High home insurance rates in Oklahoma are under scrutiny—the hailstorm loophole doesn’t hold up against investigative data, sparking calls for reform.

Thursday, May 15th 2025, 10:20 am

By:

Victor Pozadas

OKLAHOMA CITY –

You might have asked why home insurance is so expensive in the state. Oklahoma Watch contributor JC Hallman wrote a story debunking the claims that it’s because of the frequency of hailstorms we see every year. Watch the full interview above, or read along for key takeaways from the conversation.

Head to the Oklahoma Watch site to read JC Hallman’s full article.

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Oklahoma’s Home Insurance Rates Are Among the Nation’s Highest

1. Oklahomans are paying some of the highest home insurance premiums in the country, with rates often much higher than neighboring states like Texas and Arkansas.
2. Many state officials have blamed hailstorms for the recent uptick in insurance costs.

Data Does Not Support the Hail Explanation

1. Investigative reporting by Oklahoma Watch found that weather and insurance data do not align with the claim that hail is the main reason for Oklahoma’s high insurance rates.
2. For example, Texas experiences roughly double the amount of hail compared to Oklahoma, yet has lower average home insurance rates.
3. The data used to justify the hail explanation is described as vague and not robust.

Regulatory Structure Favors High Rates

1. Oklahoma law allows state intervention if insurance rates are too low (to ensure company profitability), but not if rates are too high, under the assumption that market competition will control prices.
2. In practice, this has resulted in little to no intervention when rates become unaffordable, and the process for declaring a “noncompetitive market” (which could trigger regulatory action) has only been used once.
3. The lack of state action when rates rise, combined with the narrative that hail is solely to blame, discourages homeowners from shopping around or demanding change.

Comparison with Other States

1. Texas law allows for regulatory intervention if rates are either too high or too low, offering more protection for consumers.
2. Oklahoma’s approach, based on a law passed 20 years ago, is now seen as outdated and possibly misused.

Potential for Reform

1. The legislator involved in passing the original law acknowledges it has been warped from its original intent and suggests it could be changed.
2. There is a call for greater public engagement, encouraging residents to contact lawmakers and the insurance commissioner to demand action.

Underlying Issues and Broader Context

1. The discussion touches on broader debates about free-market economics and regulatory oversight.
2. There is concern that officials and industry representatives may be interpreting data in ways that reinforce their existing beliefs or policy positions, rather than relying on objective analysis.

Call to Action

1. The segment closes by urging Oklahomans to make their voices heard if they believe the market is not competitive and to push for legislative or regulatory change.