Monday, October 21st 2024, 6:59 pm
Homeowners' insurance rates are going up across the country, and customers in Oklahoma are seeing as much as 30% increases.
The Oklahoma Insurance Department said that is because insurance companies are paying more to replace and repair damages due to inflation.
Ron and Jeannette Preston's home is destroyed after it caught fire on Oct. 20.
The retired couple dropped their insurance eight years ago and will have to start over on their own.
Ron, 82, and 72-year-old Jeannette, along with their son, grandchild and two dogs, lost everything when their home near 51st and Lynn Lane caught fire.
“There's a fire that started in the garage,” said Ron. “I think it was the problem with the two freezers being plugged into the same circuit.”
The Prestons said they paid off the home eight years ago, so they dropped their insurance after the company wouldn't pay to replace their damaged roof.
"That's the way it goes,” said Ron. “I guess I was trying to save money the wrong way.”
Oklahoma Insurance Commissioner Glen Mulready said customers are seeing significant increases in homeowners' insurance costs because companies are paying out more than they are bringing in.
He said 80% of the claims that happen in Oklahoma are on roofs, which are expensive.
"Last year, 2023, you take our top 20 insurance companies that represent 85% of our market share: For every dollar that they took in, they paid out $1.34, so they're trying to catch up from a rate standpoint on what the losses have been,” said Mulready.
Mulready said the good news is only one company has stopped doing business in Oklahoma this year.
"We currently have 113 insurance companies that have active homeowners’ policies in place,” said Mulready. “All of them aren't writing new business, but we still have a substantial number that are writing business."
He said for those whose insurance has dropped them because of claims, the Marketing Assistance Program can help.
"It's sort of an insurer of last resort, so companies that are writing insurance in our state participate in that, so folks are always able to find insurance,” said Mulready.
The Prestons already have plans to get insurance on their next home, whenever that may be.
"Have to start all over,” said Jeannette. “Get a new loan and pay off another car and house.” "The car's all paid for, too, and now have to buy a new car and either repair this one or buy a new house,” said Ron.
You can donate to the Preston's through this GoFundMe their son has set up:
The Oklahoma Insurance Department has help online and in person to answer questions about insurance.
Mulready said to shop around often, especially before your insurance is up for renewal. You can also raise your deductible to lower prices.
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