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Omaha homeowners insurance costs, on average, $2,875 per year for $250K in dwelling coverage. This is just a few dollars more than the Nebraska average, which sits at $2,849 for the same coverage. With high average premiums for home insurance, Nebraska homeowners may find shopping around for cheap rates worth the effort.
According to Bankrate’s research, American Family, Nationwide and State Farm offer some of the cheapest rates for Omaha homeowners insurance. These carriers’ average rates come in below the city average which may help homeowners get the coverage they need at a price they can afford.
Best cheap home insurance companies in Omaha
The three cheapest home insurance companies in Omaha include American Family, Nationwide and State Farm, according to data collected from Quadrant Information Services. Along with average rates and third-party customer service rankings from the 2022 J.D. Power Home Insurance Study, Bankrate utilizes various criteria to create each carrier’s Bankrate Score. The Score, based on a 5-point scale, evaluates coverage options, available discounts, mobile and online accessibility and financial strength.
|Home insurance company||Bankrate Score||Average annual premium for $250K dwelling coverage||J.D. Power score|
American Family offers one of the cheapest average premium on our list with an average rate of $1,569 a year. The company stands out with one of the highest J.D. Power scores in the industry. In addition to offering standard homeowners insurance policies, American Family customers can also purchase additional coverages such as equipment breakdown coverage, matching siding protection and sump pump/water backup coverage. The carrier has few discounts compared to competitors, but with its already low rates, discounts may not be as important when insuring with AmFam.
Learn more: American Family Insurance Review
In addition to the standard home insurance coverage types, Nationwide offers endorsements to customize your policy, like replacement cost on dwelling and contents, earthquake insurance, flood insurance and Valuables Plus coverage for high-value items. Mobile users may also get 24/7 access and support to pay bills and view policy documents. The company also has a few discounts that may help policyholders save, such as living in a gated community, having smart home technology and installing protective devices. This carrier does fall below the average score for customer satisfaction from J.D. Power.
Learn more: Nationwide Insurance review
More homeowners choose State Farm than any other insurance company in the U.S. It has strong customer service ratings and offers a variety of optional coverage add-ons including replacement cost condition coverage and an inflation guard rider. State Farm offers a substantial bundling discount for bundling home and auto policies, but only offers roofing and home security as its other discount options, which is fairly limited when compared to other providers on this list.
Learn more: State Farm Insurance review
Although Allstate is not the cheapest carrier on our list, it has one of the more extensive lists of discounts homeowners may be able to use to lower their premium. Potential discounts may be available for buying a new home, installing a new roof, installing anti-theft and anti-fire devices and paying in full. The carrier also has an extensive list of add-on coverages to customize your policy including coverage for water backup, sports, equipment, electronic data recovery and business property. Allstate did score below average in J.D. Power’s Home Insurance Survey, indicating that some customers may not be satisfied with the level of service.
Learn more: Allstate Insurance review
Travelers offers a few ways to tailor your home insurance to your needs, with optional endorsements such as water backup and sump pump coverage, identity fraud coverage, and jewelry and valuable items coverage. With average rates higher than the Omaha average, those considering Travelers may want to utilize its potential discounts. These include loss-free discount, new home buyer discount, green home discount, protective device discount and a multi-policy discount. Customers should note that Travelers received a below-average customer satisfaction score from J.D. Power.
Learn more: Travelers Insurance review
Home insurance coverage options in Omaha
You’re not legally required to have home insurance, but your lender will likely mandate it as part of the conditions of your loan. Even if your home is paid in full, homeowners insurance may provide financial protection against covered perils, so you may find it worth the cost. In addition to standard home insurance, you could also consider the following coverage options when purchasing home insurance.
- Flood insurance: Many carriers in Omaha participate in the National Flood Insurance Program (NFIP), which offers flood insurance coverage for flood losses, which are not covered by your standard home insurance policy.
- Sump pump and water backup coverage: This endorsement may provide financial protection should your home be damaged by waters that back up from plumbing.
- Replacement cost coverage: Replacement cost coverage provides additional coverage on top of your dwelling coverage based on the amount it would actually cost to replace an item or rebuild your home in a covered event.
Home insurance discounts in Omaha
One way to get cheaper homeowners insurance may be to add discounts to your policy. Most insurance companies offer some discount opportunities which may be stacked together to help you maximize savings. You may consider looking for these discounts when comparing quotes in Nebraska and other states:
- Bundling discounts: The home and auto bundle is often the largest single discount you can get. By insuring both home and auto with the same carrier, you might earn a discount on your auto premium.
- Payment discounts: Making payments on time and in full is another great way to save on home insurance. If you can’t pay your yearly premium in full, signing up for automatic monthly payments may also earn you a discount.
- New roof discounts: Replacing your roof, especially with more durable materials, may score you a discount on your home insurance. It may be helpful to consult your insurance agent when making updates to your home to see where you could earn a potential discount.
Bundling discounts typically save policyholders the most, but rates and discounts may vary by provider. Your insurance agent may be able to provide more details on the most effective ways for you to save.