New Law Aims To Reduce Storm Repair Fraud

State consumer protection officials say a new “storm chaser” law aims to reduce insurance fraud after damage from storms, and gives homeowners a right to cancel a contract within three days.

“If (a homeowner has) signed a contract with a contractor and then find out their insurance company has denied part or all of their claim, the new law gives them three days to cancel the contract with the builder, even though some of the work may already have been done,” said Sandy Chalmers, an administrator with the Department of Agriculture, Trade and Consumer Protection.

The three days do not begin immediately after the contract is signed. Rather, they begin after a consumer learns whether an insurance company will pay for storm repair.

State officials say consumers can better protect themselves from shady contractors by using referrals and checking for complaints made against a company.