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What Is the Nebraska Insured Homeowners Protection Act?

Passed in 2012, the Insured Homeowners Protection Act (Neb. Rev. Stat. §§ 44-8601 to 44-8608) shields homeowners from unfair practices when hiring Omaha roofing contractors or others for repairs paid by property and casualty insurance. It applies to “residential contractors” working on homes (up to four-family units), covering tasks like hail damage roof repair, roof replacement, or cleanup (LB 943, Sec. 2). The Act sets rules to ensure transparency and fairness, especially after storms when you’re vulnerable to rushed decisions.

Key protections include your right to cancel a contract within three business days after signing or learning your insurance won’t cover the claim (LB 943, Sec. 3). Contractors must return any payments (minus costs for emergency work, like tarping) within ten days of cancellation. The Act also bans contractors from offering to waive or rebate your insurance deductible as a deal-sweetener—a practice that’s not only unethical but illegal (LB 943, Sec. 4; Neb. Rev. Stat. § 44-8607). Violators face civil or criminal penalties, protecting you from fraud.

The Act can be read at https://casetext.com/statute/revised-statutes-of-nebraska/chapter-44-insurance/article-86-insured-homeowners-protection-act/section-44-8607-notice-required.

Post-Loss Assignments: Validity and Rules

A post-loss assignment lets you transfer your insurance claim rights to a contractor, allowing them to deal directly with your insurer for payment—a common practice in storm damage restoration Omaha. The Act doesn’t ban these assignments but regulates them tightly to protect you. For an assignment to be valid, it must include specific language in 14-point, all-caps font, warning you that you’re giving up rights to pursue claims yourself. It must also clarify that the insurer only pays for covered damages, and you’re still responsible for your deductible (Neb. Rev. Stat. § 44-8605).

You must sign and date this disclosure, and the contractor must send a copy to your insurer within five business days. Without these steps, the assignment could be void, leaving you or the contractor in a legal bind. This matters because an invalid assignment might delay repairs or spark disputes over payment, costing you time and money. The Act ensures you understand what you’re signing, preventing contractors from overstepping.

Why This Matters for Homeowners

Understanding the Act is crucial for Omaha homeowners facing home roof repair after a storm. First, it gives you control. The three-day cancellation window lets you rethink a hasty contract signed under pressure—like when a storm chaser knocks after a hailstorm. Second, it guards against scams. Rebating deductibles might sound like a deal, but it’s illegal and could leave you liable if caught. The Act’s strict rules on assignments mean you won’t accidentally sign away rights without knowing, keeping you in the driver’s seat for Omaha home insurance claims.

Transparency is another perk. By requiring clear disclosures, the Act ensures contractors like Johnson Restoration explain terms upfront, avoiding surprises. Nebraska courts emphasized fair insurance practices, and this Act builds on that by protecting your claim process. Finally, it saves you from legal headaches. A valid assignment streamlines repairs, but a sloppy one could stall your claim, leaving your roof leaking longer or prone to additional damage.

Trust Johnson Restoration

Storms don’t wait, but bad contracts can make recovery tougher. The Nebraska Insured Homeowners Protection Act empowers you to choose a roofing contractor in Omaha wisely. At Johnson Restoration, we follow the Act to the letter, offering clear contracts, honest pricing, and expert storm damage repair Nebraska. Don’t let a storm—or a shady deal—derail your home’s safety. Schedule a free inspection online today, and let us restore your roof with trust and quality you can count on.