police Lt. Billy Hursh, representing policyholders in legal battles with State Farm over denied roof damage claims, voiced reservations about the proposals, particularly the limitations on attorney fees. "Most people don't have room in their budgets to pay for attorney fees. Insurance companies definitely do," Hursh remarked. Opposition to legal reforms also comes from industry experts, including Robert Hunter, former commissioner of the Texas Department of Insurance, who suggested that the proposals are insufficient to enact meaningful change.

Legislative Support and Consumer Protections

Attorney General Gentner Drummond's office expressed support for addressing rising homeowners insurance costs through legislative means, indicating a willingness to review future efforts. State lawmakers like Senate Minority Leader Julia Kirt have raised concerns over restricting policyholders' rights to litigation. Kirt, who supports consumer protections, emphasized the need for state laws ensuring insurance rate affordability. Similarly, Rep. Andy Fugate noted contradictions in testimony from Insurance Commissioner Glen Mulready regarding the lack of a lawsuit crisis in Oklahoma.

Future Directions and Stakeholder Collaboration

As Commissioner Mulready approaches the end of his term, candidates for the position have shared their perspectives on the proposals. Chris Merideth of Farmers Insurance underscored proactive leadership and statewide standards in addressing rate issues. Bob Sullivan and Greta Shuler offered cautious approval while noting areas lacking in health care insurance oversight and consumer protections. These initiatives result from collaboration with various stakeholders, reflecting ongoing dialogues in the sector. Rep. Tedford remains open to further feedback as the legislative process continues.

The Oklahoma Insurance Department can be reached for comments and inquiries at their Oklahoma City and Tulsa offices. This article is part of a series focusing on property insurance in Oklahoma.