The Contractors Association of Minnesota chalked upon another win at the legislature this past session! Given the divided government and the truly acrimonious session between the Legislative and the Executive Branch this year CAM was able to pass a small but significant piece of legislation.  The legislation requires insurance companies as well as contractors to clearly explain in writing that an insurance deductible can not be paid as part of a contract with a homeowner.  You may recall that some years ago, the Insurance Federation of Minnesota passed a law prohibiting this practice.  With the spate of yearly storm occurrences, there has been an increase in this practice by insurance adjusters as well as contractors that encourage or offer to have the deductible paid by the contractor.  This is illegal and can result in an enforcement action against the contractor by the Department of Labor and Industry.

All written estimates by the insurance industry and contractors must note this.  It is suggested that your written estimates have the following statement on every estimate.  It is also suggested that you point this out to all of your customers when negotiating a contract.

State law (Minn. Stat. § 325E.66) prohibits contractors from offering to pay a customer’s insurance deductible or offering anything of value as an inducement to enter into a contract for home repairs that are to be paid for as a part of an insurance claim.  Contractors who make such an offer are subject to public enforcement action by the Minnesota Department of Labor and Industry including fines of up to $10,000 per violation.

Please contact Lisa Frenette at if you have further questions or any concerns.