Today, Governor Cuomo signed legislation (S.1405/A.7531) aimed at protecting homeowners from “storm chasers,” unscrupulous roofers who exploit homeowners in need of home repair services after a major storm, performing sub-standard work that must be redone, or no work at all.
Big I NY and partners in the insurance industry undertook a multi-year campaign to pass this legislation to protect our customers. Big I NY member agents sent emails to lawmakers and the governor urging passage of this important bill.
The legislation, which takes effect 180 days from today, establishes a number of protections, including:
- Establishing specific requirements and responsibilities of roofing contractors
- Requiring a roofing contractor to enter into a written contract with a homeowner prior to engaging in any repair services
- Prohibit roofing contractors from advertising or promising to pay or rebate any part of a deductible
- Granting the customer the right to cancel a contract within 3 days after receiving notice their insurer has denied all or part of their claim
- Holds that a homeowner in not responsible for payments after the contract has been canceled, except work done before cancellation and for emergency repairs
- Prohibits a roofing contractor from requiring a deposit in excess of 50% of the total contract amount
- Prohibits a contractor from abandoning or failing to perform work without justification, or deviating materially from plans or specifications
- Stipulates that a roofing contractor shall not fail to pay for materials or services rendered when the contractor has received sufficient funds as payment for the contract applicable to those materials and services.
- Bars a roofing contractor from performing any reporting, adjusting, or negotiation of a claim for the homeowner or receiving compensation for referral to an entity that performs such services
- Implements minimum general liability insurance requirements for roofing contractors of at least $100,000/$300,000 bodily injury and $50,000 property damage, and workers comp coverage or proof of exemption.
We thank the bill sponsors, Senator Carlucci (D, Rockland-Westchester) and Assemblywoman Buttenschon (D, Utica), and Governor Cuomo for their support of this important issue.