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State Govts. Respond to ‘Storm-Chaser Contractors'

May 21, 2012

We recently posted a piece to this section about how “storm-chaser contractors,” or those who aggressively follow natural disasters and offer immediate and cheap repair work, were taking away business from everyone else. USA Today has a bit of a follow-up to its original piece and it appears that state governments are trying to eliminate such a practice.



We recently posted a piece to this section about how “storm-chaser contractors,” or those who aggressively follow natural disasters and offer immediate and cheap repair work, were taking away business from everyone else. USA Today has a bit of a follow-up to its original piece and it appears that state governments are trying to eliminate such a practice.

From USA Today: “The Iowa Legislature is considering a bill that would rein in those contractors. The bill is part of a growing movement against the practice across the Midwest over the past two years. Minnesota, Illinois, Missouri, Nebraska and South Dakota have passed similar laws, Johnston said, and Wisconsin and Kansas have considered such bills.

The Iowa bill would void repair contracts signed when the contractor represents himself as working for an insurance company, promises to rebate a deductible, or fails to give customers a disclosure about how to cancel the contract. The Iowa Senate added a provision last week giving the state attorney general the authority to prosecute contractors under consumer fraud law.

Bill Good, executive vice president of the National Roofing Contractors Association, said "there's no question" storm-chasing is a problem. Consumers, he said, need to make sure the contractor is licensed if their state requires it, and that the company has a permanent place of business. Consumers should not pay cash and should not sign documents authorizing the contractor to negotiate directly with the insurance company.”

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