KRMG In Depth: A new type of insurance available for residents of disaster-prone Oklahoma

In recent years, Oklahoma has suffered any number of natural disasters, including massive wildfires, earthquakes, ice storms, and tornadoes.

In fact, a study of Federal Emergency Management Agency (FEMA) data indicates Oklahoma leads the nation, with 52 declared disasters since 2000 affecting some 1.2 million people, according to Steve Gaer, President of Recoop Insurance.

[Hear the KRMG In Depth Report on Recoop Insurance HERE]

His company offers a new type of policy, which pays off a lump sum in the event of a covered disaster, ranging from $5,000 to $25,000.

There are important caveats, not the least of which is one has to have a homeowner’s (or renter’s) insurance policy to qualify for a Recoop policy.

It is not intended to provide replacement value for a lost home, Gaer told KRMG recently, but rather to give the people involved a quick infusion of cash to get the recovery process started.

“We’re not trying to make people whole on their damage. What we’re trying to do is bridge the gap and get them some money in their hands... within 24 or 48 hours of the event, and them submitting (the) picture of their claim,” he explained.

The loss has to be part of a declared natural disaster, with the sole exception of natural gas explosions, and the policy holder must have suffered a minimum of $1,000 damage.

Recoop policies do not carry a deductible, and one’s rates do not go up based on making a claim.

Gaer says the price of the policies is based on the data regarding the frequency of natural disasters in a given area, but as an average nationwide a $10,000 policy would cost about $440 a year.