Nebraska Homeowners Pay Some of the Highest Insurance Costs In The Country

Nebraska homeowners are facing some of the highest insurance premiums in the Midwest, reflecting the state’s exposure to severe weather.

While insurance affordability remains manageable in some neighboring states, new data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report show that Nebraska stands out for elevated costs tied to hail, tornadoes, and storms.

Nebraska’s Insurance Costs in Context

According to the American Community Survey (ACS) data from the U.S. Census Bureau , Nebraska homeowners with a mortgage typically pay $2,000–$2,499 annually for homeowners insurance, while those without a mortgage average $1,500–$1,999. Overall statewide costs also fall into the $2,000–$2,499 range.

Lenders often require a policy to carry a mortgage, despite these homeowners also carrying the highest median costs. In seven states—Colorado, Nebraska, Texas, Florida, Kansas, Oklahoma, and Louisiana—policyholders with a mortgage can expect a median annual insurance premium of $2,000 to $2,499, while the highest median costs for those without a mortgage was just $1,500 to $1,999.

Nebraska has 549,417 insured homeowner households in total—317,524 with a mortgage and 231,893 without. Among mortgaged owners, 30,170 pay less than $100 annually and 42,258 pay $4,000 or more. Among those without a mortgage, 40,222 pay less than $100 and 27,195 pay $4,000 or more.

When compared with nearby states, Nebraska ranks among the most expensive. Kansas and Oklahoma homeowners with a mortgage also average $2,000–$2,499, with many reporting premiums over $4,000. By contrast, Iowa and Missouri are more affordable, with mortgaged households typically paying $1,000–$1,499 and $1,500–$1,999, respectively. Colorado also averages $2,000–$2,499, keeping Nebraska in line with its Tornado Alley neighbors but far above its northern peers.

Climate Risks Across the Region

The Realtor.com 2025 Climate Risk Report highlights how coastal states dominate the list of metros with the steepest insurance burdens. Miami, FL leads the country, with homeowners paying an average of $22,718 annually, equal to 3.7% of home value. Other Florida metros like Cape Coral, Tampa, and Sarasota also appear among the most expensive.

Though Nebraska does not appear on the report’s list of metros with the highest flood, hurricane, or wildfire risks, as part of Tornado Alley, it is exposed to frequent hailstorms, tornadoes, and damaging winds.

These recurring events drive up claims and explain why Nebraska’s premiums are among the highest in the Midwest, even without coastal or wildfire exposures.

A National Affordability Challenge

Nebraska’s rising premiums fit into a broader national struggle with affordability. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already faced challenges renewing or obtaining coverage.

These affordability pressures are changing housing decisions. Nearly 30% of buyers said they had completely changed the geographic areas they were searching because of insurance concerns, while another quarter said they had overhauled their buying strategies altogether. Even more alarming, 58% of homeowners nationwide said they would consider dropping insurance if premiums rose too high, with younger buyers especially likely to do so.

For Nebraska homeowners, insurance costs already rank among the highest in the Midwest. With climate risks intensifying and severe storms becoming more frequent, affordability pressures are likely to grow, keeping premiums a central issue for households across the state

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.