Oklahoma regulator releases new rules for OKReady home insurance program

A pilot application process will begin in March

Oklahoma regulator releases new rules for OKReady home insurance program

Programs

By Josh Recamara

The Oklahoma Department of Insurance has released eligibility rules and income tier brackets for the OKReady home hardening program, which offers grants to homeowners for roofing upgrades and other mitigation projects.

The program was established through the Strengthen Oklahoma Homes Act, which was passed in May 2024. It is set to run through November 2027, with funding from federal sources and other financial means, AM Best reported.

A pilot application process will begin on March 3, focusing on 100 homes in designated ZIP codes, which will be announced in February. The department plans to launch three pilot phases to streamline the application and review processes.

The grants will provide up to $10,000 for projects that meet the Insurance Institute for Business and Home Safety (IBHS) Fortified standard with a high wind designation and a hail supplement. Funds will be paid directly to contractors after the IBHS Fortified certification is received. The program will operate on a first-come, first-served basis, with priority given to lower-income homeowners and those in higher-risk areas.

To determine application priority, the department has divided households into income tiers. The first tier, which receives priority, includes households with an annual income of $62,138 or less. Households with incomes above this threshold will be placed in income tier 2.

Eligibility requirements include that the home be a single-family residence in good repair, serve as the primary residence, and be owned by the applicant.

Applicants must also provide proof of an active insurance policy, and homes located in flood zones must carry flood insurance. Additional documentation, including a Social Security number, the previous year's 1040 tax form, and a Homestead Exemption form, will be required. Applicants applying on behalf of others must submit a power of attorney, according to the report.

Insurance Commissioner Glen Mulready expressed hope that the program would promote resilience and mitigation efforts across the state. “I’d like to think that five years down the road, the grants we’ve issued only represent 10% of the homes that have actually been fortified,” he said.

The department also plans to educate homeowners about the potential benefits of mitigation projects, including premium discounts and lower future deductibles. Mulready noted that the OKReady program is modeled after Alabama’s successful resiliency grants program.

The department expects to award thousands of grants in 2025.

According to BestLink, the five largest writers of homeowners multiperil insurance in Oklahoma during 2023, based on direct premiums written, were: State Farm Group (28.56%), Farmers Insurance Group (12.73%), Allstate Insurance Group (10.37%), USAA Group (9.2%), and Liberty Mutual Insurance Cos. (8.04%).

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