Substitute House Bill No. 5263 aims to regulate the assignment of post-loss benefits under homeowners and commercial property insurance policies, with key provisions set to take effect on January 1, 2027. The bill introduces new definitions and requirements for assignment agreements, mandating that these agreements be in writing and executed by both the assignor and assignee. It includes the right for the assignor to rescind the agreement within specified timeframes, requires an itemized cost estimate, and necessitates a notice regarding the rights being relinquished. Additionally, the bill prohibits certain fees in assignment agreements and limits the amount of post-loss benefits that can be assigned in urgent situations. Any non-compliant assignment agreement will be deemed void and unenforceable, enhancing consumer protection and transparency in the assignment of insurance benefits.

The bill also introduces significant amendments to the regulations governing home improvement contractors, including stricter registration requirements and prohibitions against certain advertising practices. Contractors must now obtain a certificate of registration, provide detailed disclosures about their business, and are restricted from soliciting work through misleading advertisements. Furthermore, the bill establishes a consumer bill of rights regarding insurance coverage, particularly concerning the use of drones and satellite imagery by insurance companies, which the Department of Consumer Protection is required to develop and publish by October 2026. Overall, sHB5263 seeks to improve accountability and professionalism within the home improvement sector while ensuring consumer rights are protected in the insurance landscape.

Statutes affected:
Raised Bill: 20-419, 20-420, 20-429, 20-429a
INS Joint Favorable Substitute: 20-419, 20-420, 20-429a, 42-137
File No. 187: 20-419, 20-420, 20-429a, 42-137
File No. 747: 20-419, 20-420, 20-429a, 42-137