(And What to Watch for When Contractors Come Knocking)
When a major storm rolls through Wisconsin, hail, wind or tornado, it’s not long before contractors start showing up in neighborhoods offering to help.
Some are reputable. Some are not.
A new Wisconsin law (2025 Act 230) was passed to protect homeowners from the risks that can come with post-storm repairs, especially when it comes to insurance claims and contractor agreements.
At R&R Insurance, we want to break this down in plain terms so you know what to expect and how to protect yourself.
Why This Law Was Created
After large storm events, it’s common for out-of-town contractors often referred to as “storm chasers” to move into affected areas.
In some cases, these contractors:
- Offer to “handle your insurance claim”
- Promise to cover your deductible
- Ask you to sign documents that transfer control of your claim
These situations can lead to:
- Unexpected out-of-pocket costs
- Disputes with your insurance company
- Contracts you didn’t fully understand
This new law is designed to prevent that.
What Contractors Can No Longer Do
They Can’t Waive Your Deductible
If a contractor tells you:
“Don’t worry about your deductible. We’ll take care of it”
That’s now illegal.
Even offering discounts or incentives that effectively cover your deductible is prohibited.
They Can’t Act as Your Insurance Negotiator
Contractors are no longer allowed to:
- Represent you in discussions with your insurance company
- Negotiate your claim on your behalf
That role belongs to you and, if needed, licensed professionals like public adjusters.
The Biggest Change: Assignment of Benefits (AOB)
One of the most important parts of this law deals with something called an “assignment of benefits.”
This is when a homeowner signs a document allowing a contractor to:
- Receive payment directly from the insurance company
- Take control of certain parts of the claim
What’s Changed?
Under the new law:
- Contractors can still be paid directly (as a co-payee on a check)
- But they cannot fully take over your insurance rights
More importantly, any agreement like this now requires:
- A clear breakdown of work and pricing
- A written warning that you are giving up certain rights
- Transparency about what is (and isn’t) guaranteed to be covered
You Now Have a 5-Day “Out”
If you sign an agreement with a contractor after a storm, you now have:
Five business days to cancel it | no penalty
This gives you time to:
- Review the contract
- Talk with your insurance advisor
- Get a second opinion
There is one exception: true emergency repairs needed to prevent further damage (like stopping active water intrusion).
What This Means for You as a Homeowner
This law gives you more protection but it doesn’t replace good decision-making.
Here are a few practical tips:
Do:
- Contact your insurance advisor early in the process
- Get multiple opinions on repair work
- Read every document before signing
Be cautious if a contractor:
- Shows up unsolicited after a storm
- Pushes you to sign something immediately
- Says they’ll “handle everything” with your insurance
- Mentions covering your deductible
Where R&R Insurance Fits In
Storm claims can move quickly, and decisions made in the first few days matter.
Our role is to help you:
- Understand your coverage
- Navigate the claims process
- Avoid costly missteps with contracts or vendors
We’re not here just when things go wrong we’re here to make sure you’re set up correctly before and after a loss.
Final Thought
Not every contractor knocking on your door is a problem but the reality is, some situations can create more risk than homeowners realize.
This new law is a step toward better transparency and protection.
The rest comes down to having the right guidance when you need it.
If you have questions about a recent storm, a claim, or a contractor agreement, our team is here to help.
The 2025 Wisconsin Act 230 was published April 9, 2026 and can be viewed here.
