Roofing Insurance Laws in Nebraska

Informational only — not legal advice. Laws and case precedent change, and outcomes depend on your specific policy language. Verify current law with your state Department of Insurance or a qualified attorney before relying on it.

Can insurers depreciate labor when calculating ACV?

Permitted

Nebraska permits carriers to depreciate labor when calculating actual cash value. The Nebraska Supreme Court held that "actual cash value" is unambiguous and that labor may be depreciated even when the policy never defines ACV or depreciation and never says labor will be depreciated. Expect labor depreciation on ACV payments and recover it through the recoverable depreciation holdback, not by arguing the policy is silent.

Authority

Henn v. American Family Mutual Insurance Co., 295 Neb. 859, 894 N.W.2d 179 (2017), answering a certified question from the U.S. District Court for the District of Nebraska (docket S-16-597).

Henn v. American Family Mutual Insurance Co., 295 Neb. 859 (2017) — Justia (Nebraska Supreme Court) · Henn v. American Family Mutual Insurance Company — Nebraska Judicial Branch case-call page (docket S-16-0597, certified question)

Must insurers replace undamaged materials so the repair matches?

Required

Nebraska requires matching by regulation. When replacement items do not reasonably match the undamaged material in quality, color, or size, the insurer must replace all items in the area to produce a reasonably uniform appearance, and the insured pays nothing beyond the deductible. On a roof or siding loss, that means the carrier owes enough of the surrounding undamaged area, up to a full slope or elevation, to reach a uniform appearance.

Authority

210 Neb. Admin. Code ch. 60, § 010.01(B), the Department of Insurance rule on standards for prompt, fair and equitable settlements applicable to fire and extended coverage type policies: "When a loss requires replacement of items and the replacement items do not reasonably match in quality, color or size, the insurer shall replace all items in the area so as to conform to a reasonably uniform appearance." The rule reaches interior and exterior losses alike and imposes no cost on the insured beyond any applicable deductible.

210 Neb. Admin. Code ch. 60, § 010 — full regulatory text (Cornell LII) · 210 Neb. Admin. Code ch. 60, § 010 — Standards for prompt, fair and equitable settlements (Justia, section-level) · Nebraska Rules and Regulations — official state portal (Secretary of State)

Can a contractor pay or waive the homeowner's deductible?

Prohibited

Nebraska bans deductible rebating outright. A residential contractor may not promise to rebate any portion of an insurance deductible as an inducement to the sale of goods or services, and the ban is written broadly enough to capture waiving, absorbing, discounting, or reimbursing it. Bill the price you actually charge, and offer financing or a payment plan if the homeowner cannot pay the deductible at once.

You may

Bill the carrier the price you actually charge
Offer a payment plan so the homeowner pays the deductible over time
Arrange third-party financing for the homeowner's out-of-pocket share
Collect the full deductible from the homeowner before or at completion
Include the signed 14-point deductible notice on every insurance-funded contract, estimate, or work order
Send that signed notice to the insurer

You may not

Promise to rebate any part of the deductible to win the job
Waive, absorb, or eat the deductible
Grant an allowance or discount against your fees to offset the deductible
Pay the insured or anyone associated with the property any compensation beyond an item of nominal value
Advertise "we cover your deductible" or "no out-of-pocket cost"
Inflate the estimate to the carrier to make up the deductible

Penalty: The statutory notice states that rebating a deductible violates Nebraska insurance law and may be punishable by civil or criminal penalties.

Authority

Neb. Rev. Stat. § 44-8604, part of the Insured Homeowners Protection Act (§§ 44-8601 to 44-8608), provides that a residential contractor shall not promise to rebate any portion of an insurance deductible as an inducement to the sale of goods or services. The same section defines the prohibited conduct to include granting any allowance or offering any discount against the fees to be charged, and paying the insured or anyone associated with the property any form of compensation except an item of nominal value. Neb. Rev. Stat. § 44-8607 requires any contract, repair estimate, or work order to be paid from insurance proceeds to carry a capitalized 14-point-type notice, signed by the insured, stating that rebating a deductible is a violation of Nebraska insurance law and may be punishable by civil or criminal penalties. Neb. Rev. Stat. § 44-8602 defines residential contractor to include one who contracts to repair or replace a roof system. No separate section bans the advertising as such, but a promise to rebate made as an inducement to the sale reaches the "we'll cover your deductible" pitch.

