Senate approves consumer protections for homeowners after natural disasters

The Georgia Senate passed Senate Bill 201 on March 5 to add consumer protections for homeowners contracting for repairs after natural disasters. Sponsors said the measure responds to recurring reports of scam contracting and pressure-sales tactics in the wake of storms.

Sponsor Senator Walker described the bill as an extension to Georgia’s Fair Business Practices Act: it gives homeowners a right to rescind certain repairs contracts if the contractor fails to perform services in a timely, reasonable manner, and allows a 5-day cancellation window when an insurance claim’s coverage is changed (for example, an insurer denies or limits a claim after the homeowner has already signed a repair contract). The bill also bars assignment of insurance benefits to contractors in counties under a state-declared emergency for disaster damage.

Supporters said the measure would protect homeowners from unscrupulous contractors who pressure residents immediately after storms, and would help preserve insurance proceeds for insured homeowners. Questions on the floor focused on enforcement, penalty levels and how the statute would interact with existing insurance and contractor licensing rules.

The Senate passed the bill by substitute; the roll-call on the floor showed it passed by a large majority.

Supporters urged quick House consideration given the seasonal storm calendar; the measure now goes to the House.