Industry Issues to Be Aware Of (7)

July 26, 2012 | from AdminBerenson No Comments

Illinois: On insurance-backed remodeling work (such as for a storm-chasing job), a contractor:
1. Cannot offer a discount on the insurance work.
2. Cannot assist the homeowner with the filing of the insurance claim.
3. Must include its roofing contractor’s license number in the contract, if performing roof work.
4. Cannot start work until the insurance claim is resolved.

Most problematic, the homeowner has the right to cancel the contract, and the contractor must notify the homeowner in writing of his or her right to cancel within five days after the insurer has denied any part of the claim, or within thirty days after the homeowner has delivered a proper proof of loss to the insurance carrier, whichever comes first.

Missouri: Joining a growing number of states and the federal government, Missourians can now register their cell phone numbers on the state’s do not call list. Telemarketers face penalties of up to $5,000 per violation (call or text message) of the state’s no-call law.

Pennsylvania: A Pennsylvania court has ruled that an oral change order between a contractor and a customer is unenforceable under Pennsylvania’s Home Improvement Consumer Protection Act (HICPA). HIPCA requires that any home improvement contract be in writing.

Tennessee: On insurance-backed roofing work (such as for a storm-chasing job), Tennessee law now requires that the home improvement contract must include a notice giving an owner the right to cancel the job if any part of the claim is denied. Contractors can’t accept a down payment or start work (except for emergency repairs) until the insurance claim has been processed. If any part of the insurance claim is denied, the owner can cancel the entire contract, even for work already completed.