If you’re planning on building or buying your own home, you’re going to have to put some home insurance on it, especially if you have a mortgage on it. Even without a mortgage, you want to know that you’re protected in case a catastrophe happens and you lose your home. Here are some tips on getting the best deal on home insurance as well as some facts about Oklahoma homeowner’s insurance.
How Oklahoma Homeowners Insurance Rates Compare to Other States
As beautiful of a state as Oklahoma is, it’s also part of what’s known as the Tornado Alley. Tornado Alley is a name given to a group of states that have an unusually high frequency of tornadoes. Unfortunately for Oklahoma residents, Oklahoma is one of these states. Consequently, Oklahoma homeowners insurance is slightly above the national average.
The national average for homeowner’s insurance premiums in the United States was $1,132 in 2014, according to the Insurance Information Institute. The average annual premiums for Oklahoma home insurance was $1,772 that same year. In fact, Oklahoma was the fourth highest in home insurance premiums.
The three states with the highest rates were Florida, Texas and Louisiana, which averaged $2,055, $1,947 and $1,847, respectively. The three states with the lowest premiums were Utah, Idaho and Oregon. Annual premiums in these states were $634, $590 and $574.
Why Homeowners Insurance is Necessary in Oklahoma
Few things would be more devastating than to lose your home to a fire, tornado or some other natural disaster and realize you not only no longer have a home but also don’t have the funds to build or buy another home. This is why homeowners insurance is such a valuable commodity and something no homeowner should be without. This is especially true with Oklahoma homeowners and renters due to the possibilities of tornados.
How to Save Money On Your Homeowners Insurance
Despite the fact that homeowners insurance is slightly higher in Oklahoma, there are still a few ways you can save some money on your Oklahoma home insurance policy.
- Get a Higher Deductible – The deductible is the amount that you pay before your insurance company begins paying. The higher the deductible, the lower your premiums will be.
- Cash value vs Replacement cost – Cash value gives you the amount that is on your home policy whereas replacement cost pays you what it cost to replace your home. It’s a tough decision but choosing cash value can save you money.
- Bundle your policies – You’ll get discounts if you have more than one policy with your insurance company.
- Ask for discounts. – Insurance agents seldom mention discounts that may apply to you unless you’re just starting with them. Question your agent frequently about any possible discounts they may offer.
- Consider an umbrella policy – It may seem like more money to purchase an umbrella policy but it may save you in the long term if you are ever faced with a liability claim against you.
- Upgrade your home – Upgrading your with more economical and safer features can lower your premiums. Some examples are smoke and carbon monoxide detectors, deadbolt locks or alarm systems.