Kentucky Storm Chaser Contractor Fraud Bill Goes to Governor

The Kentucky Legislature recently joined a growing list of states to take action this year and pass legislation (HB 421) that protects homeowners from contractor fraud and abuse, according to the Property Casualty Insurers Association of America (PCI).

The bill, sponsored by Rep. Steve Riggs (D – Louisville), provides consumer protections that require homeowners receive notices and contract termination rights, prohibit roofing contractors from requiring deposits or advance payment, except for emergency repairs necessary to protect the property from further damage, pending insurance claim determination and prohibits rebating or other compensation to induce consumers to enter into contracts.

“Representative Riggs’ bill is much needed and it will to help protect homeowners from being victimized by storm chasing contractors who use questionable solicitation and business tactics,” said Jeffrey Junkas, PCI regional manager. “While the vast majority of contractors are honest, reputable business people, there are always some who descend upon neighborhoods following a severe weather event and take advantage of unsuspecting homeowners. This year Kentucky has already experienced deadly tornadoes that produced significant property damage. Thousands are in the recovery process and legislation like this would go a long way in preventing homeowners from being victimized a second time.”

Similar legislation aimed at stopping contractor fraud following severe weather events has been signed into law this March in Nebraska, Indiana and South Dakota. Legislation is expected to be sent to the governor in Arizona and bills have advanced through at least one chamber in Colorado, Iowa and Tennessee.

Source: PCI