Here we go again— hail season and soaring insurance costs

As Nebraskans brace for another season of hail, wind, and sirens in the night, we find ourselves asking a now-familiar question: why does it cost so much just to stay protected?

A new report from LendingTree confirms what too many Nebraska homeowners already know: we are paying a disproportionate share of our income to insure our homes. Averaging 5.73% of household income, Nebraska ranks second in the nation—behind only Oklahoma—in the percentage of income that goes toward home insurance.

To put that in perspective, Hawaiians—yes, residents of an island chain that includes active volcanoes—spend just 0.48% of their income on home insurance. Californians, who regularly contend with wildfires and earthquakes, pay less than 1%. Even Washington, D.C., where a rowhouse can cost over $1 million, devotes just a fraction of the income Nebraskans do to insuring their homes.

We understand that living in Tornado Alley comes with risk. We don’t expect to pay the same rates as someone living on a mild coastal bluff with no history of weather-related catastrophes. But we also shouldn’t be footing the steepest insurance bills in the country simply because of our ZIP code—especially when the people in other high-risk states are not being asked to do the same.

This year, Nebraska saw the single largest jump in the nation in terms of income share spent on home insurance—a staggering 19.9% increase from 2023 to 2024. It’s a trend that can’t continue without serious consequences for working families and rural homeowners alike.

Yes, storms are getting worse. Yes, inflation is driving up construction costs. But the fundamental issue lies not only with the weather, but with the regulatory environment that allows insurance companies to simply shift the full burden onto consumers without considering more creative solutions. Insurance companies must justify their rate increases—but in too many cases, regulators simply sign off. That rubber-stamp mentality is costing Nebraskans dearly.

The Nebraska Legislature and Public Service Commission should take a hard look at what is driving these increases and whether the companies entrusted with this essential protection are making an effort to control costs. Other states have adopted reforms that give consumers more transparency, more options, and more regulatory oversight. We would do well to study those models and ask whether our current system truly serves the public interest.

Let’s be clear: this is not about denying insurance companies the right to cover their costs. It’s about ensuring those costs are justified, equitable, and not wildly out of line with what’s being charged in similarly risky parts of the country.

Severe weather will always be a fact of life on the Plains, but watching the sky for funnel clouds shouldn’t mean emptying our wallets year after year. The time to act is before another wave of increases hits—and while Nebraskans can still afford to rebuild when the storm passes.