Year-round threats of disasters ranging from lightning storms and tornadoes to record-breaking snow dumps make home insurance in Nebraska a must. If you have a mortgage, odds are you’re probably in need of home insurance anyway – and even if you don’t, you’ll want to protect your asset!
How much you pay for your homeowners insurance depends mostly on your home’s replacement cost and how much dwelling coverage it requires. Don’t think that skimping on your dwelling coverage will save you money – if there’s a disastrous loss, you’ll be responsible for paying the difference between what your home would cost to rebuild and what it’s insured for!
Let’s take a look at the average cost of home insurance in Nebraska and the most common rating factors for home insurance.
What is the Average Cost of Home Insurance in Nebraska?
The average cost of homeowners insurance in Nebraska for a policy with $300,000 in dwelling coverage is estimated to be about $3,510/year. Below is a breakdown of how an increase in your dwelling coverage limit might impact your rates.
- A home with a $200,000 dwelling coverage limit is estimated to cost $2,660/year to insure.
- A home with a $400,000 dwelling coverage limit is estimated to cost $4,369/year to insure.
By comparison, the national average (as of September 2023) sits at about $1,754/year. Home insurance in Nebraska tends to be higher than in most other states, in part due to its volatile weather patterns. We’ll get into a little more detail about why that matters in the sections below.
Rating Factors for Home Insurance in Nebraska
Insurance companies in Nebraska use complex algorithms to assess these factors and determine your premium. To get more accurate information for your situation, consult with a rep from AHI Group.
Home Safety Features
Having security systems, smoke detectors, burglar alarms, and other safety features can reduce the risk of theft and damage, potentially leading to lower premiums. Also, the proximity of your home to a fire hydrant or station can impact your premium. Homes closer to fire protection services may have lower premiums since they’re likely to receive help in time if there’s an accident.
Claims History
Your past insurance claims can influence your premium. If you’ve had multiple claims or high-value claims, insurers might view you as a higher risk and charge higher premiums.
Home Characteristics
Things like construction, age, etc. can affect insurance costs. Newer homes or those built with fire-resistant materials can have lower insurance premiums. The square footage of your home and its overall value can also contribute to the replacement cost, which affects the premium, and the type of your roof (whether it’s fire-resistant, more durable, made from metal, etc.) can play a role.
Location
The geographic location of your home plays a significant role. Factors like the distance to a fire station, proximity to water bodies (which could increase flood risk), crime rates in the area, and the history of natural disasters in the region can impact your premium. Nebraska has a volatile weather history, but some cities are more prone to poor weather than others.
Deductible
The deductible is the amount you agree to pay out of pocket before the insurance coverage kicks in. A higher deductible often leads to lower premiums, while a lower deductible increases your premium.
The Weather in Nebraska
Nebraska is no stranger to extremes in weather, which is one of the major reasons why home insurance costs are so high in the state. Larger cities closer to bodies of water or that are just generally closer together may also be more subject to rate hikes.
Fires in Nebraska have become more frequent due to potential climate change impacts, burning tens of thousands of acres and removing people from their homes. In April 2022, two fires two weeks apart burned a chunk of land near the size of Omaha by Cambridge, resulting in almost $2.3 million in damages. As insurance companies respond to claims of houses having been burned down, and roofs ripped off by severe weather, they’re having to raise their premiums to ensure their pool is sufficient to continue paying out more claims. And what does this mean? Higher premiums.
Combating Higher Premiums with AHI Group
While Nebraska does see some of the highest home insurance premiums, all is not lost. AHI Group has plenty of reputable insurance carriers that we do business with, and we’re happy to find you a match that gives you the best price. We’ll also provide you with tips on how to save money, such as:
- Installing smoke alarms and burglar alarms
- Raising your deductible
- Qualifying for multiline insurance discounts
- Taking preventative safety measures around the house
- Replacing your roof with fire-resistant materials
Give us a call today to start a quote for your Nebraska home insurance. We’re happy to help you find a more affordable solution so you can continue protecting your home with ease of mind.
