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Owning property in the Cornhusker State can be a great thing for your investment portfolio. Adding real estate can bring in a passive income, but there are also risks to consider. Though you're thinking of all the rent money you'll get, you are also responsible for any accidents, maintenance, and repairs. Likewise, Nebraska often sees snow, hail, thunderstorms, and tornadoes, so it's wise to protect yourself.

Is homeowners insurance required in Nebraska for landlords and property managers? Technically, Nebraska law doesn't require you to have a homeowners insurance policy, but it's still wise to protect your investment. One way to do that is with home insurance.

There are many options for homeowners insurance in Nebraska, and it's crucial to choose the best one for your needs. This means focusing on reasonable prices and quick claims processing.

We created this guide to help you find the best cheap home insurance for your needs. This includes tips for choosing a company and the top options. Let's dive in!

Understanding Nebraska Homeowners Insurance

What is homeowners insurance in Nebraska? This coverage is your safety net against unforeseen problems. It can include property damage from storms and liability coverage for accidents that occur in or around the rental.

Overall, home insurance is a great solution, but it may not be enough for your needs. We'll discuss this later.

Average Home Insurance Costs in Nebraska

The average annual cost of homeowners insurance in Nebraska is about $2,951/year, with a dwelling coverage of $250,000. When you compare that to the national average of $1,428, you see a huge spike.

Why are home insurance rates in Nebraska much higher than the national average? Most experts agree it's because of the tornado risk.

Typically, home insurance is higher for states located in Tornado Alley, and Nebraska is part of that. Likewise, the state sees extreme weather in winter and various wildfires.

Nearby states also have higher-than-average home insurance rates for similar amounts of dwelling coverage. For example, Kansas homeowners pay $3,083, and Oklahoma homeowners spend $3,659.

Homeowners Insurance vs. Landlord Insurance

As a property manager or landlord, it's up to you to know the difference between landlord and homeowners insurance in Nebraska. Let's focus more on this.

Home insurance will protect your personal belongings and the home itself. Therefore, it might not be comprehensive when you're renting the property.

Alternatively, landlord insurance offers specialized coverage. It will extend protection to the potential loss of rent you might deal with after a tenant moves out. Likewise, you'll generally have more liability for accidents involving guests and tenants.

Choosing the best insurance type will protect you against the risks you face as a landlord. Therefore, it's wise to read the terms and conditions for each policy. Let the insurer know that you're a property manager or landlord, being transparent about your intentions and needs. The agent can often help you find appropriate coverage.

Do you need landlord or homeowners insurance? Check out the scenarios below to determine when home insurance might be beneficial:

  • Temporary Absence - You might live on the property but choose to rent it while you're gone on vacation. You'll return and continue living there, so homeowners insurance could be helpful. Make sure the insurance provider understands this so that you get appropriate coverage while you're gone.
  • Home Sharing - Home sharing happens when you rent a portion of your residence to another party. This could be an entire floor or one room. Regardless, many homeowners insurance policies offer specific coverage for this situation, but you have to ensure it meets your needs. Remember that this coverage likely won't cover loss of rental income, so you might also require landlord insurance.
  • Vacant Property - Homeowners insurance can be helpful when you own a currently empty property that's generally rented to tenants. It will cover your personal belongings and property. Just make sure you tell the insurer that it's a vacant rental because it might offer other products that will better meet your needs.
  • Transition Periods - You may own a property and live there now, but you hope to turn it into a rental. During the transitional period, homeowners insurance could be helpful.

How to Choose a Nebraska Homeowners Insurance Company

When you decide to get Nebraska homeowners insurance for your rental property, it's crucial to choose the best policy. Here are a few tips to help you:

Unique Policy Needs for Nebraska Homeowners Insurance

Home insurance in Nebraska is confusing to most because there are unique hazards the state sees. Therefore, you might need additional coverage options, such as flood insurance. Let's take a closer look at what you could face:

Flood Coverage (National Flood Insurance Program and Others)

Flooding isn't common for Nebraska homeowners, but areas around the river basins could experience it. Likewise, extreme weather is more prominent now, so you could face serious damage.

Typical policies don't cover flood damage. Therefore, you might have to purchase flood insurance separately.

It's possible to visit the flood maps website from the Federal Emergency Management Agency. This will help you determine if you're at risk and by how much. Even so, you might want to buy it for peace of mind.

