Lincoln, the capital of Nebraska and its second-largest city, has home insurance costs that are similar to Omaha but slightly lower. The average cost of home insurance in Lincoln is $1,680 per year, compared to the national average of $1,428. Severe weather, the age of homes, and the cost of repairs all play a role in determining home insurance premiums in Lincoln.
Local Factors Impacting Home Insurance Costs in Lincoln
Severe Weather: Lincoln experiences extreme weather conditions, including thunderstorms, tornadoes, and hail, which elevate home insurance rates.
Tornado Risk: Like Omaha, Lincoln is also located in Tornado Alley, where the frequency of tornadoes and strong winds increases the risk of property damage.
Older Homes: Many homes in Lincoln are older, which can lead to higher repair costs and higher insurance premiums.
Home Insurance Rates by Home Age in Lincoln
The age of your home in Lincoln can influence your insurance premiums. Older homes often require more repairs and maintenance, leading to higher costs.
Home Age
Average Annual Premium
0-10 years
$1,600
11-25 years
$1,680
26-50 years
$1,780
51+ years
$1,900
Home Insurance Rates by Credit Tier in Lincoln
Credit score is a significant factor when determining your home insurance premiums. Below is a breakdown of how credit scores affect home insurance rates in Lincoln:
Excellent Credit (750+): $1,600 per year
Good Credit (700-749): $1,720 per year
Fair Credit (650-699): $1,850 per year
Poor Credit (Below 650): $2,100 per year
Cheapest Home Insurance Providers in Lincoln
Several providers offer competitive home insurance rates in Lincoln. Here are some of the cheapest options:
Provider
Average Annual Premium
State Farm
$1,640
Allstate
$1,690
Liberty Mutual
$1,710
Farmers
$1,680
Home Insurance Rates by Deductible Amount in Lincoln
Increasing your deductible can help you save on monthly premiums, but it means paying more in the event of a claim. Here’s a look at how deductibles affect premiums in Lincoln:
$500 deductible: $1,830 per year
$1,000 deductible: $1,680 per year
$2,500 deductible: $1,540 per year
Types of Homeowners Insurance in Lincoln
HO-3: The most common homeowners policy, offering coverage for the home structure, personal property, and liability.
HO-5: A premium policy that offers more comprehensive coverage for both the home and personal belongings, particularly useful for higher-value homes.
HO-8: A policy designed for older homes, which provides more flexible coverage for repair and replacement.
Additional Coverage Options
Flood Insurance: Although Lincoln is less prone to flooding, homes near rivers or in low-lying areas should consider flood insurance.
Hail Insurance: Given Lincoln’s frequent hailstorms, adding hail damage coverage can protect your home from roof and siding damage.
Windstorm Insurance: Tornadoes and high winds are common in Lincoln, so windstorm coverage is an important add-on for homeowners.
Frequently Asked Questions (FAQs) about Home Insurance in Lincoln
Do I need tornado insurance in Lincoln? Tornado insurance is not a separate policy but is typically included in standard homeowners insurance. However, it’s crucial to ensure your policy covers tornado-related wind damage.
How does my home’s age affect insurance costs in Lincoln? Older homes tend to have higher premiums because they may need more repairs, and outdated systems can be more costly to replace.
Comparison of Home Insurance in Omaha vs. Lincoln
Omaha: $1,735 average annual premium
Lincoln: $1,680 average annual premium
Both Omaha and Lincoln face similar risks, including severe weather and tornadoes, but Omaha’s slightly larger population and more extreme weather patterns result in marginally higher premiums compared to Lincoln.
