What Georgia Homeowners Need To Know About Storm Damage Claims and Georgia House Bill 423!
Dear Georgia Homeowners,
Unfortunately, many roofing contractors canvassing Georgia neighborhoods for storm-damaged properties fail to inform homeowners about the regulations in Georgia House Bill 423, passed in December 2012. This law outlines specific rules for roofing contractors and homeowners and strictly prohibits roofing contractors from:
- Offering to pay, rebate, or reduce any portion of the insured’s deductible
- Providing any form of compensation, gift, prize, bonus, coupon, credit, referral fee or any other item of monetary value for any reason.
- Offering discounts or allowances against their fees in return for displaying signs or advertisements at your home.
- Roofing contractors are also prohibited from offering free shingle upgrades to homeowners – as an incentive to secure their business.
- House Bill 423 also restricts roofing companies from pricing their contracts in such a way that puts money in the homeowners pocket from the insurance proceeds.
The following is an excerpt from House Bill 423 confirming these regulations. Roofing contractors can no longer:
- “(4) Advertise or promise to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of goods or services. As used in this subsection, the term ‘promise to pay or rebate’ includes: (a) Granting any allowance or offering any discount against the fees to be charged, including, but not limited to, an allowance or discount in return for displaying a sign or other advertisement at the insured’s premises, (b) or paying the insured or any person directly or indirectly associated with the property any form of compensation, gift, prize, bonus, coupon, credit, referral fee, or another item of monetary value for any reason.”
And because these regulations were not being followed by either party – the Georgia Insurance Commissioner issued Bulletin 18-EX-3 in August 2018, reminding roofing contractors and homeowners that violating House Bill 423 constitutes insurance fraud, which is subject to serious legal penalties.
Here are several paragraphs from that Bulletin:
TO: Public Adjusters. Roofing Contractors and Homeowners
FROM: Ralph T. Hudgens – Insurance and Safety Fire Commissioner
RE: Illegal Offers to Waive or Rebate Homeowners’ Insurance Deductibles“It has come to my attention that some roofing contractors operating in the State of Georgia are offering to waive or rebate homeowners’ insurance deductibles. I am issuing this bulletin to address frequently asked questions related to this practice, and to advise public adjusters, roofing contractors, and homeowners of the applicable laws.”
“How can waiving or rebating insurance deductibles be insurance fraud? Pursuant to Georgia law, a person commits insurance fraud by filing (or aiding in the filing of) a false or fraudulent statement or representation of any material fact or thing in the filing of a claim. See 0.C.G.A. §33-1-9(aX1)(B).”
“A roofing contractor and a homeowner may both be in violation of Georgia law if the homeowners submits a contractor’s quote to the insurance company seeking full payment of the quoted amount, knowing that the actual cost to the homeowners will be less than the contractor’s quote. See O.C.G.A.”
Obviously, the goal of these regulations is to prevent contractors from tempting homeowners with special offers to win their business. Therefore, as a reputable and honest roofing company, Finley’s Roofing, Inc. strictly adheres to all laws and regulations set forth in Georgia’s House Bill 423.