Illinois

New Illinois Law Can Protect You Against Fraud

Storm season is just around the corner.  Don’t be a victim!

Homeowners all around Illinois have seen a rise in fraudulent roofing work, particularly after high winds or a hail storm.  These unlawful schemes typically occur as fraudulent home repair companies, many of whom come into Illinois from other states, use a salesperson offering to repair roofs or exterior damage for a low price or a "limited time offer."  These contractors ask for cash up front, usually before the homeowner's insurance company has had the opportunity to assess the damage and determine the appropriate covered loss amount.  "Storm chasers" fail to leave legitimate contact information, references, or even a business license number.  Unfortunately, a roof often goes unfinished or inadequately repaired, while the homeowner has already paid for the work that may not have even been necessary or not covered by his or her insurance policy.

A new law in Illinois has created regulations for home repair and remodeling following damaging weather with the objective of protecting consumers and legitimate contractors while prohibiting unscrupulous advertising and business practices.

• Contractors cannot waive, or advertise that they can waive, insurance deductibles as an inducement to perform home repair. 
• They cannot climb onto a homeowner's roof or inspect the property for damage without the homeowner's express permission. 
• Roofing contractors must provide their license name and number of their commercial vehicles, contracts, bids, and advertisements. 
• Consumers must be given a copy of the "Home Repair: Know Your Consumer Rights" pamphlet before beginning any home repair or remodeling project by the contractor. If the contract is over $1,000, the consumer must sign and date an acknowledgement form.
• Consumers who enter into a contract with a home repairer for work to be paid from the proceeds of an insurance policy have the right to cancel the contract within 5 business days if the homeowner learns that the claim is not covered by the insurance policy. 

Learn more about protecting yourself against Fraud at State Farm’s Learning Center.

If a homeowner feels he or she has been a victim of fraud, contact the local State's Attorney's office, the Illinois Attorney General's office at 800-243-0618, or the Illinois Department of Financial and Professional Regulation at (312) 814-6910.