Several states have enacted new consumer protection rules governing restoration contracts in 2026, including requirements for written contracts, itemized estimates, and cancellation rights for disaster-affected homeowners.
The new rules reflect growing concern among state legislators about the vulnerability of disaster-affected homeowners to predatory contracting practices, including high-pressure sales tactics, inflated estimates, and contracts that are difficult to understand or cancel.
For legitimate restoration contractors, the new consumer protection rules create additional administrative requirements but also provide a clearer legal framework for their work. Contractors who already use written contracts and itemized estimates will find compliance relatively straightforward.
The rules typically require that restoration contracts include a clear description of the work to be performed, the materials to be used, the total price, the payment schedule, and the homeowner's right to cancel within a specified period.
Industry organizations have generally supported consumer protection legislation that targets fraudulent contractors while avoiding unnecessary burdens on legitimate businesses. The organizations have worked with state legislators to ensure that new rules are practical and enforceable.
