Nebraska Home Insurance

Whether you live in a farmhouse near Kearney, a condominium in Lincoln, or a home in the suburbs outside of Omaha, you still need Nebraska home insurance. After all, home insurance protects you and your family, so that if anything bad happens, the money you need to rebuild is there. Still, there’s no reason to spend a fortunate on homeowners insurance in Nebraska, so we’ll show you how to get the best deal. In just a few minutes you’ll know what to look for in a home insurance policy, how much home insurance coverage you'll need to buy, and tips to save money and to lower your insurance rates.

Nebraska Home Insurance Coverage

Home insurance covers four primary things:

1. Property damage coverage – the cost to repair or replace the dwelling
2. Personal property coverage – all the things you own inside your home, like furniture, clothing, appliances, etc.
3. Medical payments coverage – covers medical bills for someone injured on your property or by your property. This only covers people outside your family.
4. Liability coverage – repairs or replaces other people’s property damaged by you or your family.

Types of Nebraska Home Insurance

The main difference between home insurance policies is how much replacement coverage each provides. The key is to have enough coverage without buying something you don’t need.

There are three types of home insurance policies:

1. Actual Cash Value – covers the replacement cost of property, less depreciation.
2. Replacement Coverage – pays the replacement cost of the loss, up to the limits of the policy.
3. Guaranteed Replacement Coverage – fully covers the replacement cost of the loss, even if it is more than the policy limits.

If your home was accidentally damaged or destroyed and you had an Actual Cash Value policy, it would be up to you to make up the difference between the depreciated value of your property and the actual cost to repair or replace it. This type of home insurance is the cheapest available, but leaves you the most vulnerable if something happens.

On the other hand, guaranteed replacement coverage ensures that you’ll be able to rebuild you home and replace all the things you owned if your property was destroyed. While this is the most expensive type of Nebraska home insurance, the difference in cost compared to the coverage you receive could easily make it worth the extra few hundred dollars each year.

Buying the Right Amount of Nebraska Home Insurance

Most insurance companies have formulas which help determine the current value of your home and property, which is a great starting point to determine how much coverage to buy. Most insurance companies insist that you purchase coverage of at least 80% of the home’s value. If you have a mortgage, the lender will usually require full coverage.

It’s still your job to make sure this amount is enough, so:

1. Pay attention to the prices of similar homes that have sold in your neighborhood. Is your policy limit comparable?
2. Keep track of any major changes in building codes. Any repairs will be required to meet the latest codes, but it’s possible your policy hasn’t accounted for them.
3. Are there any special features or upgrades which have increased the value of your home? Make sure the policy limits are high enough to accommodate this.

Things to Know About Home Insurance in Nebraska

No insurance policy covers everything. That’s why it’s important to know:

• Most policies don’t cover backed up sewers or drains, so if that’s common in your area, make sure to add this coverage.
• Other Structures – if you have tool sheds, a detached garage, or green house on your property, make sure they are included in the policy.
• Home insurance will not pay to repair damage resulting from deterioration or neglect.
• Flooding is not covered in a home insurance policy. If flooding is a threat, insurance coverage is available through Floodsmart.gov.
• There are limits for specific items within the personal property section of each policy. If you have expensive items like antiques, computers, musical instruments, or valuable collections, purchase an additional rider for the extra coverage you need.
• Inflation can raise the cost of replacing a home. Ask about adding an inflation guard endorsement to the policy to make sure you’re protected against this.

Saving Money on Nebraska Homeowners Insurance

There are several things you can do to lower the cost of your home insurance premiums, such as:

• Increasing the deductible - most policies include a standard $250 deductible. Raising that to $500 or even $1000 can make a huge difference, if you can afford it.
• Combining policies – buying both home and auto insurance policies from the same company can save about 10-15% off both policies.
• Safety Discounts – adding smoke detectors, fire extinguishers and deadbolt locks to your home makes you eligible for special discounts.
• Claims History – If you have a history of claims, your rates will be higher. Absorb small claims if possible.
• Create a Personal Inventory – Make a list of all the property you own, either written or video. That way if you need to remember just what you had it will be easy to check the list. Include purchase dates too.
• Comparison Shop – Each insurance company sets rates based on their experience in the area, so make sure to get several quotes to find the best deal.

More ideas on lowering the cost of home insurance are available in our Home Insurance Shopping Tips Guide.

Additional Information on Nebraska Home Insurance

Contact the Nebraska Department of Insurance, 941 “O” Street, Suite 400, Lincoln, NE 68508, or call their consumer hotline at 877-564-7323.

Shopping for Nebraska Home Insurance

Now that you know what types of policies are available, how much coverage to buy, and ways to save, it’s time to start shopping for Nebraska home insurance. Thanks to the internet, this part is pretty easy. Start by entering your zip code in the box below. You’ll instantly be matched to top Nebraska homeowners insurance companies selling policies in your area. Choose the three that sound best to you and request a free quote. In no time you’ll have the best deal and can rest assured that you have the coverage you need at the best price. Don’t wait – enter your zip code now!