Senate Bill 531 aims to regulate the assignment of postloss rights and benefits under property insurance policies to residential contractors in Wisconsin. The bill defines a "residential contractor" as someone who repairs or replaces residential roof systems or performs other related work due to damage from catastrophes, which include natural disasters like fires, floods, and tornadoes. Key provisions of the bill prohibit contractors from advertising or promising to rebate insurance deductibles as an inducement for services, and they cannot represent or negotiate on behalf of property owners for insurance claims related to exterior repairs. Additionally, contractors must provide written disclosures regarding the contract obligations and rights to homeowners before entering into agreements.

The bill also establishes specific requirements for postloss assignments of rights or benefits under property insurance policies. These assignments must include detailed descriptions of the work and costs involved, and homeowners have the right to cancel the assignment within five business days. If a contractor violates any provisions of the bill, the contract becomes void, and the commissioner of insurance may impose penalties. Furthermore, the bill ensures that if a contractor accepts a postloss assignment, they must pursue payment solely from the insurance company, and homeowners relinquish certain rights against the insurer. Overall, the legislation seeks to protect homeowners from potential abuses in the contracting process following property damage.