Best, Cheapest Homeowners Insurance in Oklahoma
Due to factors such as frequent tornadoes and high crime rates, Oklahoma has the third-highest home insurance rates in the country, at $286 a month. This high average rate is largely due to Oklahoma’s propensity for tornadoes, but many other factors go into it as well.
We analyzed thousands of home insurance quotes in Oklahoma, looked at the factors that influence them and compared home insurance companies operating in the state to help make your search for the best, cheapest quote easier.
- Cheapest home insurance in Oklahoma
- Oklahoma homeowners insurance rates by city
- Best home insurance in Oklahoma
- Why home insurance is so expensive in Oklahoma
Cheapest homeowners insurance rates in Oklahoma
The table below shows the cheapest home insurance companies in Oklahoma. Oklahoma Farm Bureau has the lowest average rate, $241 a month, while State Farm has the highest, $337.
| Company | Monthly rate |
|---|---|
| Oklahoma Farm Bureau | $241 |
| Allstate | $267 |
| Oklahoma average | $286 |
| USAA | $287 |
| Farmers | $297 |
| State Farm | $337 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest homeowners insurance rates in Oklahoma by city
The table below shows average cost of home insurance in the biggest cities in Oklahoma. Broken Arrow has the cheapest average home insurance rate, at $245 a month, while Midwest City has the highest average rate, $353 a month.
| City | Monthly average rate | Difference from Oklahoma average rate |
|---|---|---|
| Broken Arrow | $245 | -14% |
| Edmond | $326 | 14% |
| Enid | $297 | 4% |
| Lawton | $303 | 6% |
| Midwest City | $353 | 23% |
| Moore | $329 | 15% |
| Norman | $319 | 12% |
| Oklahoma City | $343 | 20% |
| Tulsa | $246 | -14% |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Best homeowners insurance companies in Oklahoma
We analyzed various characteristics of home insurance companies in Oklahoma, such as premium cost, market share and customer satisfaction. The following insurers are at the top of our list:
- Most popular: State Farm
- Cheapest premium: Oklahoma Farm Bureau
- Best for military personnel: USAA
State Farm: best customer satisfaction
State Farm stands out as the most popular home insurance company in Oklahoma. The insurer holds 28% of the homeowners insurance market share in the state. This is in part due to its strong customer service track record.
The National Association of Insurance Commissioners (NAIC) Complaint Index ranks State Farm at 0.06. This is below the national average Complaint Index of 1.0. Furthermore, in J.D. Power’s 2020 overall customer satisfaction study, State Farm received a rating of 829 out of 1,000, higher than the national average of 823.
While State Farm has the best reputation in Oklahoma, it also has the highest premium. State Farm’s average annual premium in Oklahoma is $4,042. This breaks down to $337 a month. That’s well above the state average of $3,433 a year. However, if customer satisfaction is a high priority for you, we strongly recommend State Farm.
Oklahoma Farm Bureau: cheapest rates
Local provider Oklahoma Farm Bureau holds the lowest average home insurance rate in the state, at $2,895 a year, or $241 a month. This is 16% less than the Oklahoma state average premium.
Oklahoma Farm Bureau has strong roots in the state. It has operated since 1946 and provides home insurance in every county in Oklahoma. If cost is a priority and you like the thought of your home insurer being close by, Oklahoma Farm Bureau is our top recommendation.
The following table shows the average rates for Oklahoma Farm Bureau in the 10 most populated cities in the state:
USAA: best for active and retired military
There are seven military bases in Oklahoma, and 10.26% of the adult population in the state are veterans. If you are either currently serving or a veteran, USAA may be your best choice. The company’s average annual premium of $3,446, or $287 a month, isn’t much higher than the state average. Furthermore, USAA’s overall customer satisfaction rating in J.D. Power’s 2020 survey was 889 out of 1,000.
USAA really shines in its specialized home insurance coverage for military members both current and retired. Its offerings to military policyholders include replacement of military uniforms in the event of destruction. Furthermore, USAA offers worldwide personal property coverage. This even applies if you currently live in a war zone. This is significant because war zones are typically excluded from standard homeowners insurance.
