Bill > SB201

This bill provides enhanced consumer protection for homeowners who contract with contractors for home repairs following natural disasters by establishing several key requirements and restrictions. The legislation defines a natural disaster as a flood, tornado, hurricane, earthquake, or other event where the Governor declares a state of emergency, and focuses on preventing potential contractor misconduct within one year of such an event. Contractors are prohibited from engaging in unfair practices such as failing to start work within a year, completing substandard work, requiring insurance proceeds assignment, or performing services inconsistent with industry standards. The bill mandates that contractors provide homeowners with a specific cancellation notice in bold, ten-point type, explaining their right to cancel the contract within five business days if their insurance claim is denied. Additionally, the bill prohibits insurance companies from selling homeowner's policies that allow contractors to be assigned insurance proceeds within one year of a natural disaster. Contractors can only collect payment for emergency services acknowledged in writing as necessary to prevent immediate damage. These provisions aim to protect homeowners from potential exploitation during vulnerable post-disaster periods by ensuring transparency, providing cancellation rights, and restricting certain contractual practices.

Agriculture and Natural Resources, Business and Industry

https://www.legis.ga.gov/legislation/70494