Homeownership is a dream for many individuals, but in Nebraska, that dream is becoming increasingly challenging to achieve due to rising homeowners insurance rates. According to Insurify, homeowners insurance in the Cornhusker state is nearly twice as expensive as the national average. This trend has been particularly pronounced over the past 12-18 months, with annual rate increases ranging from 10-30%, compared to the previous norm of 5-7%.
Amy Hruska, the incoming President of Independent Insurance Agents of Nebraska, attributes these steep increases to a combination of factors. Insurance companies are paying out more in claims due to natural disasters both locally and globally. Additionally, reinsurance rates, which insurance companies purchase to protect themselves, are also on the rise. This perfect storm of increased claims, lower investment returns, and inflation has led to the significant spike in homeowners insurance rates in Nebraska.
Interestingly, rates in Nebraska have surged more compared to other Midwestern states, despite not experiencing more frequent or severe natural disasters. Hruska acknowledges this discrepancy but remains hopeful that the insurance market operates in cycles, and rates will eventually stabilize.
One homeowner in West Omaha, Troy YoungBlood, has felt the impact of these skyrocketing rates firsthand. Despite switching insurance companies in search of a better price, his rates have continued to climb annually. YoungBlood emphasizes the importance of maintaining full coverage for his home, even if it means making sacrifices in other areas of his budget.
To help homeowners mitigate the rising cost of insurance, Hruska offers several practical tips. These include reviewing your insurance program with your agent to ensure you’re not overpaying, bundling insurances for discounts, considering a higher deductible plan, and investing in home upgrades to reduce the risk of claims. While switching to a new insurance company may offer temporary relief, Hruska advises against frequent switches, as insurance companies reward long-term customers with lower premiums.
YoungBlood echoes the sentiment of valuing a strong relationship with his insurance agent, Lacey Brown at State Farm. For him, customer service and trust are paramount, even if it means paying a bit more for peace of mind.
In conclusion, the rising cost of homeowners insurance in Nebraska is a significant concern for residents. By understanding the factors driving these increases and implementing proactive measures to save on insurance, homeowners can navigate these challenges and protect their most valuable asset.