PCI Throws Support Behind Montana Bill Aimed at Storm-damage Contractors

The Property Casualty Insurers Association of America is throwing its support behind a bill in Montana that would toughen rules on storm-damage contractors.

House Bill 222, authored by Dennis Lenz, R-Billings, would create the Montana Exterior Residential Storm Damage Repair Contracts Act.

This would require contractors to provide a detailed description of all damage included in the repair proposal and what work the contractor will do.

If the bill passes, Montana would join 27 states already have approved similar laws that prevent storm chasing contractors from taking advantage of homeowners.

HB 222 specifies what information contractors must include in their advertising, requires a detailed contract be provided and allows homeowners to cancel the contract within five days if the work is not covered under the insurance policy.

“HB 222 only impacts contracts involving insurance and lays out a reasonable timeline for the necessary insurance approvals – what reputable contractors already do,” said Melanie Smith, regional manager for PCI. “You can’t stop Mother Nature, but you can approve reforms that will give consumers tools to protect themselves from unfair contracts and poor repairs to their home.”

HB 222 would requiring advertising to include:

• The name of the contractor
• Assurance contractor is insured and bonded
• License or registration number for jurisdiction
• HB 222 Requires full disclosure before signing a contract by requiring proposals to include:
• Description and location of all damage
• Description and itemization of any emergency repairs
• Any damaged areas not included in proposal and reason for exclusion

HB 222 also requires contracts to include a copy of a proposal with damage areas, disclosure that the consumer is responsible for cost if insurance company denies claim, the right to cancel a contract within five business days or five days after claim was legitimately denied by insurance company.