By Michael Giardina, Property Damage Insurance Attorneys
When a hurricane, fire or hailstorm hits, homeowners across Louisiana turn to contractors to help assess the damage and get their property repaired fast. For years, many reputable contractors have assisted clients not just with repairs, but providing quotes so homeowners can negotiate with the insurance company on their claim. That relationship, however, is about to change slightly with the signing of HB 121 into law by Governor Jeff Landry.
At Godbey Giardina Law Group, we represent policyholders and victims of property damage across the state. We believe it’s important for both contractors and homeowners to understand the major shift this law represents—and the real risks it poses to legitimate businesses operating in the claims process. Although the bill makes some real-world changes for contractors in the insurance industry, it has the potential to help with transparency between the homeowner and contractor’s provided services in an insurance claim.
What HB 121 Does
Signed into law on June 8, 2025 and effective August 1, 2025, HB 121 (now Act 144) makes the following changes to Louisiana Revised Statute 37: 2159.1, for person or companies performing contracting services regarding property insurance claims:
- Prohibits providing an insured with a repair or construction agreement without a good faith, itemized estimate of costs of service and materials for repair. However, the good faith estimate and final costs of repairs can differ due to insurer adjustment in scope and not constitute a violation.
- Contractors are also liable for their employees or compensated representatives' actions
- Prohibits advertising or soliciting as insurance claims specialist
- Prohibits advertising or soliciting as providing any insurance claim or policy interpretation related services to an insured.
Contractors should familiarize themselves with the entirety of LA R. S. 37:2159.1 https://www.legis.la.gov/legis/Law.aspx?d=1297028
HB 121 also added to Louisiana Revised Statutes 22:1706, prohibiting public adjusters from acting as contractors or performing repairs in connection with insurance claims the adjuster has processed.
Why Contractors Should Be Aware
This law is a disruption to the way contractors have legally supported homeowners in crisis in Louisiana. Its impact could have a dampening effect on legitimate construction businesses providing services to those in need. However, the new law is similar to those implemented in states like Florida, that help transparency between homeowners and contractors and the services they intend to perform, but contractors need be aware and change their processes to provide homeowners the appropriate information up front.
What You Can Do
If you're a contractor:
- Review your advertising, contracts, and intake processes immediately.
- Provide a breakdown of the estimated services you intend to offer in your contract.
- Avoid interpreting policies or giving claim-related advice.
- Document all communication and clarify your role is limited.
If you're a homeowner:
- Understand that contractors may now be limited in the support they can offer.
- Contractors must provide you with a good faith initial estimated cost of services and materials
- Contact an attorney or licensed public adjuster if you need assistance navigating your insurance claim.
We’re Here to Help
At Godbey Giardina Law Group, we represent policyholders navigating Louisiana’s complex insurance landscape. If you have questions about HB 121 or need legal guidance on your rights and responsibilities, we’re ready to fight for you. You can check out the full version of HB 121. Here
Knowing your rights under an insurance claim, always starts with your policy. Click here is a free AI policy analysis to better understand your policy.
