Affording a home in Nebraska is becoming increasingly challenging 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 nationally and globally. Additionally, reinsurance rates are rising worldwide, leading insurance companies to pass on these costs to policyholders.
Interestingly, rates in Nebraska have surged significantly compared to other Midwestern states, despite not experiencing more frequent or severe natural disasters. Hruska notes that insurance markets operate in cycles, and while prices may not decrease immediately, insurance companies will eventually be more willing to take on risk and write more policies.
One homeowner in West Omaha, Troy YoungBlood, has felt the impact of these skyrocketing rates firsthand. Despite switching companies in search of better prices, his homeowners insurance rates have continued to rise by 9-13% annually. YoungBlood emphasizes the importance of maintaining adequate insurance coverage, even if it means making sacrifices in other areas of spending.
To help homeowners save money on their insurance policies, Hruska offers several practical tips. These include reviewing your insurance program with your agent to ensure you’re not overpaying for unnecessary coverage, bundling insurances for discounts, considering a higher deductible plan, and reducing the risk of claims through home upgrades.
While switching to a new insurance company may offer savings, Hruska advises against doing it too frequently. Insurance companies often reward long-term customers with lower premiums, as they value loyalty and stability in their customer base.
YoungBlood, for example, values the relationship he has with his agent at State Farm and prioritizes customer service over price. He believes that trust and personalized service are worth paying for in the long run.
In conclusion, the rising cost of homeowners insurance in Nebraska presents a significant financial challenge for residents. By understanding the factors driving these increases and implementing strategies to save on insurance premiums, homeowners can navigate this challenging landscape more effectively. Building a strong relationship with a trusted insurance agent and staying informed about available discounts and coverage options can help homeowners protect their most valuable asset while managing costs.
