Oklahoma Homeowners Pay Some of the Highest Insurance Costs In The Country

Oklahoma homeowners face some of the highest insurance costs in the U.S., a reflection of the state’s position in Tornado Alley and its vulnerability to severe storms, hail, and wind damage.

While costs are even steeper in Gulf Coast states, new data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report show that Oklahoma remains one of the costliest markets in the central U.S.

Oklahoma’s Insurance Costs in Context

According to the American Community Survey (ACS) data from the U.S. Census Bureau, Oklahoma homeowners with a mortgage typically pay $2,000–$2,499 annually for homeowners insurance, while those without a mortgage average $1,500–$1,999. Overall statewide costs fall into the $1,500–$1,999 range.

Oklahoma has 1,053,182 insured homeowner households in total—567,767 with a mortgage and 485,415 without. Among mortgaged owners, 54,692 pay less than $100 annually and 83,041 pay $4,000 or more. Among those without a mortgage, 138,202 pay less than $100 and 45,761 pay $4,000 or more.

Compared with nearby states, Oklahoma is among the highest. Kansas and Nebraska homeowners with a mortgage also average $2,000–$2,499, while Missouri averages less, at $1,500–$1,999. Texas homeowners pay similarly high premiums, averaging $2,000–$2,499, while Arkansas averages less, at $1,500–$1,999. This places Oklahoma among the costliest insurance states in the Midwest and Southern Plains.

Climate Risks Across the Region

The Realtor.com 2025 Climate Risk Report shows how climate hazards drive insurance premiums across the country. Miami, FL homeowners pay the most in the U.S., with average annual premiums of $22,718, or 3.7% of median home value. Cape Coral, Sarasota, and Tampa also rank among the most expensive.

Oklahoma does not appear in the report’s list of metros with the steepest insurance burdens, but the state’s risks are significant. Positioned in the heart of Tornado Alley, Oklahoma experiences frequent tornadoes, hailstorms, and severe winds, which contribute to its elevated premiums.

While these risks differ from hurricanes or wildfires, the frequency of claims keeps insurance costs high statewide.

A National Affordability Challenge

Even though Oklahoma premiums are already high, insurance affordability is an issue across the country. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already faced challenges obtaining or renewing policies.

These rising costs are also changing homebuying decisions. Nearly 30% of buyers said they had completely changed the geographic areas they were searching because of insurance concerns, while another quarter reported overhauling their strategies altogether. Even more concerning, 58% of homeowners said they would consider dropping coverage entirely if premiums rose too high, with younger generations the most likely to do so.

For Oklahoma homeowners, affordability is already a pressing issue. With premiums among the highest in the country, households face difficult trade-offs between adequate coverage and household budgets. As severe weather risks continue to intensify, insurance costs in Oklahoma are likely to remain among the most challenging in the U.S.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.