Insurance company does not renew some policies in Oklahoma due to wildfire risk

OKLAHOMA CITY (KFOR) – Oklahoma homeowners’ insurance policies are now being impacted by another weather element.

According to Oklahoma Insurance Commissioner Glen Mulready, about two percent of Farmers Insurance customers are affected by the recent change. The insurance company will not renew policies for people who live in an area where “wildfires are a danger.”

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“We see that from November onwards, just over 1,300 building insurance policies will no longer be renewed,” said Mulready.

Mulready said some of the company’s policyholders were affected as far away as Oklahoma County.

Due to favorable conditions for wildfires, Oklahoma is listed on the fire risk area map, which is of interest to Farmers Insurance. The FEMA Fire Index Map shows that Oklahoma is a particularly high fire risk area.

In early 2024, devastating wildfires raged in western Oklahoma, causing heavy losses to farmers, ranchers and homeowners.

“The trend we’ve noticed is that the gap between these historic years is starting to close and it’s getting warmer and drier,” said Andy James, fire management chief for the Oklahoma Forestry Service.

James said the fires are much harder to put out. The Forest Service has been talking with the Insurance Commission about the impact the fires are having on policyholders.

“There is close cooperation and coordination among all agencies in Oklahoma affected by wildfires,” James said.

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News 4 reached out to Farmers Insurance for comment on the change. They sent us this statement:

Farmers continues to offer auto, home and other personal insurance in the state. We regularly make adjustments to our product, policy and pricing to ensure we can continue to meet the needs of our customers. Those who may be affected by policy changes are encouraged to discuss options with their Farmers representative.

This decision has Oklahoma residents wondering whether other insurance companies might follow suit.

“Currently, 113 insurance companies in Oklahoma have active homeowners policies, so there’s a lot of competition,” Mulready said. “But I don’t know of anyone else that has such comprehensive wildfire coverage.”

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