Home Insurance and Rising Construction Costs in Oklahoma City: Are You Properly Covered?

When the Bakers in Oklahoma City discovered hail damage on their roof after a spring storm, they expected the repair process to be straightforward. They filed a claim, called a contractor, and thought the insurance payout would easily cover the work. But when the estimate came back, they were shocked — labor and material costs had risen so much in recent years that the payout barely covered half the replacement. Suddenly, a simple claim turned into a stressful financial setback.
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This situation is becoming more common for Oklahoma homeowners. Between inflation, supply chain issues, and a shortage of skilled labor, the cost of rebuilding after damage is higher than ever. That means your home insurance coverage may not stretch as far as you think.

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Why Construction Costs Are Rising in Oklahoma City

The cost of repairing or rebuilding a home in Oklahoma has surged in recent years for several reasons:
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• Inflation has driven up prices for basic materials like lumber, shingles, and concrete.
• Labor shortages in the construction industry have pushed wages higher.
• Supply chain delays mean materials sometimes cost more simply because they’re harder to source.
• Severe weather in Oklahoma increases demand for contractors after hailstorms, tornadoes, or high winds, driving prices even higher.

For homeowners, that means the same damage that might have cost $15,000 to fix a decade ago could now cost $25,000 or more.

​Replacement Cost vs. Actual Cash Value

One of the biggest factors in whether your insurance keeps up with construction costs is how your policy handles claims.
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• Replacement Cost Coverage: Pays what it actually costs to repair or rebuild with new materials at today’s prices.
• Actual Cash Value (ACV): Pays the depreciated value of your damaged property, which is often much less.

For example, if your roof is 15 years old, an ACV policy might only cover a fraction of replacement costs, leaving you responsible for thousands. Replacement cost coverage, on the other hand, helps you rebuild without a major financial gap.

​Why Coverage Limits Matter

insured for $200,000 but rebuilding after a total loss now costs $260,000, you could be left owing the difference.
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This is why reviewing and adjusting your policy limits is critical, especially as costs rise. Some policies include inflation guards, which automatically increase your coverage over time, but they don’t always keep pace with real-world jumps in construction pricing.

Protecting Your Home in Today’s Market

To stay ahead of rising costs, homeowners in Oklahoma City should:
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• Review coverage limits annually to reflect current construction costs.
• Ask your agent whether your policy includes replacement cost or actual cash value.
• Consider endorsements that raise coverage for specific risks, like roof replacements.
• Keep updated records of your home’s value, improvements, and materials.

Being proactive now can prevent financial stress later, especially when severe weather is so common in Oklahoma.

​Why Work with Oklahoma Insurance Professionals

As an independent agency right here in Oklahoma City, we understand how quickly repair and rebuilding costs are climbing. We help homeowners adjust policies before disaster strikes, so you’re not left underinsured after a storm.

Your home is more than just a building — it’s where your family lives, grows, and makes memories. Protecting it fully means making sure your coverage keeps pace with today’s costs.

​Contact Oklahoma Insurance Professionals today for a policy review and make sure your home insurance reflects the true cost of rebuilding in Oklahoma City.

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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. ​​