Posted on July 7, 2012
On June 6, 2012, on the eve of the hail season, Governor Hickenlooper signed into law Senate Bill 12-038, nicknamed the Colorado Consumer Protection Residential Roofing Bill. We have written about some of the requirements of this law before.
The new roofing law outlaws a particular sales practice directed to homeowners who would be able to pay for needed roof repairs by making a claim under their property and casualty insurance policy. Virtually all of these policies have a deductible, which the homeowner is responsible for paying. Sometimes, a roofing sales rep offers to help the homeowner with the deductible in order to encourage them to sign up for roofing services.
Under the new law, however, roofers are prohibited from offering to pay, waive or rebate some or all of a homeowner?s deductible in order to get the job. If the insurance company learns that the contractor has made an offer of this nature, it can disqualify the roofer from the job. Then, the homeowner has to start over with a new roofing contractor, and the first roofer has lost the job ? and maybe other jobs, too, since the insurance company will be alerted to the roofer?s sales practices.
More information about the Colorado Consumer Protection Residential Roofing law is in last month?s blog and is posted on our website.
This post contains general legal information only, and does not constitute legal advice. If you want to know how to comply with the new law, please contact the business and real estate lawyers at Underhill & Underhill, P.C. for a consultation.
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