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Following the floods in Northwest Iowa in 2024, the House Local Government Committee, of which I served as Chair, reported out of committee a bill that would become SF 619, which provided additional programs and resources for disaster recovery and assistance. Additionally, the comprehensive legislation included new consumer protection reforms. It established regulations for post-loss assignments, ensuring that residential contractors cannot engage in deceptive practices when handling insurance claims. This includes prohibiting contractors from rebating deductibles or imposing fees for canceling assignments. Required contractors to provide detailed itemized descriptions of work to be performed and inform clients of their rights under their insurance policies.
Additionally, the law enhances the licensing process for public adjusters, independent adjusters and appraisers, ensuring that only qualified individuals operate in Iowa. Applicants must secure a surety bond to demonstrate financial responsibility, protecting consumers from potential losses due to unlicensed or unethical practices. The law also added new penalties for adjusters and appraisers who violate licensing laws, including potential felony charges for serious offenses.
The law was challenged in federal court and last Friday the judge affirmed that prohibiting residential contractors from acting as a public adjuster is constitutional. When the law was enacted it represented a significant step in enhancing consumer protections at a time when needed most.
You can find the Attorney General’s press release here: https://www.iowaattorneygeneral.gov/newsroom/attorney-general-brenna-bird-announces-win-in-protecting-iowa-homeowners
If you or someone you love has been a victim of contractor or insurance fraud, contact the Attorney General’s Office at 515-281-5926 or through the website at iowaattorneygeneral.gov.
Contact Rep. Megan Jones by email: megan.jones@legis.iowa.gov
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