Tornadoes

Nebraska sees about 35 tornadoes each year, and these powerful storms can be significantly damaging to houses in the area. The wind can break windows and hurt roofs. However, your home insurance in Nebraska should cover these damages. It's important to note that some policies have separate deductibles for wind and hail.

Hail and Thunderstorms

Severe thunderstorms are common in the spring months, but they often pop up at other times. Hail often accompanies them, which can cause damage to windows, roofs, siding, and more.

Most home insurance companies in Nebraska cover these things, so you won't have to get separate coverage. However, there could be a hail deductible, so read your policy to be sure.

Freezing Temperatures and Winter Storms

The Nebraska winters can bring up to 40 inches of snow, and the wind chills can be quite dangerous. However, most damage you'll face from a winter storm is covered with a standard policy.

Still, many home insurance companies in Nebraska will require you to have extra coverage. For example, if snowmelt caused flood damage, you might need flood insurance.

Other Factors to Consider When Assessing Nebraska Home Insurance Companies

When choosing between the many home insurance companies in Nebraska, it's crucial to follow the steps listed below to find the right option:

  1. Appropriate Coverage - Make sure that the home insurance in Nebraska offers appropriate coverage for your needs. This might mean getting endorsements or riders that cost extra, but it will ensure you're protected from any potential risk.
  2. Focus on Customer Satisfaction - It's challenging to check customer service reputations from all the providers on this list. However, it's essential because you want to make sure someone will help you file a claim quickly.
  3. Compare Quotes - You shouldn't go with the first company you find online. Instead, you should read about each one and request a quote. This will tell you exactly what you need. In most cases, it's wise to talk to a live agent because they can advise you on your options.
  4. Financial Strength - You should know the financial strength of each insurer before deciding. The goal is to ensure it can pay claims fast. Typically, large companies are stronger financially.
  5. Consider the Price - Cheap home insurance companies aren't always the best solution. Though you don't want to overpay, you must ensure you have adequate coverage for your needs. Therefore, look beyond the price to focus on what you get (value for money).

Best Homeowners Insurance Companies in Nebraska

Now that you know the unique policy requirements you have, it's time to focus on the best home insurance companies available. Let's look at them now!

1. Farm Bureau

Farm Bureau

Farm Bureau is an excellent option and offers affordable home insurance in Nebraska, as well as other products. You'll appreciate the good customer service, which will help you understand your homeowners insurance policy and make claims when necessary.

Coverage and Features

When you choose Farm Bureau for Nebraska home insurance, the standard policy covers the structure of the house, personal belongings, and certain living expenses when an event forces you away from the home. Likewise, liability coverage is included.

There aren't many additional coverage options available, but there are some important ones to note:

  • Personal Property Coverage - This covers your high-value items, such as electronics, cameras, and jewelry.
  • Replacement Cost Coverage - This could pay up to 125 percent of the coverage limit if the house suffers a lot of damage.
  • Equipment Breakdown Coverage - This covers appliances like the air conditioner, electrical systems, furnace, water heater, and TV.
  • Umbrella Insurance - This boosts liability protection in case someone gets hurt on the property.

Discounts for Home and Auto Insurance and More

Buying home insurance in Nebraska from Farm Bureau can save you money. It offers standard discounts, which will lower your rates. The options include:

  • Farm Bureau Member Choice discount
  • Continued in-force credit
  • New home discount
  • New roof discount
  • Protective device discount
  • One deductible discount

2. American Family

 American Family

Though you won't find the cheapest home insurance in Nebraska at American Family, it is a great choice because it offers customizable policies and add-on coverages. This could be worth the higher price!

Coverage and Features

You'll find standard options for home insurance from American Family, such as dwelling coverage, medical payments, personal property, and personal liability.

However, you have customizable coverage options, as well. These include:

  • Matching Siding Protection - You can replace your undamaged siding to match your new siding.
  • Hidden Water Damage - This covers repairs from a water leak you didn't know about, such as in the wall, cabinet, ceiling, or elsewhere.
  • Equipment Breakdown Coverage - This covers your home systems if they're damaged from pressure systems breakdowns, mechanical problems, and electrical issues.

You'll also find sump pump and sewer backup overflow coverage, protection from identity theft, and service line coverage.

