Nebraska • Special assessment notice

Special assessment from your Nebraska condo — is it really a hail-deductible bill?

Nebraska sits in the core of hail alley, and that's where most of its special assessments come from — a master-policy deductible structured as a percentage of value, landing on owners after a storm.

The short answer

In Nebraska the board's budget passes unless a majority of owners reject it, and insurance shortfalls are an assessable common expense (§ 76-871(h)). In hail alley, percentage wind/hail deductibles (1–2%) turn into five- and six-figure special assessments. There's no super-lien and no reserve mandate. CondoSignal reads your notice against the Condominium Act. Free.

Nebraska at a glance

Insurance shortfall

Common expense

Above proceeds + reserves (§ 76-871(h)).

Hail deductible

1–2% of value

Five/six figures on big buildings.

Super-lien

None

Lien behind the first mortgage.

Resale cancel

None

Diligence before signing (§ 76-884).

Board authority and the shortfall rule

Under § 76-861 the board's budget (and any special assessment in it) passes unless a majority of all owners reject it; the declaration may set higher thresholds. Insurance shortfalls — losses above master-policy proceeds plus reserves — are an assessable common expense (§ 76-871(h)), so a hail loss that exceeds coverage becomes a special assessment. Past-due interest can run to 18%.

The percentage-deductible problem

Nebraska master policies increasingly carry percentage wind/hail deductibles (1–2% of value) plus actual-cash-value roof settlements and cosmetic-damage exclusions. On a large building those deductibles are five or six figures, and they get passed to owners through special assessments. With no reserve mandate, there's rarely a cushion.

No super-lien, no cancellation right

Nebraska is not a super-lien state — the association's lien is subordinate to the first mortgage (§ 76-874) — so high delinquency is a financial-health signal. And resale buyers get the disclosure documents but no statutory cancellation right (§ 76-884), so due diligence has to happen before signing.

Your rights in Nebraska

Nebraska owners can reject the budget by a majority of all owners (§ 76-861) and receive disclosure documents at resale — but there's no statutory cancellation right. None of this is legal advice — confirm against ch. 76 and Nebraska counsel.

What to check

  • Determine whether the assessment is covering a hail shortfall.
  • Find the wind/hail deductible (percentage of value).
  • Check whether the roof is insured at ACV vs. replacement cost.
  • Ask whether the association funds reserves at all.
  • Check delinquency (no super-lien — weaker collection).
  • Do your diligence before signing (no cancellation right).

Sources

Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Nebraska-licensed professional.

FAQ

Frequently asked questions

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