N.Y. General Business Law § 771-b: Responsibilities of roofing contractors

§ 771-b. Responsibilities of roofing contractors. 1. Every roofing

contractor shall enter into a written contract with an owner pursuant to

all of the provisions of section seven hundred seventy-one of this

article before engaging in the business of roofing, gutter, downspout or

siding services for such owner. In addition, the contract entered into

under this section shall contain the name of the insurer, type of

insurance coverage as required by subdivision nine of this section, and

the insurance policy limits obtained by the roofing contractor.

2. A roofing contractor shall not advertise or promise to pay or

rebate all or any portion of any insurance deductible as an inducement

to the sale of goods or services. As used in this section, a promise to

pay or rebate includes granting any allowance or offering any discount

against the fees to be charged or paying the insured or any person

directly or indirectly associated with the property any form of

compensation, gift, prize, bonus, coupon, credit, referral fee, or other

item of monetary value for any reason.

3. An owner who has entered into a written contract with a roofing

contractor to provide goods or services to be paid under a property and

casualty insurance policy may cancel the contract prior to midnight on

the third business day after the insured party has received written

notice from the insurer that all or any part of the claim or contract is

not a covered loss under the insurance policy. Cancellation occurs when

written notice of cancellation is given to the roofing contractor.

Notice of cancellation, if given by registered or certified mail, shall

be deemed given when deposited in a mailbox properly addressed and

postage prepaid. Notice of cancellation shall be sufficient if it

indicates the intention of the owner not to be bound. Notwithstanding

the foregoing, this subdivision shall not apply to a transaction in

which the owner has initiated the contact and the roofing contract is

needed to meet a bona fide emergency of the owner, and the owner

furnishes the roofing contractor with a separate dated and signed

personal statement in the owner's handwriting describing the situation

requiring immediate remedy and expressly acknowledging and waiving the

right to cancel the roofing contract within three business days. For the

purposes of this subdivision the term "owner" shall mean an owner or any

representative of an owner.

4. Within ten days after a contract referred to in subdivision three

of this section has been cancelled, the roofing contractor shall tender

to the owner any payments, partial payments, or deposits made and any

note or other evidence of indebtedness. If, however, the roofing

contractor has performed any emergency services, acknowledged by the

owner in writing to be necessary to prevent damage to the premises, the

roofing contractor shall be entitled to the reasonable value of such

services. Any provision in a contract referred to in this subdivision

that requires the payment of any fee for anything except emergency

services shall not be enforceable against the owner who has cancelled a

contract pursuant to this section.

5. A roofing contractor shall not require an owner to provide a

deposit for the work and materials. A roofing contractor shall not

mandate that a particular form of payment be made in order to commence

performance of the home improvement. A roofing contractor may invoice

for payment of the materials portion of the project upon delivery of the

materials to the owner of the property. The material cost must be

disclosed to the property owner in writing in advance of payment. A

roofing contractor may invoice the remainder of the project upon

successful completion of all contracted work.

6. A roofing contractor shall not abandon, or fail to perform, without

justification, any roofing contract, nor shall the roofing contractor

deviate from or disregard plans or specifications in any material

respect without the consent of the owner. A roofing contractor shall

abide by the applicable building code for the jurisdiction where the

residential property is located.

7. A roofing contractor shall not fail to pay for materials or

services rendered in connection with a roofing contract where the

contractor has received sufficient funds as payment for the particular

contract for which the services or material were rendered or purchased.

8. A roofing contractor shall not perform the reporting, adjusting, or

negotiating a claim on behalf of the owner and shall not receive

compensation for the referral to any entity that reports, adjusts or

negotiates a claim on behalf of an owner. Nothing herein prevents a

roofing contractor from communicating with an insurance company

representative and sharing his or her technical knowledge when the

insurer initiates the communication.

9. (a) A roofing contractor shall provide to the owner adequate proof

of insurance of the types and amounts set forth in this subdivision:

(1) A certificate of workers' compensation covering all employees of

the roofing contractor. If the roofing contractor does not have any

employees, then the contractor must provide a certificate of attestation

exemption (CE-200) form from the workers' compensation board; and

(2) Certificates of general liability and property damage insurance in

the amount of one hundred thousand dollars per person, three hundred

thousand dollars per occurrence, bodily injury; and fifty thousand

dollars for each occurrence and aggregate, property damage.

(b) The insurance requirements set forth in this subdivision shall

apply to roofing contracts performed in all political subdivisions that

do not contain any insurance requirements for such contracts.