Short answer: In Minnesota, roofing and siding contractors can't offer to pay or rebate your insurance deductible under Minn. Stat. §325E.66. Under §326B.811, you can cancel an insurance-funded roofing contract within 72 hours after your insurer denies the claim. Before signing anything after a storm, check the contractor's license with the Department of Labor and Industry.
Deductible rebates are illegal
Minn. Stat. §325E.66 bars a residential roofer, contractor, remodeler or siding contractor from advertising or promising to pay any part of your insurance deductible, or paying you for any "service" as an inducement. If a contractor does, your insurer doesn't have to consider that contractor's estimate.
Your 72-hour cancellation right
Under Minn. Stat. §326B.811, if you sign a contract with a roofer to be paid from insurance proceeds, you can cancel it in writing within 72 hours after the insurer notifies you that the claim is denied. The contractor must return payments within 10 days, though it can be paid for emergency services already performed.
Watch for "price agreeable" contracts
The Department of Labor and Industry's storm repair page warns that the "authorization" a contractor asks you to sign is often a binding price agreeable contract. It lets the contractor negotiate with your insurer and do all the covered work. Canceling for reasons other than a denial can bring a fee, often 20% to 30% of claim proceeds, according to DLI. Choose your contractor before you sign.
Claim steps from the Department of Commerce
The Commerce Department's disaster guide recommends:
- [ ] Report the loss to your insurer right away and keep a call log.
- [ ] Photograph damage and make only temporary repairs until the adjuster inspects.
- [ ] Don't throw away damaged property until the adjuster says it's OK.
- [ ] Check the contractor's license and discipline history with DLI, ask for a local address, and avoid upfront payment or pressure.
Commerce also notes that Minnesota's Contractor Recovery Fund caps payouts at $75,000 per licensed contractor, shared among claimants. Ask about a performance bond on large jobs.
Bottom line
Don't sign at the door. Pick a licensed contractor, never accept a deductible rebate, and know your 72-hour right if the claim is denied. See hail storms by state.
Questions? Contact Alishahi Insurance or call (877) 711-4545. Vea insurance in Minnesota.
Frequently asked questions
Can a Minnesota roofer pay my insurance deductible?
No. Minn. Stat. 325E.66 prohibits contractors from offering to pay or rebate your deductible.
Can I cancel a roofing contract if my claim is denied?
Yes, within 72 hours after your insurer notifies you of the denial, under Minn. Stat. 326B.811.
What is a price agreeable contract?
A binding contract letting the contractor negotiate scope and price with your insurer and do the covered work.
How do I check a Minnesota contractor's license?
Through the Minnesota Department of Labor and Industry.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.