When the storm is the system

Many news reports in the past week or so have adeptly pointed out that for homeowners across Nebraska, property insurance premiums aren’t just creeping up—they’re surging. It’s not hard to see why. Nebraska sits in the center of what meteorologists call “Hail Alley,” a stretch of the country that sees some of the most frequent and damaging storms in North America. The storms bring real destruction, especially to roofs, and insurers, hit with year after year of claims, are responding in the only way the current system allows: by raising rates or walking away.

One of the more alarming developments in recent years is the quiet retreat of insurers from the Nebraska market. Some are declining to write new homeowners’ policies. Others are choosing not to renew existing ones. Carriers that do stay are often limiting roof coverage or increasing deductibles tied specifically to wind and hail. Insurer withdrawal and reduced competition results in fewer choices and higher prices—plain and simple.

Rising construction costs and persistent labor shortages mean even moderate damage can be expensive to repair. A smaller roofing workforce and supply chain disruptions have pushed average claim costs up. Insurers are not just pricing risk—they’re pricing the cost of rebuilding, and that cost keeps climbing.

We can’t legislate the weather. But the risk it creates for homeowners is being amplified by forces we might have more control over.

Other states facing their own forms of climate and disaster pressure haven’t stood idle. Florida, for instance, created Citizens Property Insurance Corporation, a state-backed option for homeowners who can no longer find affordable coverage in the private market. It’s not perfect—Citizens is now the largest insurer in Florida—but it keeps people insured. The state also launched My Safe Florida Home, a grant program to help residents harden their homes against windstorms, reducing future claims.

Texas developed a windstorm insurance association for coastal counties, while California runs a FAIR Plan for homeowners shut out of the fire-prone private market. Alabama offers grants for roof upgrades that meet stringent wind-resistance standards. These are real responses to systemic risk—some run by governments, some funded by insurers, all designed to keep the insurance ecosystem functioning.

Are these comparable to the National Flood Insurance Program? In structure, not exactly. But in spirit—yes. Like the NFIP, they recognize that certain perils are so geographically concentrated and economically destabilizing that public or pooled solutions are necessary.

Could Nebraska follow suit? Certainly. We need not assume, however, that a taxpayer-funded safety net is the only option. Private-sector creativity might hold part of the answer, whether in the form of risk pools, cooperative models, or supplemental insurance products that specifically cover roof damage, offering a buffer between homeowners and major claims.

What’s clear is that Nebraska can no longer afford to treat this as a temporary surge. It’s a structural shift. If we want to keep our homes insured—and provide affordability for young families and first-time buyers—we’ll need to think out of the box and address a structure that no longer serves us effectively.