A residential contractor providing home improvement or repairs cannot compensate a homeowner by paying his or her insurance deductibles in exchange for the homeowner hiring the contractor to do work covered by insurance.
This is outlined in a new law that expands a trade practices law already in place, which had previously banned only contractors doing repair or replacement of residential roofing or siding from offering to make those payments.
The law is effective Aug. 1, 2012. Rep. Joe Hoppe (R-Chaska) and Sen. Gary Dahms (R-Redwood Falls) are the sponsors.
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