Dallas
214-321-9341
R.C.A.T. Licensed Roofing Contractor #03-0219

New Texas Law Separating Contractors & Adjusters

As discussed at the NTRCA meeting a few weeks ago, and mentioned in a previous blog post, Governor Perry signed HR 1183 into law this week. The bill is short but can have a great impact. Here is how it reads (note this may not be the final version as passed into law):

A BILL TO BE ENTITLED

AN ACT

relating to prohibited conduct by insurance adjusters, public insurance adjusters, and roofing contractors.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 4101, Insurance Code, is amended by adding Subchapter F to read as follows:

SUBCHAPTER F. PROHIBITED CONDUCT

Sec. 4101.251. CERTAIN ROOFING-RELATED BUSINESS PROHIBITED. (a) An insurance adjuster licensed under this chapter may not adjust a loss related to roofing damage on behalf of an insurer if the adjuster is a roofing contractor or otherwise provides roofing services or roofing products for compensation, or is a controlling person in a roofing-related business.

(b) A roofing contractor may not act as an adjuster or advertise to adjust claims for any property for which the contractor is providing or may provide roofing services, regardless of whether the contractor holds a license under this chapter.

(c) The commissioner shall adopt rules necessary to implement and enforce this section.

SECTION 2. Subchapter D, Chapter 4102, Insurance Code, is amended by adding Section 4102.163 to read as follows:

Sec. 4102.163. CERTAIN ROOFING-RELATED BUSINESS PROHIBITED. (a) A roofing contractor may not act as a public adjuster or advertise to adjust claims for any property for which the contractor is providing or may provide roofing services, regardless of whether the contractor holds a license under this chapter.

(b) The commissioner shall adopt rules necessary to implement and enforce this section.

The essence of this is a separation of adjusting and contracting which is a good thing. Many low-end roofing contractors have passed themselves off as quasi-public adjusters as a means to get a job. This will put a clamp down on those guys.

Homeowners should seek the most qualified roofer to handle their roofing job, not the roofer claiming to be the “insurance specialist”.  A good contractor should be able to give a detailed, well-written estimate.  While that estimate may be of help to a property owner in their claims process, the roofing contractor should be all about the roof, not the claim.

For more about the roof, visit the rest of BertRoofing.com

Call Us At (214) 321-9341