If you reside in Oklahoma, then you know how expensive insurance can be, especially in recent times. And, industry experts forecast that insurance premiums on property will continue to rise.
In 2017, an estimated $135 billion was paid out by insurance companies for damages suffered from earthquakes, as well as hurricanes and wildfires, across North America.
Surely, the insurance companies have to recover from these losses. So, it’s logical to expect an increase in insurance rates, an effect that is even worse in disaster-prone areas like Oklahoma.
These rates will continue to shoot upwards, and here’s why:
The periods from March through June are usually marked by highly active, severe weather in Oklahoma City. Oklahoma lies in the heart of Tornado Alley, making the area prone to severe and frequent hailstorms, tornadoes, and derechos (severely damaging windstorms) occasionally.
In Oklahoma City, in particular, tornadoes are a frequent occurrence with some even showing up between September and October.
The metro area happens to be among the major cities prone to tornado occurrences, a phenomenon that was even worse in 2019 when the state recorded more than 140 tornadoes.
Did you know that constructing your home or building with steel can lead to a significant reduction in your insurance rates when compared with traditional construction?
To understand this, let’s walk briefly through the methods with which coverage rates are determined by insurance companies and how steel can help you save on them.
Several factors come into play when determining the amount of ‘Insured Risk’. This is how insurance companies determine what you’ll pay in premiums. You’re more likely to pay lower insurance premiums if your property has a very low risk of being damaged.
In all, the type of structure is one of the most crucial determining factors of insurance prices.
Property owners in Oklahoma know that insurance is a significant investment. Premiums are estimated by insurance companies by determining the likelihood of paying out for damages commensurate with what it will take to replace or repair such a structure.
There are naturally higher costs for repair or replacement of structures with more square footage.
If you have a structure that is highly resistant to damage, it reduces the risk for insurance companies and lowers your premiums consequently. Replacement costs are also lower for insurance companies if you have a more economically constructed building. This also acts to reduce insurance rates.
With these reasons in mind, it is clear to see why insurance rates are necessarily lower for Oklahoma steel buildings. Remember that different insurance companies have different rates. So, while requesting a quote, inform the agent that you are looking to insure a steel building. And if you have added safety measures, do not hesitate to include that information as well.