DLI Warning Covering Deductibles

This message is intended to warn any exterior specialists working in Minnesota that new investigation practices have been taken up by the Department of Labor and Industry (DOLI).  With the recent rash of storm occurrences, in particular, those dated June 11, 2017, it has come to the attention of CAM and DOLI that unlicensed contractors may have been working in the areas where there was a storm occurrence.

We have also heard that there are contractors offering to pay for homeowners deductibles.  This is a clear violation of MN Statutes 325E.66 which prohibits residential building contractors from advertising or promising to pay or rebate, directly or indirectly, all or part of any insurance deductible, or from offering to compensate a customer for providing any service.As stated earlier, DOLI has become aware of this issue and will be sending out an investigator to canvass neighborhoods that have been impacted by the storms that hit the Twin Cities on June 11, 2017 to look for unlicensed contractors. This investigator, and likely others in the future, will also be interviewing homeowners who have a contractor’s yard sign in their yard to determine whether the contractor offered to pay the homeowner’s deductible or made any other offer of a discount or rebate.