The main downside of USAA is that it restricts its products to current and retired members of the military, along with their families. USAA would have come in at the top of J.D. Power’s 2020 overall customer service survey if it were open to all homeowners. If you are a current or retired member of the military, expect very select, high-quality service from USAA.
Most popular homeowners insurance companies in Oklahoma
The Oklahoma home insurance market is dominated by national names, with some regional providers present in the mix. The following table shows the most popular home insurers operating in Oklahoma, their market share percentages, as well as Complaint Index and customer satisfaction ratings when available.
| Company | Market share | 2020 NAIC Complaint Index (lower is better) | J.D. Power customer satisfaction rating (higher is better) |
|---|---|---|---|
| Allstate | 8% | 3.4 | 829 |
| Farmers | 17% | 0.3 | 814 |
| Oklahoma Farm Bureau | 2% | 0.02 | NA |
| State Farm | 28% | 0.06 | 829 |
| USAA | 8% | 0.9 | 889 |
How much does homeowners insurance cost in Oklahoma?
Oklahoma has an average annual home insurance rate of $3,433. This breaks down to a monthly premium of $286.
| Oklahoma | U.S. | |
|---|---|---|
| Yearly home insurance rate | $3,433 | $1,735 |
| Monthly home insurance rate | $286 | $144 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Why is homeowners insurance in Oklahoma so expensive?
Home insurance in Oklahoma costs so much in part due to extreme weather conditions such as tornadoes, hail and flooding. The crime rate in Oklahoma also lends extra claim risk. Homeowners insurance providers in Oklahoma take all these factors and more into account when calculating home insurance quotes.
Tornadoes
Oklahoma experienced 39 tornadoes in 2020. The state is part of Tornado Alley, a strip of the Midwest with frequent tornadoes each year. Tornadoes cause an excessive amount of damage to homes in the area, and homeowners insurance companies raise their rates in order to compensate for that risk.
Depending on the part of Oklahoma where you live, you may also be required to purchase windstorm insurance. Check with your home insurance provider to see how your policy covers wind damage.
Hail
The peril of hail damage to your home in Oklahoma is immense. In April, the National Weather Center reported that three-inch hailstones fell on Norman, Okla. Between Texas and Oklahoma, the storm damage was estimated to be in the billion-dollar range. While this is an extreme incident, there is an average 19% chance of hail in Oklahoma throughout the year.
With the damage that hail can do in Oklahoma, home insurance providers charge higher rates to offset their costs. Furthermore, many providers also charge a 1% hail deductible when you file a claim for hail damage. A hail deductible is based on the dwelling coverage limit of your home insurance. This means that if your home has $300,000 of dwelling coverage, you’d pay a hail deductible of $3,000 before your insurer pays the remainder of the claim.
Check with your home insurance provider to make sure you have the proper limits for hail coverage, and whether or not you have to pay a separate hail deductible.
Flooding
River floods in Oklahoma have proven to be a significant threat to homeowners there. The federal government estimates that 107,395 homes in Oklahoma are at flood risk. However, First Street Foundation, a nonprofit that incorporates multiple flood models into a single flood risk tool, estimates that 168,869 properties in Oklahoma face a 1% annual chance of flood. That’s a 57.2% discrepancy.
Flood damage is not covered by homeowners insurance. You need flood insurance for proper coverage. You can purchase flood insurance through FEMA’s National Flood Insurance Program (NFIP) from insurers participating in the program, as well as some independent providers.
Methodology
We used Quadrant Information Services to generate thousands of home insurance quotes for every ZIP code in Oklahoma. Our sample home used to generate quotes was built in 2000 and used the following policy specifications:
- Dwelling coverage: $275,000
- Personal property coverage: 50% of dwelling ($137,500)
- Other structures coverage: 10% of dwelling ($27,500)
- Loss of use coverage: 20% of dwelling ($55,000)
- Liability coverage: $100,000
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