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 earthquakes, fires, floods, or storms, or any weather event declared a state of emergency). Specifically, the bill prohibits residential contractors from advertising or promising to rebate any part of an insurance deductible, and from representing or negotiating insurance claims on behalf of homeowners for repairs to their homes or trees. It mandates that contractors provide homeowners with a detailed notice outlining their contractual obligations and rights, including the fact that their contract is void if the contractor violates these new rules. Furthermore, any postloss assignment must clearly itemize the work and costs, include a disclaimer that the insurer has not agreed to the pricing, and inform the homeowner of their right to cancel the assignment within five business days, with exceptions for emergency situations where immediate work is necessary to prevent imminent danger or substantial property damage. The bill also outlines penalties for violations, including contract voidance and potential forfeitures of up to $5,000 per violation, and clarifies that contractors must pursue payment from the insurance company first before exhausting all legal options.