Committee approves bill banning roofers from advertising they will cover homeowners' deductibles

The Senate Insurance & Commerce Committee passed House Bill 18‑02, a bill aimed at prohibiting residential contractors from advertising or otherwise representing that they will pay a homeowner's insurance deductible in connection with an insurance-paid repair.

Representative Lowry, who carried the bill in the House, described the problem as widespread contractor behavior that effectively "defraud[s] the insurance company" by representing the insured will not be responsible for the deductible. "What we've done with this bill is we've represented, recognized that this is an unfair trade practice for a roofing company to represent that they will cover your deductible," Lowry said.

Jim Breiter, general counsel with the Insurance Department, explained the bill amends the deceptive trade practices act and said enforcement would fall to the attorney general's office because roofers are not licensed by the insurance department. Committee members asked clarifying questions about whether the provision would unintentionally capture other businesses (for example, companies that put signs in yards) and how insurers handle recoverable depreciation and check disbursement. Breiter and Representative Lowry described common claims-handling practices and explained the bill targets residential repair transactions above $1,000 and homeowner policies, not commercial policies.

After questioning, a motion to "do pass" carried on a voice vote. The chair noted the bill would pass with five yes votes given attendance in the room. The committee did not record a full roll-call tally in the excerpted transcript.