September 9, 2025
Nebraska homeowners pay some of the highest insurance premiums in the U.S. due to tornadoes, hail, and flooding. Learn how to navigate rising costs and risks.
Nebraska homeowners face some of the steepest insurance premiums in the nation, with the Cornhusker State ranking among the top three most expensive states for homeowners coverage. Understanding Nebraska's unique risk profile and regulatory landscape is crucial for property owners and insurance servicers working in this challenging market.
Nebraska homeowners insurance costs have significantly exceeded national averages, with average annual premiums of $4,906 to $5,912, making it the second most expensive state in the nation behind only Oklahoma. The state has experienced the largest insurance rate increases in the country, with premiums more than doubling over the past decade.
The most dramatic spike occurred in 2024, when Nebraska saw a staggering 22-23% increase in homeowners insurance rates, far exceeding the national average increase of 11.4%. Local insurance agents report seeing annual rate increases of 10-30%, compared to the historical norm of 5-7%.
Nebraska's position in Hail Alley and Tornado Alley creates a perfect storm of weather-related risks that directly impact insurance premiums.
The April 26, 2024 tornado outbreak exemplified Nebraska's vulnerability, with multiple tornadoes causing extensive damage across the state, including a rare EF4 tornado that struck the Omaha metropolitan area. Since 2011, Nebraska has been hit by at least one billion-dollar storm every year, demonstrating the consistent threat severe weather poses to property.
Nebraska ranks as the 6th highest state for hail-related property damage, with cumulative damages of $134.7 million and over 548 hailstorms recorded between 2012-2021. The state holds the record for the largest hailstone documented in Nebraska history, measuring 7 inches in diameter with an 18.75-inch circumference, recorded near Aurora in 2003.
While Colorado leads in per-capita hail losses, Nebraska ranks second nationally with 319 annual hail events totaling $50.8 million yearly, averaging $27.81 per capita.
Eastern Nebraska communities like Leshara have experienced recurring flood events, with 14 people requiring rescue during flash flooding in May 2024. The historic 2019 flooding affected 84 of Nebraska's 93 counties, resulting in over $1 billion in statewide damage.
Research from the University of Nebraska indicates that "extreme weather events are coming more often," with 31 communities in Douglas, Dodge, and Sarpy counties identified as particularly vulnerable to future flooding.
Nebraska law requires specific notice periods for policy changes:
Unlike many high-risk states, Nebraska does not operate a FAIR Plan, meaning homeowners in high-risk areas must seek coverage through surplus lines markets when standard carriers decline coverage.
Nebraska's significant agricultural presence creates unique considerations for homeowners insurance:
Nebraska's harsh winters add another layer of risk:
Recommended coverage enhancements include water backup coverage, equipment breakdown protection, and service line coverage.
Given the complex nature of Nebraska's insurance market and rising costs, insurance servicers can improve customer satisfaction while reducing operational expenses through strategic partnerships. With Nebraska homeowners facing premium increases of 10-30% annually and seeking to understand their coverage options, partnering with Covered enables warm transfers that assist customers in exploring coverage options that may help address weather-related risks. This approach can help servicers provide enhanced customer experience and efficiency while helping customers better understand their insurance options in the face of rising costs.
The following table compares average annual homeowners insurance premiums for $300,000 dwelling coverage across Nebraska and its neighboring states:
Sources: NerdWallet, Bankrate 2025 data
Nebraska's premiums are dramatically higher than all neighboring states, with costs nearly three times those of Wyoming and South Dakota. Even Kansas, which shares similar tornado and hail risks, has premiums 37% lower than Nebraska.
Industry experts anticipate that Nebraska's rate increases will continue "well in excess of the rate of inflation" due to reinsurer concerns about the state's exposure to extreme weather. However, rates are unlikely to decrease significantly, though the pace of increases may moderate as insurance companies achieve closer profitability.
Coverage considerations that Nebraska homeowners may want to evaluate include:
Nebraska's homeowners insurance market reflects the increasing impact of climate change on property insurance costs. With severe weather events becoming more frequent and intense, premiums will likely continue rising faster than inflation. Success in this market requires thorough risk assessment, comprehensive coverage education, and proactive mitigation strategies.
The state's regulatory environment, while not offering a FAIR Plan safety net, maintains reasonable notice requirements for policy changes. However, the lack of market stabilization mechanisms places greater importance on building strong carrier relationships and offering comprehensive risk management guidance to homeowners.
For insurance servicers and agents, Nebraska's challenging market conditions create opportunities to add genuine value through education, appropriate coverage placement, and strategic partnerships that help customers navigate rising costs while maintaining adequate protection against the state's significant weather-related risks.
Data sources: MoneyGeek, LendingTree, NerdWallet, Insurance.com, Bankrate, National Weather Service, University of Nebraska research, and various state insurance departments. Premium comparisons based on $300,000 dwelling coverage with standard deductibles.
This article provides general information about Nebraska’s homeowners insurance market based on available industry data as of 2025. Individual circumstances vary significantly, and premium quotes, coverage options, and policy terms differ by insurance company. Consumers should consult with licensed insurance professionals for specific coverage recommendations and current pricing. Information presented should not be considered as guaranteed outcomes or personalized insurance advice.
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*Savings claim based upon averaging actual anonymized savings data for dwelling-only insurance rates paid (from July 2023 - June 2024) by customers of two of Covered’s largest mortgage industry partners across twenty-seven (27) US states. Bundles and non-dwelling insurance coverages were excluded.
† Net Promoter Score (“NPS”)® calculation averages post-purchase customer satisfaction surveys from 9/24/2024 - 2/28/2025. NPS® is a market research metric measuring customer satisfaction with a scoring calculation that incorporates both detractor and promoter customer feedback.
Quotes are presented solely for your convenience. Savings may vary. Rates are subject to change based upon the specific coverage you select and other factors that apply to your situation. CA License #0M81402, doing business as Cubbard Insurance Solutions in California.
