The Indiana and Nebraska legislatures recently passed much needed legislation that could help protect homeowners from contractor fraud and abuse, according to the Property Casualty Insurers Association of America (PCI).
Additionally, the South Dakota legislature sent a similar bill to its governor in late February. Contractor fraud legislation also has been introduced in five other states — Arizona, Colorado, Iowa, Kentucky and Tennessee, PCI said.
The bills passed in Indiana (HB 1237), Nebraska (LB 963) and South Dakota (SB 145) provide for notices and contract termination rights and prohibit rebating or other compensation to induce consumers to enter into contracts.
“These bills are intended to help protect homeowners from being victimized by storm chasing contractors who use questionable solicitation and business tactics,” said Ann Weber, PCI’s vice president of state government relations. “While the vast majority of contractors are honest, reputable business people, there are always some who descend upon neighborhoods following a severe weather event and take advantage of unsuspecting homeowners.”