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Committee hears testimony urging protections for homeowners in post‑loss insurance claims
Summary
Supporters told the committee SB 6,178 would stop contractors from taking over homeowners' post‑loss insurance rights and leaving homeowners without recourse; the Office of the Insurance Commissioner and consumer advocates urged passage while members questioned penalties and whether the law might sweep in legitimate contractors.
Lawmakers heard extensive public testimony on Senate Bill 6,178 on Feb. 18, a bill the sponsor said is intended to protect homeowners — particularly after wildfires or other disasters — from contracts that transfer post‑loss insurance rights to contractors.
Sen. Victoria Hunt (5th Legislative District), sponsor of SB 6,178, said the bill is aimed at situations where "contractors are beginning to incorporate clauses into repair contracts that fully grant them and not the homeowner the benefits from their future insurance payout." She told the committee the legislation does not prevent a…
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