Home owners in Nebraska should consider purchasing home insurance since it helps protect them from the financial burden of unforeseen losses caused by vandalism and theft, fire, smoke, lightning, and other weather-related events.
How Much Does Nebraska Home Insurance Cost?
The average cost of home insurance in Nebraska is $901 per year, according to the Insurance Information Institute. Insurance companies consider various criteria when they determine consumers’ rates, such as the age and condition of your home and your home’s distance from the local fire station. The cost of insurance is also impacted by the value of your property and possessions.
Some insurance companies offer discounted rates to customers who install smoke detectors, sprinkler systems, burglar alarms, or other safety devices designed to reduce the potential of property loss. Homeowners also qualify for multi-policy discounts if they consolidate their home owner’s and auto policies. Another option is to lower your premium and increase your deductible, or the amount of money you must pay before the insurance company begins paying a claim. If you do choose this option, make sure you can afford to pay the higher deductible if your home suffers damage.
What Does It Cover?
Standard home insurance policies cover damages caused by fire and smoke; windstorm and hail; lightning; vandalism and theft; and the weight of ice, snow, or sleet. Although most policies cover most types of damage, there are always exclusions that apply. For example, damages from floods and earthquakes are not covered under standard home insurance policies. To get this type of insurance you’ll need to purchase additional coverage from your provider.
Most home insurance policies include liability coverage, which protects you from a potential claim or lawsuit for bodily injury or property damage that occurs as a result of your negligence. Liability coverage also pays medical expenses in the event that someone is injured on your property or through your personal activities. To ensure that you are shielded from the cost of litigation and damages, consult your insurance agent about any exclusions that may apply.
Do I Have to Get Home Insurance in Nebraska?
Home insurance isn’t required by the state of Nebraska, but most lenders require it before they finance the purchase of a home. Besides, investing in home insurance is a wise thing to do because it can mitigate the financial risk caused by a natural disaster or fire.
Optional Coverage to Consider
- Flood. Flood insurance is not included in standard home owners’ policies. However, if your home is located in an area prone to flooding, your lender must require flood insurance. Even individuals who live in low-risk areas should consider purchasing this insurance, because obtaining the insurance is often cheaper than obtaining disaster relief loans from the government in the event that your home is damaged by flood waters. Nebraska residents are encouraged to buy flood insurance through the National Flood Insurance Program (NFIP). For more information, contact the NFIP at 1-888-379-9531.
- Earthquake. Earthquakes are an infrequent occurrence in Nebraska. However, the last earthquake to occur in Nebraska was a magnitude 3.6 earthquake in October 2012. Home owners should consider purchasing earthquake insurance, which is not included in basic home insurance policies. Available from private insurance companies, earthquake insurance comes with a separate deductible. It is available as an endorsement that can be added to existing policies. Contact your insurer for further information.
- Hail. Damage caused by hail is usually covered by standard insurance policies. Nebraska’s Department of Insurance has compiled a guide to help consumers determine whether roof damage has been caused by hail. Become familiar with your insurance policy so that you are aware of what your policy requires you to do if you suspect this kind of damage.
Mobile Home Insurance in Nebraska
A specific policy insures mobile homes, also known as manufactured homes. Standard mobile home insurance policies cover the mobile home and provide theft and liability protection. If your home is damaged by a covered peril and you must move temporarily, a standard policy will also cover any additional living expenses, such as food costs, lodging, relocation, and storage expenses. However, all mobile insurance policies are not identical, and they can vary in the extent of coverage they offer. Keep in mind that home owner’s insurance may not cover your mobile home while it is being transported. Check your policy to determine whether exclusions apply.