A proposed Louisiana law, House Bill 121, is drawing sharp lines between lawmakers and roofing professionals. The bill, which recently cleared the House Insurance Committee with unanimous support, aims to prohibit roofing contractors from assisting homeowners with insurance claims before one is officially filed.
Supporters argue the legislation is a necessary guardrail against fraud and inflated insurance costs. But contractors warn it could unintentionally criminalize basic customer service tasks — and make it harder for homeowners to get fair repairs.
What HB 121 Proposes
House Bill 121 seeks to:
- Ban roofers from advertising or offering any insurance-related services prior to the homeowner filing a claim.
- Impose fines up to $5,000 per violation.
- Bar licensed public adjusters from doing repair work on claims they’ve handled.
Lawmakers like Committee Chair Gabe Firment and Rep. Chance Henry say the bill restores professional boundaries and prevents so-called “storm-chaser” contractors from inflating claim costs using contingency agreements or assignment-of-benefits (AOB) tactics.
The Roofing Industry Pushes Back
Roofing professionals argue that HB 121 overreaches. Many say it could criminalize common practices like giving damage estimates or explaining deductibles — tasks they consider vital to helping customers make informed decisions.
“If we can’t even talk about the process, then you’re giving all the power to the insurance companies,” said Josh Lovell of Gator Roofing.
Jonathan Davis, board member of the Residential Roofing Association of Louisiana, estimates that 20–40% of small roofing business income depends on contingency agreements tied to claim approvals. He warned the bill, as written, could drive up compliance costs and erode margins — all without clear data on whether consumer costs will actually go down.
What Other States Have Tried
- Iowa: Prohibits roofers from offering claim-handling services. Legal challenges argue this limits free speech.
- Florida: Since 2019, contractors can’t negotiate claims or offer deductible rebates. While AOB lawsuits have decreased, new paperwork rules have burdened roofers.
- Texas: Enforces strict bans on roofers acting as adjusters. The state Supreme Court upheld these restrictions, citing professional boundaries.
These examples show that while such laws may reduce fraud, they often introduce legal uncertainty and operational hurdles for contractors.
Constitutional and Consumer Concerns
Legal experts caution that HB 121 may face constitutional challenges under the First and 14th Amendments if it’s seen as overly vague or a restriction on free speech. Consumer advocates, meanwhile, fear that forcing homeowners to hire licensed public adjusters — who often charge up to 10% of the claim — could deter lower-income residents from filing legitimate claims.
As of now, there’s no official cost–benefit analysis published on the Louisiana legislature’s site.
Final Thoughts
With HB 121 headed for a full House vote, the debate centers not just on fraud prevention, but on fairness and practicality. Lawmakers must weigh whether the bill strikes the right balance between reining in bad actors and preserving a contractor’s ability to serve homeowners effectively.
Without clearer language or exemptions for routine tasks, roofing contractors may be forced to choose between legal risk and limiting the help they can offer clients.
