SB 101
Creates requirements for contractors who perform home exterior and roof work
LR Number:
Last Action:
6/30/2011 - Signed by Governor
Journal Page:
Calendar Position:
Effective Date:
August 28, 2011
House Handler:

Current Bill Summary

SB 101 - Under the act, contractors who perform roof or other residential exterior work are prohibited from offering to pay, in any monetary form, a homeowner's insurance deductible as an incentive to encourage the homeowner to hire the contractor.

When a holder of property and casualty insurance enters into a contract for home exterior work but is notified by the insurer that part or all of the work under contract will not be covered by the policy, the act allows the insurance holder to cancel the work contract within 5 business days of receiving the notification. The act provides procedures for how the insurance holder may cancel the contract. The act requires that certain notices regarding cancellation be included by home exterior contractors in their contracts. If a contract is cancelled, home exterior contractors must refund any payments or deposits made by an insurance holder within 10 days, except when the contractor performed agreed-upon necessary emergency services, in which case, the contractor is entitled to payment for services rendered.

Home exterior contractors may not represent or negotiate on behalf of any insurance holder regarding insurance claims for the related home exterior work.

Violations of the act by home exterior contractors shall be considered an unlawful merchandising practice and may be prosecuted as such.