Nebraska Home Owners Insurance Consumer Information & Homeowners Insurance Quotes

All of Nebraska is well aware of the perils posed by Hailstorms. It is a major threat for some states in the country and the degree and extent of damage it leaves in its wake differs greatly. Since the decade of 1980s United States has witnessed about 3,000 hailstorms annually, with 4 states representing 42 percent of the total. Of these Nebraska has a high 135.

Up to about 40 percent of all homeowners insurance claims in the state are an outcome of hailstorms. In addition to fresh claims being filed there are the increased numbers of repeat claims which involve payments being made to the same customers for the same kind of repairs resulting from the same forms of hailstorms.
While a hailstorm is usually limited to a certain geographical area in USA, there are parts of Nebraska where hailstorms strike at least 6 times a year if not more. Naturally, the same houses are exposed to the dangers of these storms so are more likely to be devastated.

Problem of rising rates

This has to a great extent ushered in the problem of rising rates for home insurance coverage in these regions which has resulted in home insurance policies gradually becoming expensive.

While insurance carriers look to contain the problem of future damage, Customers often look to lower their premiums by raising their deductibles. While this process reduces the insurance bill it also reduces the amount you can claim.

Keeping both parties happy

Perhaps a better method to keep both insurance carriers and customers happy would be to undertake both damage prevention and reduction. This would entail eradication of all cause of loss, which may not be controlled given the unpredictable tendencies of hailstorms while Reduction would entail minimizing damage when losses occurred.

Solutions

For minimizing damage during hailstorms, the Department of Insurance, Nebraska advises you to use roofing material, which offers better resistance to this peril. Technological breakthroughs and uniform testing offer you new materials, which can be expected to resist hailstorms more effectively.

Technology and testing

How do you know which is an impact-resistant material for roofing? What tests will provide credible information, which can influence purchase decisions? How much resistance do roofing materials lose as they age?

In 1996 a testing standard (UL 2218) was developed to rate the impact resistance of roofing materials. A combined effort by the State Farm-supported Institute for Business and Home Safety (IBHS) and Underwriters Laboratories, Inc. (UL) the test involved using four sizes of steel balls, ranging from one-and-one-quarter inches to two inches in diameter, replicating four sizes of hailstones. These balls are dropped from various heights to replicate various speeds of impact. Damage was measured on a scale of 1 (least resistant) to 4 (most resistant).

Researchers also conducted other experiments by shooting ice balls from a compressed-air gun and studying the physical properties of hail and associated wind and temperature characteristics.
Manufacturers were now encouraged to develop roofing, which could withstand impact of the hailstorms. It was expected that as materials became advanced and better they would be produced in mass quantities and this would lower prices thereby bringing down the insurance claims and stabilize premiums.

Nebraska Regulations for Homeowners Insurance

Under Nebraska’s regulations, each zone of the state is assigned a homeowners insurance discount for each of the four UL levels of impact resistance. Discounts are applicable to basic homeowners insurance policies and to those policies covering external structures and buildings only.

For a homeowner in the highest-rated hail zone replacing a roof with a Level 4 (highest resistance) material, the discount would be 35 percent. (Discounts may vary among companies.) A Nebraska homeowner in the lowest-rated hail zone using a Level 1 roof would receive a 1 percent discount on a homeowner’s policy or 3 percent on structure-only policies.

The main issue at the center of the storm here is Cost. No homeowner will replace an existing roof that is not damaged or worn. So when can he upgrade? When a house is being built and when it is under repair.
The costs incurred will depend on the product whether it is a standardized one or more impact resistant. And the added cost is borne by the consumer. In the case of damage caused by an insured loss, insurance policies do not pay for upgrades, only replacement (this applies to all repairs and replacements). Insurance pays to replace a roof with similar materials, but not upgraded materials. If more expensive materials are used, the policyholder pays the difference.

Roofing materials predominantly used are Asphalt shingles, Wood shingles, Tile, Slate, Metal and Synthetic. If there are new materials introduced in the market they will cost more, even in mass production. New shingles may also require more labor at installation. If they became widespread everyone could benefit. Homeowners would save money through discounts, and the hassle of recovering from storm damage would be reduced. That would keep premiums as low as possible for customers. Roofers will have fewer maintenance problems and customer complaints.

Conclusion