Sponsor seeks 10% annual cap or review on homeowner premium hikes amid affordability concerns

Senator Makayla Cavanagh told the committee that homeowners insurance premiums in Nebraska have surged and that sudden spikes can destabilize household budgets, especially for seniors and first‑time buyers. LB1035 would impose a 10% year‑over‑year cap on homeowners premium increases or, as an alternative amendment, require a pre‑implementation review by the Department of Insurance when increases exceed 10%.

Insurers and trade associations testified in opposition, presenting loss‑ratio data and arguing caps do not address the root causes — such as increased frequency and severity of wind and hail claims, reinsurance costs, and inflation — and would likely lead insurers to reduce capacity or cancel policies. Committee members discussed whether review thresholds, transparency measures, or targeted interventions could balance consumer protection with market stability.