Neb. Rev. Stat. § 44-8604 (prohibited acts — deductible rebate) · Neb. Rev. Stat. § 44-8607 (required notice; civil/criminal penalties) · Neb. Rev. Stat. § 44-8601 (Insured Homeowners Protection Act — name) · Neb. Rev. Stat. § 44-8602 (Terms, defined — residential contractor, roof system)

Can a contractor negotiate the homeowner's claim?

Restricted

Nebraska requires a public adjuster license to negotiate or effect the settlement of a homeowner's claim, and there is no contractor exemption. You may prepare and submit your own estimate, scope, photos, and supplements and argue the line items, pricing, and scope of your own work with the adjuster; in fact the statute requires you to give both the homeowner and the insurer an itemized description of work, materials, labor, and fees before you start. Nebraska also allows a written post-loss assignment of policy rights or benefits to the contractor, which is the one lawful route to pursuing the homeowner's rights directly.

You may

Prepare and submit your estimate, scope, and photographs
Furnish the insured and the insurer an itemized description of work, materials, labor, and fees before starting
Submit supplements and defend the pricing of your own work
Meet the adjuster on site and answer questions about your estimate
Take a written post-loss assignment of rights or benefits, with the 14-point notice and five-business-day notice to the insurer
Be named copayee on the assignment

You may not

Negotiate or effect the settlement of the homeowner's claim for compensation
Advise the homeowner on the claim or on policy coverage generally
Advertise that you will handle, fight, or maximize their insurance claim
Solicit the business of investigating or adjusting losses
Accept a fee or commission for investigating or settling a claim without a license
Act as public adjuster and roofer on the same loss

Penalty: Administrative fine up to $1,000 per violation plus license action under § 44-9211(4); any Insured Homeowners Protection Act violation makes the contract with the homeowner void under § 44-8608.

Authority

Neb. Rev. Stat. § 44-9203(9) defines a public adjuster as anyone who, for compensation, acts for or aids an insured in negotiating for or effecting the settlement of a first-party property claim, advertises or holds out as a public adjuster of first-party claims, or directly or indirectly solicits the business of investigating or adjusting losses or advising an insured about first-party claims. Section 44-9204(1) requires a license. The exceptions at § 44-9204(4) cover attorneys acting professionally, life and health and annuity claims, persons employed only to obtain facts surrounding a loss or furnish technical assistance to a licensed public adjuster, licensed health care providers filing patient claim forms, and interinsurer subrogation. There is no roofing or general-contractor carve-out. Section 44-9218(2) bars an unlicensed person from accepting a commission, service fee, or other consideration for investigating or settling claims. On the contractor side, § 44-8606 requires the residential contractor to furnish the insured and the insurer an itemized description of work, materials, labor, and fees and the total amount agreed to be paid before commencing work, and that description does not limit identifying other goods and services necessary to complete repairs on a covered loss. Section 44-8605 permits a post-loss assignment of rights or benefits to a residential contractor, may name the contractor copayee, must be provided to the insurer within five business days of execution, must carry the capitalized 14-point notice stating the contractor is entitled to pursue the insured's rights and remedies under the policy, must not impair a listed mortgagee, and must not prevent the insurer from communicating with the named insured. Section 44-8602(1)(d) treats one who serves as representative, agent, or assignee of the property owner as a residential contractor. One qualification. You cannot be both the public adjuster and the roofer on the same loss: § 44-9204(3) bars an adjuster from soliciting or entering a repair agreement on property the adjuster is engaged to adjust, and § 44-9217(4), (6), and (10) bar a financial interest in any aspect of the claim, referrals to persons the adjuster has an interest in, and any contract or power of attorney vesting authority to choose who performs the repair work.

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