Why Nebraska homeowners insurance rates are skyrocketing, how you can save
OMAHA, Neb. (WOWT) - Affording a home in Nebraska is becoming especially challenging with rising homeowners insurance rates.
Homeowners insurance in the Cornhusker state is nearly twice as expensive as the national average, according to Insurify.
“We’ve been seeing a trend, especially over the past 12 to 18 months, more increases than we’ve seen in the past 36 years that I’ve been an agent,” Amy Hruska said. Hruska is the incoming President of Independent Insurance Agents of Nebraska.
Hruska said it used to be normal to see an annual rate increase of around 5 to 7 percent, but now those yearly increases are anywhere from 10 to 30 percent.
She said part of the reason is insurance companies are paying out more in claims due to natural disasters across the nation and world. Reinsurance rates are also going up globally, which is the insurance that insurance companies buy.
“Insurance companies have to pay higher premiums themselves. Then with paying out more claims, not investing as much or getting better returns from the stock market, and inflation, all of those things are kind of like the perfect storm. That’s why we’ve seen such huge increases,” Hruska said.
Rates in Nebraska have increased considerably compared to the rest of the Midwest, something that puzzles Hruska.
“I don’t really know why that is. I mean we’re not having more flooding or hail or wind than Oklahoma or Kansas or Iowa, but there’s something about Nebraska that the rates are just really astronomically high,” Hruska said.
Hruska said insurance goes in soft and hard market cycles and it will ease up over time.
While that doesn’t mean insurance companies will roll back prices, she said they will be willing to take on more risk and write more policies.
West Omaha homeowner of 22 years, Troy YoungBlood, has experienced the impacts of these skyrocketing rates firsthand.
“With inflation the way it is, we don’t go out to eat all the time, we don’t travel all the time, we don’t buy new cars every year. We just watch our money and pay for things that we need to, like insurance,” YoungBlood said.
In recent years, his homeowners insurance rates have jumped up from 9 to 13 percent increases annually, even after switching companies a few years back for a better price.
“It’s just something we have to live with. We want to keep our house fully insured for whatever it’s worth in case of fire, storms like we’ve had, it would be all replaced or at least we could rebuild,” YoungBlood said.
Hruska offered advice for people hoping to save money on their insurance policies in both the short and long term.
She recommended reviewing your insurance program with your agent to make sure you’re not paying for something you don’t need, looking at bundling insurance for discounts, considering a higher deductible plan, or reducing your risk of having a claim through upgrades like getting a new furnace or hot water heater.
Hruska said you could also consider switching to a new company, but cautioned against doing it too often.
“Insurance companies now are kind of quick to find who are the price shoppers and switching insurance companies every year. They’re rewarding those customers that are staying with the company for a longer period of time, because they’re building longevity into their insurance premiums,” Hruska said.
YoungBlood says he’s sticking with his agent, Lacey Brown at State Farm, mostly because he trusts her advice.
“Relationship goes a long way with me, customer service is number one, and I’ll pay for that,” YoungBlood said.
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