Understanding Deductible Changes and ACV Roof Policies
As a homeowner in Nebraska, your home insurance policy is one of the most important tools you have to protect your financial future. When was the last time you read through your home insurance policy or asked your agent to review your policy with you? With significant Nebraska home insurance deductible changes and a growing trend toward ACV (actual cash value) roof policies, now is the time to give your coverage a second look.
Rising Premiums in Nebraska
Home insurance rates are on the rise across the country, and Nebraska is among the hardest hit. According to a 2024 LendingTree analysis, Nebraskans spent 19.9% more of their income on home insurance in 2024 than they did in 2023—the highest increase in the U.S.
This spike is largely driven by the increasing frequency and severity of hailstorms, tornadoes, and other extreme weather events, all of which are common in our state. Combined with inflation and rising construction costs, insurance companies are making changes to keep up—often passing those changes on to homeowners.
Deductibles Are Going Up
One of the biggest changes homeowners are seeing is in their deductible amounts. While deductibles used to be a flat dollar amount (like $1,000 or $2,000), many policies are shifting toward percentage-based deductibles. That means if your home is insured for $300,000 and you have a 2% deductible, you’ll be responsible for the first $6,000 of any claim.
The Insurance Information Institute reports that average homeowners are increasingly opting for higher deductibles to reduce premiums, but this can backfire when disaster strikes and you’re left footing a large portion of the bill.
It’s important to review all deductible changes to your Nebraska home insurance to understand what you’d be responsible for if you filed a claim. A lower premium might sound attractive, but not if it means you’ll struggle to cover a high deductible in the event of a major loss.
Understanding ACV Roof Policies
Another trend that’s affecting Nebraska homeowners is the rise of ACV roof coverage. Traditionally, policies included replacement cost value (RCV) coverage, which reimburses the full cost to replace your roof with no depreciation. However, many insurers are switching to ACV policies, which pay only the current market value of your roof, factoring in depreciation due to age and condition.
For example, if your 15-year-old roof is damaged in a storm, ACV coverage may only reimburse you for a fraction of what it would cost to replace it—sometimes as little as 20%–30%. That could leave you paying tens of thousands of dollars out of pocket.
Given Nebraska’s exposure to hailstorms and wind damage, roof claims are especially common here. If your insurer has quietly switched your policy to ACV, your coverage may not be as strong as you think.
Did you know that most mortgage companies require home insurance policies to cover replacement cost? If your policy is moved to an ACV settlement type on your roof, your mortgage provider may elect to purchase another policy to completely cover the roof, at a much higher cost. Refinancing, new purchases, and other mortgage type loans can also be denied if you have an ACV settlement on your policy.
What You Can Do
1. Review Your Policy Carefully
Don’t just renew your home insurance without reading the details. Check your declarations page and look for changes in your deductible, roof coverage, and exclusions.
2. Ask About Deductible Options
If you’ve been moved to a percentage-based deductible for your Nebraska home insurance, ask whether you can return to a flat dollar amount. Saving a bit on premium now by carrying a higher deductible may seem appealing, but those savings are quickly lost when you need to open a claim.
3. Confirm Roof Coverage Type
Make sure you understand whether your policy offers ACV or RCV for your roof. RCV offers much more protection, especially in a storm-prone state like Nebraska.
4. Speak With a Local Agent
Insurance isn’t one-size-fits-all. A Nebraska-based home insurance agency like Eric Luebbe Insurance understands the risks homeowners face and can help you secure a policy that actually protects you.
Let Eric Luebbe Insurance Help
At Eric Luebbe Insurance, we believe you shouldn’t have to face surprises when disaster hits. We’ll walk through your home insurance policy with you, explain any changes, and help you choose the right deductible and roof coverage. As your local insurance experts, we’re here to protect what matters most.
Contact Eric Luebbe Insurance today or stop by our office in Fremont, NE, to schedule your policy review—before the next storm rolls in.
