Just over a year ago, there were no states that had special rules for insurance repair contracts. However, there are currently thirteen states that regulate contracts for repair of storm damage including Minnesota, Missouri, Georgia, Oklahoma, Illinois, Arizona, Louisiana, Indiana, Tennessee, South Dakota, Kentucky, Nebraska, and Alabama. If you are a contractor who repairs storm damages in any of these states, your residential contracts will have to comply with the new law. All thirteen states have a few things in common including:
Require a notice in the contract if any part of the work may be covered by insurance.
Give an owner the right to cancel the job if any part of the claim is denied.
Require a full refund within ten days if the job is canceled.
- Impose serious penalties for failure to comply.
At Arizona Contractor License Center we will keep you up to speed on the changing laws. We provide contractor test preparation, company setup, license application filing and business services for construction contractors in the State of Arizona and Utah. For more information visit us online or give us a call at (888) 738-3175.