Oklahoma home insurance rates were hit hard by inflation, company finds. journal record
According to an analysis of the data, homeowners in Oklahoma are more affected than neighbors in other states by the rising cost of insurance premiums. (Photo by Birgit Loit at Unsplash)
While Americans from coast to coast have had to deal with persistent inflation over the past year, which has caused prices from children’s toys to car tires to rise by at least 8.6%, rising costs to home insurance policy holders. Injured even more. , according to industry analysts at PolicyGenius.
The company said in a report this week that Oklahomans have been most affected.
The company said that between May of 2021 and May of 2022, the cost of home insurance outweighed inflation, except in one of the states analyzed by PolicyGenius, in which the average premium on goods and services in 13 states exceeded the national inflation rate. 50% higher. in a release.
The average premium has increased by 12.1% as compared to a year ago. During the 12-month period examined, 90% of homeowners saw an increase in annual premiums. For those whose premiums increased, the average increase was $134, the company said. The effects were greatest in Oklahoma, with policyholders’ premiums rising to an average of $257.
During the 12 months of investigation, home insurance premiums increased by 18.5% in Arkansas, 18.1% in Washington and 17.5% in Colorado – more than double the rate of inflation. New York was the only state to register a premium increase of 8% below the inflation rate. Homeowners there saw an average premium increase of $56.
“Home insurance coverage and premium amounts are based on the cost of reconstruction, which takes into account the cost of lumber, roofing, contractors, and anything else that goes into building the home. Since home construction costs can lead to supply-chain disruptions, unprecedented labor Because of shortages and frequent natural disasters, home insurance prices have followed suit,” said Pat Howard, a licensed property and casualty insurance specialist at PolicyGenius. “It’s important for consumers to know that there are several ways to lower your premiums, including regularly repurchasing your home insurance, bundling insurance policies, or installing smart home devices.”
To determine the average premium growth, PolicyGenius examined data on 8,698 active home insurance policies that were cited for renewal from May 20, 2021 to May 20, 2022. The percentage change in each state reflects the average difference between the basic premium and the insurance carrier’s quoted renewal premium. for each policy.
The analysis was limited to the 25 states for which PolicyGenius had statistically significant policies, the company said.
