Hard weather conditions tip Nebraska homeowners premiums above average

A new report on state-by-state homeowners rates shows residents in Nebraska and other Midwestern states pay a slightly higher price for coverage

Insurance News

By Lyle Adriano

The National Association of Insurance Commissioners recently published the results of its annual report on property insurance coverage and rates, and found that Nebraskans pay moderately higher-than-average rates for homeowners insurance.

Compared to the national average of $1,096 a year (based on 2013 data), the report revealed that homeowners in Nebraska pay an average of $1,135 a year.

Nebraska Department of Insurance director Bruce Ramge noted that the state’s higher rates are mainly due to weather-related claims for wind and hail damage.

As the Lincoln Journal Star reports, Nebraska ranked fifth for hail damage claims in 2014. The rank was based on State Farm’s most recent data.

The National Association of Insurance Commissioners (NAIC) reported that homeowners insurance costs increased by 6% on average from 2013 to 2014. Home values and constructions costs were considered in the calculation of the costs, along with the damage the properties sustained.

While Nebraska’s insurance commissioner does not track for similar data in the state, he encouraged consumers to talk to their insurance agent if they are looking to reduce their premiums. He said that adding weather-resistant building materials and security measures to a home could lower premiums, as well as other factors such as the size of deductibles, past claim history, multi-policy discounts, and a customer’s credit score.
 

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