Pennsylvania's Insurance Agency

Attention All Pennsylvania Home Improvement Contractors!

YOU COULD BE COMMITTING A THIRD DEGREE FELONY IF YOU DON’T KNOW ABOUT THIS!

The Pennsylvania Legislature has passed the “Pennsylvania Home Improvement Consumer Protection Act”, which will go into effect starting July 1, 2009, and will affect home improvement contractors immensely.

Under this act, all contractors in the state of Pennsylvania MUST register with the Bureau of Consumer Protection in the Office of Attorney General.

NO HOME IMPROVEMENT CONTRACT SHALL BE VALID OR ENFORCEABLE AGAINST AN OWNER UNLESS THE CONTRACTOR MAINTAINS THE REQUIRED PROOF OF LIABILITY INSURANCE.

The most essential part of this act is the REQUIRED proof of liability insurance covering personal injury in an amount not less than $50,000 and insurance covering property damage caused by the work of a home improvement contractor in an amount not less than $50,000.

THIS ACT APPLIES TO ALL TYPES OF HOME IMPROVEMENT WORK INCLUDING

- Repair

- Replacement

- Remodeling

- Demolition

- Removal

- Renovation

- Installation

- Alteration

- Conversion

- Modernization

- Improvement

- Rehabilitation

- Sandblasting

THIS ALSO APPLIES TO THE CONSTRUCTION, REPLACEMENT, INSTALLATION, OR IMPROVEMENT OF:

- Driveways

- Swimming Pools

- Pool Houses

- Porches

- Garages

- Roofs

- Siding

- Insulation

- Solar Energy Systems

- Security Systems

- Flooring

- Patios

- Fences

- Gazebos

- Sheds

- Cabanas

- Painting

- Doors, Windows, Waterproofing

There are 2 exceptions to this act:

1. The first exception for a contractor is a person for whom the total cash value of all of that person’s home improvements is less than $5,000 during the previous taxable year.

2. The second exception is a home improvement retailer having a net worth of more than $50,000,000 or an employee of that retailer that does not perform home improvements.

The act defines a contractor as “any person who owns and operates a home improvement business or who undertakes, offers to undertake or agrees to perform any home improvement. The term ‘contractor’ includes a subcontractor or independent contractor who has contracted with a home improvement retailer, regardless of the retailer’s net worth, to provide home improvement services to the retailer’s customers.”

The act basically defines home improvement as work done regarding land or a portion of land neighboring a private residence or building or a portion of a building which is to be used as a private residence for which the total cash price of all work agreed upon between the contractor and owner is more than $500.

Click here to view to printable version of the Pennsylvania Home Improvement Consumer Protection Act (PDF)

Or visit us here

For more information regarding registering or if you would like to discuss your insurance needs, give the people at Florey Insurance Agency a call at 1-800-231-3227 or email us at tflorey@msn.com.

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