Storm repair contracts must include estimates and cancellation rights

Licensed contractors must include repair details and cancellation notices in covered contracts. These rules apply to licensed contractors making covered residential repairs or replacements. The rules cover residential repairs for damage from a catastrophic storm in an area designated by an insurer, when the customer lives in or plans to live in the home. The estimate must describe the damage and work, explain excluded damage, and say whether the property was inspected; roof estimates must say whether the roof was physically accessed. The contract must warn that the homeowner may have to pay if insurance denies coverage. Homeowners may cancel within 72 hours after the insurer tells them the claim was denied, or for any reason within four business days after signing.

Contractors and people preparing repair estimates must disclose specified information to insured homeowners. The estimate disclosure rule covers individuals and contractors preparing estimates for post-storm repairs in anticipation of an insurance claim. A person preparing an estimate for post-storm work in anticipation of an insurance claim must document the claimed damage and explain any excluded areas. The estimate must disclose whether the property was inspected and, for roof work, whether the roof was physically accessed; it must also say that the contractor has not promised insurance will cover the loss. For contracted work, any change to the original work order must be written and signed by the homeowner.

Contractors may not act as the homeowner’s insurance adjuster or negotiate the claim for them. These limits apply to contractors providing post-storm residential repair or replacement services. With the homeowner’s permission, a contractor may communicate with the insurer about a claim dispute, including actual damages, if the contractor receives no compensation for that communication. A contractor may not promise that insurance will cover the proposed work.

Adjusters and contractors may not seek to sign up customers during an ongoing emergency at the damaged property. The adjuster restriction concerns offers to represent an insured person; the contractor restriction concerns agreements for work on damaged property. The restriction applies while the event causing the damage continues at the property or emergency responders are working there. Contractors may still provide services needed to restore essential services or prevent further immediate damage.