TULSA, Okla. — One weather event can destroy your home, and without adequate homeowners' insurance, rebuilding could be tough, if not impossible.
For Linda Thornton, it was hail that damaged her roof. Something she was unaware of in her homeowner's insurance policy meant she didn't have coverage for roof repairs.
"I didn't know that I should have replaced it before it got this old," Thornton said.
Knowing what's in your policy is crucial, according to Bankrate insurance expert Natalie Todoroff.
"Most financial experts recommend that you check in with your policy maybe once a year," Todoroff said.
Key questions to ask your agent
Ask your agent to walk you through your policy and explain anything you don't understand, like whether the age of your roof affects your coverage and whether you need flood insurance.
"Nationally, flood insurance costs around $800 per year from the National Flood Insurance Program, and having flood insurance is a crucial tool for financial protection against extreme weather," Todoroff said. "Even though flooding is the most common natural disaster in the country, it is not covered by your homeowners' insurance policy. So without flood insurance, you are on the hook for all the repairs."
Todoroff said that's $800 in addition to your regular homeowners' premium, which is already high for the average homeowner in Oklahoma.
"Unfortunately, Oklahoma insurance continues to be extremely expensive. It costs about $4,600 per year, and that represents around 7% of median income," Todoroff said.
Ways to lower costs
To lower your cost, consider raising your deductible, but before doing so, Todoroff cautions to make sure that your deductible is something you can always pay out of pocket at a moment's notice.
That's because if you have to take on debt to pay the deductible, it can lower your credit score, which in turn can raise the cost of insuring your most valuable asset — your home.
"A drop in credit can raise your cost around $5,600, which is an extremely heavy financial burden for most people," Todoroff said. "That does not include the cost of flood insurance or any other expenses, strictly just your home insurance policy."
Flood insurance misconceptions
Many people assume they don't need flood insurance because their mortgage company didn't require it.
"Most federally backed mortgages require homes in 100-year flood zones to carry a policy," Todoroff said. "However, what we're seeing now is an increasing number of floods are happening outside of these historic flood zones, leaving a vast number of people unprotected."
Todoroff emphasized the importance of protecting your investment.
"Your home is probably the most valuable thing in your financial portfolio, and without insurance, you could wipe out all of that equity in one storm, one flood," Todoroff said. "It only takes one weather event to destroy your home."
Important reminders for policy changes
If you have a mortgage, make sure your mortgage company is informed of any policy changes you make.
"If you're changing companies, make sure to let your old company know, let your mortgage company know, and get your new company on board," Todoroff said. "Make sure everyone's on the same page so you can avoid a coverage lapse."
"This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy."
Stay in touch with us anytime, anywhere --
- Download our free app for Apple, Android and Kindle devices.
- Sign up for daily newsletters emailed to you
- Like us on Facebook
- Follow us on Instagram
- Watch LIVE 24/7 on YouTube
