House OKs measure to require contractors, insurers to provide clearer information

Residential contractors being paid for work through insurance claims may be required to provide clearer information in their initial estimates.

The House on Thursday passed HF2899, which would require contractors, adjusters or insurers to disclose to homeowners certain prohibitions outlined in statute. The vote was 127-0.

Contractors being paid through property or casualty insurance are barred from advertising or promising to pay insurance deductibles as a sales method. The bill would require them to disclose that information in their initial estimates, and would require adjusters or insurers to provide the same written notification.

Rep. Jeff Howe (R-Rockville), the bill sponsor, said some insurers are asking contractors to build the deductible prices in their bids, which “is strictly prohibited by state statute.” The bill would “help contractors and homeowners understand what the current law is,” Howe said.

The bill heads to the Senate where Sen. Karin Housley (R-St. Marys Point) is the sponsor.