Does Your Oklahoma City Home Insurance Cover Today’s Construction Prices?

When Tom and Rebecca bought their home in Edmond ten years ago, they never imagined how much the cost to rebuild it could change. After a severe storm left their roof and siding in ruins, they were shocked to learn their homeowners insurance policy didn’t fully cover the cost of repairs. Their coverage amount was based on outdated replacement costs, meaning they had to pay thousands out of pocket.
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This scenario is more common than homeowners realize. If your home insurance policy hasn’t been updated to match today’s construction prices, you could be underinsured without knowing it.

get the best oklahoma city home insurance!

Why Are Rebuilding Costs Rising?

Homeowners in Oklahoma City and surrounding areas like Norman, Moore, and Yukon have seen construction costs increase for several reasons:

• Inflation and Labor Costs: Skilled labor is more expensive than it was a few years ago, and shortages can drive up prices even further.
• Material Shortages: Lumber, roofing materials, and even drywall can fluctuate in price due to supply chain disruptions.
• Severe Weather Impact: Storms, tornadoes, and hailstorms increase demand for rebuilding, causing local costs to spike.
• Building Code Changes: Updated regulations may require more expensive materials or upgrades that weren’t in place when your home was built.

Does Your Homeowners Insurance Policy Keep Up?

Most standard policies cover replacement costs, but if you haven’t reviewed your coverage in a while, you may not have enough protection. Here’s what to check:

Coverage Limits vs. Market Costs

​Your coverage limits should reflect the actual cost of rebuilding your home, not just what it was worth when you bought it. A home insured for $250,000 a decade ago might cost $350,000 to rebuild today.

Extended Replacement Cost Coverage

Some policies offer extended replacement cost coverage, which provides an additional 10-50% above your dwelling limit if rebuilding costs are higher than expected.

Ordinance or Law Coverage

If your home needs upgrades to comply with newer building codes, a standard policy may not cover these additional expenses.

How to Make Sure You’re Covered

Get a Replacement Cost Estimate

An insurance agent can help you determine the replacement costs for your home, factoring in today’s prices for materials and labor.
Review Your Policy Annually

Home values and rebuilding costs change frequently. A yearly review with Oklahoma Insurance Professionals can keep your policy up to date.
Consider Additional Coverages

If your policy doesn’t include extended replacement cost coverage, you may want to add it to avoid coverage gaps.

What Happens If You’re Underinsured?

If a disaster strikes and your policy doesn’t cover full replacement costs, you may have to:
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• Pay out-of-pocket for the difference
• Take out loans to cover rebuilding expenses
• Settle for a smaller home or lower-quality materials

Protect Your Home With the Right Coverage

Your home is one of your most valuable assets, and keeping your homeowners insurance policy up to date is key to avoiding financial surprises. Whether you live in Oklahoma City, Edmond, Norman, or Moore, Oklahoma Insurance Professionals is here to help you navigate your coverage options.
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Get in touch today for a free policy review and ensure your home is protected at today’s construction costs—not last decade’s.

get the best oklahoma city home insurance!

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Scott Godwin
Founder

Oklahoma Insurance Professionals LLC serves Oklahoma City and the surrounding Oklahoma communities by protecting the people we work with just like we protect our own family members. Home insurance, auto insurance, business insurance, and more. We can help you find the coverage you need. ​