The homeowners forms, Coverages A through F, perils, exclusions and loss settlement are covered in the national Homeowners guide. This guide covers the Nebraska statutes and rules that govern homeowners and other property policies:

• the cancellation and nonrenewal law (Neb. Rev. Stat. 44-522)
• the valued policy law (44-501.02)
• the property claim standards in 210 NAC 60

Cancellation and nonrenewal (44-522)

Scope. Every property or liability policy filed in Nebraska must provide for cancellation by either party and nonrenewal by the insurer. The notice rules apply to policies and binders. They don't apply to:

• auto
• workers' comp
• growing crops
• coverage for a specified season or event

Notice periods

• A premium finance company canceling for nonpayment follows the same 10-day rule.
• A USPS certificate of mailing proves receipt on the third calendar day after the certificate date.

Allowed reasons after 60 days. Once a policy has been in effect more than 60 days, it may be canceled only for listed reasons, such as:

• nonpayment
• material misrepresentation
• a fraudulent claim by any insured
• violation of policy terms
• a substantial increase in the risk

Filing one legitimate claim isn't a reason to cancel.

Group transfers. Moving a policy to another company in the same group counts as a cancellation or nonrenewal only if the new coverage or rates are substantially less favorable.

The valued policy law (44-501.02)

• The rule. When real property in Nebraska is wholly destroyed by fire, tornado, windstorm, lightning or explosion, the amount of insurance in the policy is conclusively its value and the measure of damages.
• Limits. The law doesn't apply to flood or other perils, to contents, or to a loss caused by the insured's criminal fault.
• Contents in such a loss. Not trying in good faith to settle claims for personal property inside a building wholly destroyed by one of those perils is an unfair claims practice (44-1540(5)).

Property claim standards (210 NAC 60)

• ACV worksheet. When paying actual cash value, the insurer gives the insured a copy of the worksheet showing every deduction.
• Matching. If replacement items don't reasonably match, the insurer replaces all items in the area for a reasonably uniform appearance.
• Repair damage. Physical damage caused while making repairs is part of the loss, unless excluded.
• Nominal-value property. When payment is limited because the property has little or no market value, the insurer explains why in writing.
• Failure to exhibit property. A claim can't be denied for this unless the file documents a breach of the policy.
• Polygraphs and examinations under oath may be required only if the policy allows them and state law doesn't forbid them.
• Release language. A payment can't be called final unless the policy limit was paid or a compromise was agreed.
• Basic deadlines (in working days):
  • acknowledge a claim within 15 days
  • start the investigation within 15 days
  • accept or deny within 15 days after proof of loss
  • pay undisputed amounts within 15 days

Other policy rules

• Standard fire policy. Fire policies on Nebraska property follow the 1943 New York standard fire policy as nearly as practicable (44-501). A nuclear exclusion may be included with the Director's approval (44-501.01).
• Misrepresentation and warranties (44-358):
  • A misrepresentation or warranty defeats the policy only if it deceived the insurer to its injury.
  • A breach of warranty or condition voids coverage only if it existed at the time of the loss and contributed to it.
• Suit limits (44-357). A policy can't shorten the time to sue below Nebraska's statute of limitations.
• Attorney fees (44-359). An insured who wins a judgment on the policy recovers a reasonable attorney's fee.
• Unfair discrimination. An insurer may refuse or limit coverage because of a home's age or location only for a non-pretextual business reason, or when the law requires it (44-1525(7)).

Common exam traps

• Nebraska requires 60 days' notice, with the reason, to cancel or nonrenew a homeowners policy. Nonpayment requires 10 days.
• One legitimate claim isn't grounds to cancel.
• The valued policy law covers real property wholly destroyed by fire, tornado, windstorm, lightning or explosion. It doesn't cover flood.
• Nonmatching siding or roofing must be replaced for a reasonably uniform appearance.