New Indiana Law Can Protect You Against Fraud - 14 News, WFIE, Evansville, Henderson, Owensboro

Storm season is here.  Don't be a victim!

Homeowners all around Indiana have seen a rise in fraudulent roofing work, particularly after high winds or a hail storm.  These unlawful schemes typically occur as fraudulent home repair companies, many of whom come into Indiana from other states, use a salesperson offering to repair roofs or exterior damage for a low price or a "limited time offer."  These contractors ask for cash up front, usually before the homeowner's insurance company has had the opportunity to assess the damage and determine the appropriate covered loss amount.  "Storm chasers" fail to leave legitimate contact information, references, or even a business license number.  Unfortunately, a roof often goes unfinished or inadequately repaired, while the homeowner has already paid for the work that may not have even been necessary or not covered by his or her insurance policy.

A new law in Indiana that went into effect on July 1 creates regulations for home repair and remodeling following damaging weather with the objective of protecting consumers and legitimate contractors while prohibiting unscrupulous advertising and business practices.

• Contractors cannot waive, or advertise that they can waive, insurance deductibles as an inducement to perform home repair. 
• Contractors may not enter into a home improvement contract unless one of the following applies:
  • the contractor resides, is domiciled, or is authorized to do business in Indiana
  • the contractor maintains a fixed physical location (office) from which they do business
  • or they have appointed a resident agent in the state for service
• Consumers who enter into a contract with a home repairer for work to be paid from the proceeds of an insurance policy have the right to cancel the contract within 3 business days if the homeowner learns that the claim is not covered by the insurance policy.
• Roofing contractors are prohibited from acting as a public adjuster.

A contractor who violates this statute may have committed a fraudulent act that is actionable by the attorney general or by a consumer.

If a homeowner feels he or she has been a victim of fraud, contact the Indiana Attorney General's office at 1-800-382-5516.