Bill > SB531

This bill establishes new regulations for residential contractors who accept "postloss assignments," which are written transfers of rights or benefits under a property insurance policy after a covered loss has occurred, such as damage from a "catastrophe" (defined as natural events like fires, floods, or windstorms). Specifically, the bill prohibits residential contractors from advertising or promising to rebate insurance deductibles, which are the portion of a loss that the policyholder must pay themselves, and also bars them from representing or negotiating insurance claims on behalf of homeowners. When contracting for repairs after a catastrophe, contractors must provide homeowners with a notice detailing their obligations and rights, including that their contract is void if the contractor violates these new rules. Furthermore, any postloss assignment must clearly itemize the work and costs, include specific disclosures about the insurer's right to assess claims, and grant the homeowner a five-business-day window to cancel the assignment without penalty, unless it's an emergency situation requiring immediate action. The bill also outlines penalties for violations, including contract voidance and fines of up to $5,000 per violation, and clarifies that contractors must pursue payment from the insurance company first and that homeowners who grant an assignment cannot pursue non-contractual claims against their insurer.

Agriculture and Natural Resources

https://docs.legis.wisconsin.gov/2025/proposals/reg/sen/bill/sb531