April 2, 2026
This piece is sponsored by Marsh McLennan Agency.
Midwesterners are facing a changing insurance landscape in 2026 shaped by severe weather, rising costs, legal challenges and growing digital risks. For homeowners and drivers, understanding these shifts is essential to protecting your property, your vehicle and your peace of mind.
Severe weather remains a major factor across the Midwest. The region regularly experiences convective storms — tornadoes, hail and strong winds — that can cause significant damage. Last year was particularly challenging with hailstorms striking areas beyond the traditional storm alley and tornadoes breaking records in parts of the Midwest, including North Dakota. These events have led to a surge in insurance claims, pushing homeowners’ premiums higher, especially in Nebraska, Kansas and Missouri. Nebraska, in particular, ranks among the most expensive states for home insurance because of its frequent severe storms.
But it’s not just the storms driving up costs. Rising rebuilding expenses and insurer adjustments mean many policies now include wind and hail deductibles, increasing out-of-pocket costs for homeowners and drivers throughout the Midwest. Simple precautions — like parking vehicles indoors during storms and investing in durable roofing materials — can help reduce risk.
“With the continued changes insurance carriers are making to how roofs are covered with wind and hail deductibles, moving to an actual cash value or roof schedule payment and cosmetic damage exclusions, there has never been a more important time than now to review your homeowner’s policy to determine how your roof will be covered at a time of loss,” said Austin Herting, a private client adviser with Marsh McLennan Agency.
When it comes to auto insurance, South Dakotans and North Dakotans enjoy some of the most affordable rates in the country. States like Iowa, Indiana and Nebraska also consistently rank among the cheapest for drivers. However, inflation, weather-related claims and traffic congestion in more populated areas continue to put upward pressure on premiums. Michigan remains an outlier with some of the highest rates, though recent reforms are beginning to ease the burden.
Liability risks are also on the rise for personal lines insurance. Large jury awards — sometimes called “nuclear verdicts” — are becoming more common, particularly in Missouri and Minnesota. These high-dollar verdicts are driving up liability insurance costs, making umbrella coverage increasingly important for protecting your personal assets across the Midwest.
Cybersecurity risks are another growing concern. Last year, cyberattacks and data breaches affected residents and organizations across the Midwest, highlighting the importance of protecting your personal information and reviewing your cyber-risk exposure.
On the regulatory front, several Midwest states are updating insurance laws to better protect consumers and modernize oversight. North Dakota’s Senate recently passed a bill that modernizes insurance requirements and clarifies how surplus lines policies are handled. Other states such as Illinois capped fire insurance premium increases, while Kansas is rolling out an online auto insurance verification system, and Minnesota is cracking down on insurance fraud. Additionally, Iowa and Missouri have introduced rules around car-sharing and distracted driving.
So what can homeowners and drivers do to stay ahead? Experts recommend proactive steps like trimming trees, upgrading roofs, adopting smart-home safety devices and considering flood insurance — even if you’re outside a high-risk flood zone. Protecting your personal data from cyberthreats is also critical, no matter where you live in the Midwest.
To better understand these risks and learn how to safeguard your home and vehicle, explore this detailed Marsh McLennan Agency article.
Insurance in the Midwest is changing, but with the right preparation, you can move forward with confidence. Regular insurance reviews and working with trusted advisers who understand the unique risks of your region are key to staying protected.
At Marsh McLennan Agency Private Client Services, we’re committed to guiding you through these challenges and helping you find the right coverage to protect your home, vehicle and peace of mind.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.