Insurers Offering Discounts for Tornado-Resilient Oklahoma Homes

Dozens of insurance companies are now offering discounts to Oklahomans who have built or retrofitted their homes to certain tornado-resilient standards, according to the Oklahoma Insurance Department.

The discounts are the result of a new law that went into effect on April 1. House Bill 1720, passed in 2017, requires an insurance company’s savings be passed on to the consumer. If a homeowner retrofits or builds a new home to certain specified standards, the bill requires the insurance company to factor the more resilient construction into the insurance premium for the home based on the insurance company’s own actuarial analysis.

Since April 1, multiple companies have notified the Oklahoma Insurance Department (OID) of their premium rate discount.

Oklahoma Insurance Commissioner John Doak has long been a proponent of stronger building codes.

“Storm season is here, and we’ve got to be thinking proactively to save lives and property,” said Doak in the department’s announcement. “I’m proud to see our insurance companies stepping up for Oklahomans. Homeowners will see the advantage of having a stronger home with more affordable insurance rates, higher resale value and can withstand up to an EF-2 tornado.”

Gov. Mary Fallin signed House Bill 1720 into law last spring. The law does not mandate building codes or standards. It uses the FORTIFIED construction standards set by the Insurance Institute for Business and Home Safety.

The premium rate discount has begun for 17 insurance companies that notified OID they are offering a discount.

More insurance companies will also be offering the discount because the two advisory organizations to which they subscribe, the American Association of Insurance Services and Insurance Services Office, have filed discounts with insurance department.