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Senate Bill 201 aims to let homeowners cancel contracts after governor-declared disasters; committee members ask for narrower definitions
Summary
Sen. Walker presented SB 201 to the House Agriculture & Consumer Affairs Committee to allow homeowners in governor-declared disaster counties to cancel certain repair contracts and limit assignment of insurance benefits; members asked for changes to timing and scope.
Senate Bill 201, presented to the House Committee on Agriculture & Consumer Affairs by Sen. Walker, would add consumer protections for homeowners contracting for repairs after a natural disaster declared a state of emergency by the governor. The bill would allow consumers to cancel contracts in specific circumstances, require contractual notice of the right to cancel, and prohibit assignment of certain insurance benefits to contractors.
"What I'm trying to do with this bill is to give the ability for a homeowner to cancel their contract with a contractor, if the contractor does not perform like they promised to do," Sen. Walker said. He described grounds for cancellation found in the bill: failing to substantially commence work, failing to complete services properly, and a consumers right to cancel within five days if an insurer denies coverage after an adjusters inspection. Senator Walker said the protections would apply for 12 months after a governor-declared state of emergency and would exclude emergency mitigation work such as temporary tarping.
Committee members from affected districts urged tightening or clarifying definitions. Representative Hagan said many residents in impacted counties faced contractors that appeared almost immediately after Hurricane Helene and supported the consumer protections but warned that 6 months might not be long enough given delays in repairs. Representative Olsteen described significant local damage and predatory pricing for tasks such as tree removal.
Several members suggested amending the bill to clarify the definition of "natural disaster" and whether a governors declaration should be the sole trigger. Representative Jasper asked whether county-level declarations should also qualify for the protections; Sen. Walker said he would review the provision and noted he was balancing homeowner protection with not discouraging legitimate contractors needed for recovery.
Sen. Walker said he planned to revise the bills language, including clarifying the statutory cross-reference for "natural disaster," possibly changing the 12-month period and setting an effective date for any provision that requires insurers to modify forms (the insurers asked for an effective date of Jan. 1, 2026, to update their forms).
The committee did not vote on SB 201 during the hearing; the sponsor said he intends to return with amendments and asked members to offer feedback in the coming days.
