On June 6, 2012, Colorado fundamentally altered the rules that apply to roofers and restoration contractors handling losses on residential property, according to a post on the Lawfirm Blog by Chipman Glasser.  Governor Hickenlooper signed into law a bill that, at first blush, appears aimed at unscrupulous “storm chasers.”  The impact of the new statute, however, reaches far beyond its presumptive target.  And the law is rife with unintended consequences for everyone within its reach. 

The new rules arguably affect virtually every restoration contractor doing business in Colorado, regardless of whether that contractor’s primary business involves roof repairs. According to the statute, the term “Roofing Contractor” includes any “firm, partnership, corporation, association, business trust, limited liability company, or other legal entity that performs or offers to perform roofing work in [Colorado] on residential property for compensation.”2  Contractors in the restoration industry invariably assume the role of general contractor, and in doing so, they take on responsibility for all of their subcontracted trades.  As a result, every residential restoration project that involves roofing work – no matter how minor – likely requires compliance with the statute.  That includes fire losses in which the roof is damaged.  And it includes water losses that are caused by high wind and roof damage (i.e., tornado, microburst, etc.).  Indeed, the list of property losses that necessitate some degree of roofing work is virtually endless.

Moreover, the law introduces a number of new requirements that contractors will likely find difficult to follow.  And non-compliance carries draconian consequences.

See the rest of this detailed piece on Glasser’s lawfirm blog here.