Discounts

It's easy to save money when you get auto insurance coverage along with homeowners insurance. Here are a few other discounts:

  • Autopay discount
  • Renovated home discount
  • Age of home discount
  • Safe, smart, secure home discount

3. Nationwide

Nationwide

While it might not be the cheapest home insurance in Nebraska, Nationwide offers excellent coverage options. You'll get protection for medical payments, personal liability, and the structure. Likewise, it features assistance for credit card fraud as standard.

Coverage and Features

If you're interested in additional home insurance options, Nationwide has you covered. Here are the choices:

  • Water Backup Coverage - This pays for damage from water backups through the sump pump, drain, or sewer.
  • Valuables Plus - You'll get more coverage for high-value items, including antiques, jewelry, and fine art.
  • Service Line Coverage - This pays for damages to the exterior and underground service lines.
  • Identity Theft Coverage - Protect your personal information from online hackers and thieves.
  • Flood Insurance - This pays for flood damage.
  • Equipment Breakdown - This replaces or repairs the appliances and electronics after a power surge or mechanical breakdown.
  • Earthquake Insurance - This will cover earth movement damages.
  • Dwelling Replacement Cost - This pays about 20 percent more than the dwelling coverage limit when your home must be rebuilt because of a covered loss.
  • Brand New Belongings - This upgrades your coverage for personal property to replacement cost, allowing you to get new items.
  • Better Roof Replacement - You can rebuild your roof using safer and stronger materials after a covered event.

Discounts

Your discounts from Nationwide include:

  • Multipolicy discount when you get home and auto insurance coverage
  • Claims-free discount
  • Protective device discount
  • Gated community discount
  • Home renovation credit
  • Prior insurance discount
  • Home purchase discount
  • Roof rating discount

4. Allstate

Allstate

Allstate is actually the largest insurance company in the United States. Though it might not offer the cheapest home insurance, you'll find many options. Overall, Allstate received many glowing reviews.

Coverage and Features

This home insurance company offers standard coverage options like other providers, which include additional living expenses, liability, personal property, dwelling, and medical protection coverage.

Extra coverages can include:

  • Business property
  • High-value belongings
  • Electronic data recovery
  • Identity protection
  • Green improvement reimbursement
  • Yard and garden
  • Water backup
  • Sports equipment
  • Short-term rental insurance
  • Musical instruments

Discounts

Discounts can include:

  • Multipolicy discount when you bundle home and auto insurance coverage
  • Welcome discount
  • Claims-free discount
  • Automatic payments
  • Loyalty discount
  • Safety discount
  • Homebuyer discount
  • Responsible payment discount
  • Early renewal discount
  • Deductible rewards
  • Claim RateGuard

5. State Farm

State Farm

State Farm typically doesn't offer the cheapest home insurance rates, but it's a great choice when you want variety and tons of insurance products. Plus, it provides more discounts than other brands.

Coverage and Features

With this Nebraska home insurance company, you have the traditional coverage options most insurers offer, such as medical payments, dwelling coverage, and personal liability. However, there are additional coverages available, such as:

  • Identity theft protection
  • Service line coverage
  • Home systems protection
  • Water backup coverage

There's also the Premier Service Program, which helps you find contractors for water removal, floor repairs, and much more.

Discounts

Buying home insurance in Nebraska can be expensive, and State Farm offers these discounts:

  • Multipolicy discount when bundling home and auto insurance
  • Home security discount
  • Roofing materials discount
  • Many others

Other Notable Nebraska Home Insurance Companies

We realize you want the best home insurance companies in Nebraska, and the five listed above are excellent. However, here are a few other options to consider when researching:

  • USAA (only available to military service members and their families)
  • Travelers
  • Liberty Mutual

Conclusion

Owning real estate can be beneficial for many reasons. However, you have to think about the risks, which is why it's wise to research the home insurance companies in Nebraska listed above and get multiple quotes.

Is homeowners insurance required in Nebraska? No. However, it can give you peace of mind and protect your investment. Just remember to customize it to your needs and look beyond those standard homeowners insurance policies, especially if you're the property manager or landlord.

David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!

Legal Disclaimer

The information on this website is from public sources, for informational purposes only and not intended for legal or accounting advice. DoorLoop does not guarantee its accuracy and is not liable for any damages or inaccuracies.

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