Insuring a house in Nebraska is twice as expensive as the national average, according to Insurify.

“Nebraska is a pretty example of the region,” said Chase Gardner, Insurify’s head of data research. “The typical US homeowner is going to pay something like $1,800 for an insurance policy and residents in Nebraska are paying over $3,500 on average.”

The situation has many local insurance officials searching for answers.

“I’ve been in this industry for 33 years and I have never seen it as challenged as it is right now,” said Mark Walz, chairman, president and CEO of Lincoln-based Farmers Mutual of Nebraska.

The company has lost money in back-to-back years after paying out more than $1 billion in total loss claims in 2022 and 2023.

Walz cited an industry report by ratings agency AM Best, which released its most recent market segment report this week.

AM Best listed weather, reinsurance behaviors and the rising costs for repairs — caused by inflation — as the reasons for the spike in homeowner insurance rates nationwide — and more specifically, in Nebraska.

“In addition to these headwinds, lingering challenges such as litigation financing and social inflation have yet to be resolved,” the report stated. “Insurers also faced persistent inflationary pressures and were in dire need of rate relief to offset elevated loss costs, supply chain disruptions, and rising commodity and labor costs.”

According to the American Agents Alliance, a trade organization for independent insurance agents and brokers, the cost of labor and construction materials has increased nearly 50% since 2020.

The rising cost to replace roofs and other damage caused by hail storms only adds to the