Recent research shows that Nebraskans are paying the second-highest home insurance rates in America, according to KMTV.
What’s happening?
A study from Bankrate has shown that 8.6% of Nebraska household income goes towards home insurance annually. It is second only to Louisiana, which is paying 10.8%. In absolute dollars, Nebraskans are paying the most, with an average of $6,425 annually.
“Every year, they raise it, raise it, raise it,” said Omaha resident Joyce Kleidosty, per KMTV. “And it’s just getting to a point that it’s like they’re just trying to gouge you.” She says she’s paying $2,000 for insurance monthly.
While the trend is pronounced in Nebraska, it’s being seen nationally.
Why is home insurance important?
Rising insurance rates are becoming a critical climate issue. Researchers at the University of Omaha draw a clear line between the rising insurance costs in Nebraska and destructive weather patterns like hail and storms.
Ongoing atmospheric pollution has been contributing to more intense natural disasters, including floods, which have in turn increased the liability of homeowners. Insurance companies have either had to increase premiums or withdraw coverage altogether in risky areas. Increased claims have led to massive losses in the insurance industry.
The Senate Budget Committee says this challenge could lead to a housing crisis worse than 2008’s.
What’s being done about insurance rates?
University of Omaha researchers have recommended hardening homes with retrofits to minimize damage from weather and increasing price transparency by insurance providers.
“The FORTIFIED Roof standard, proven in field and lab tests, cuts storm losses dramatically while earning insurance discounts up to 35%,” wrote professor of economics Zhigang Feng. “A Nebraska program — funded through federal dollars and state bonds — could pay for itself through avoided losses and recurring discounts. If retrofits cost $6,000 and reduce premiums by $500 annually, homeowners earn an 8% return before counting avoided deductibles — better than five-year Treasuries.”
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