On January 11, 2012, Sen. Lois Tochtrop and Rep. Glenn Vaad introduced SB 12-038 – Concerning Measures to Protect Consumers Who Engage a Roofing Contractor to Perform Roofing Services on Residential Property. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.
The bill requires residential roofing contractors to sign a written contract with customers that details the following:
- The scope of roofing services and materials to be provided;
- The approximate dates of service;
- The costs of the services;
- The roofing contractor’s contact information;
- Identification of the roofing contractor’s surety and liability coverage insurer and their contact information, if applicable;
- The roofing contractor’s policy regarding cancellation of the contract and refund of any deposit, including a rescission clause allowing the client to rescind the contract and obtain a full refund of any deposit within 72 hours after entering the contract; and
- A written statement that if the client plans to use the proceeds of a property or casualty insurance policy to pay for the roofing work, the roofing contractor cannot pay, waive, rebate, or promise to pay, waive, or rebate all or part of any deductible applicable to the claim for payment for roofing work on the covered residential property.
A person who enters into a contract with a roofing contractor to perform roofing work on his or her residential property and who submits a claim to his or her property and casualty insurer for payment for the roofing work may rescind the contract for the roofing work if the insurer denies the claim in whole or in part, as long as the person notifies the roofing contractor within 72 hours after the claim is denied. The roofing contractor must refund any moneys paid by the customer within 10 days after receipt of the cancellation notice.
When residential roofing work will be paid from the proceeds of a property and casualty insurance policy covering the residential property, the roofing contractor is prohibited from paying, waiving, rebating, or offering or promising to pay, waive, or rebate all or part of any deductible that applies to the claim.
Assigned to the Business, Labor and Technology Committee.
Summaries of other featured bills can be found here.