In yesterday’s post, When Roofers Become Adjusters: Iowa Court Says Not So Fast, I discussed how Iowa’s federal court confirmed that contractors cannot step into the shoes of licensed public adjusters. The Shamrock case demonstrates that states can draw a distinction between contracting work and claims adjusting. But roofers and restoration contractors often ask me, “Chip, what exactly can we do without being accused of unlicensed public adjusting?”
The answer comes directly from an Iowa Insurance Division administrative decision involving 33 Carpenters Construction, 1 a case that followed the Iowa Supreme Court’s 2020 rulings. In that proceeding, the Insurance Commissioner provided a clear statement of what contractors may do without violating the law. As the order states:
33 Construction and its agents, representatives, employees and officers may perform any of the following acts without violating Iowa Code § 522C.6:
(1) Solicit and offer repair or reconstruction services to homeowners or business owners;
(2) Offer opinion to an insured homeowner or business owner as to whether damage was caused by wind, hail, storm or other incident normally covered by an insurance policy;
(3) Prepare an estimate and scope of work for the loss;
(4) Discuss with the customer the estimate or scope of work;
(5) Recommend to an insured homeowner or business owner that the policyholder file an insurance claim with their insurer;
(6) Attend any inspection of the damage by an insurer’s adjuster; and
(7) Answer questions the policyholder or the insurer’s adjuster has about the estimates.
This list is significant because it outlines the permissible boundaries of contractor and roofer involvement in the claims process. A roofer can tell a homeowner that the damage looks like hail damage, prepare a detailed estimate, and even attend the insurer’s inspection. They can recommend that the homeowner file a claim and answer questions about their estimate. What they cannot do is negotiate with the insurer, advocate for coverage, or present themselves as an insured’s representative in the claims settlement process. Those actions fall squarely within the domain of licensed public adjusters.
The 33 Carpenters administrative order is a practical guidepost. It recognizes that contractors inevitably interact with insurance issues when repairing storm damage, but it draws a firm line at claims advocacy and negotiation. That distinction reflects the state’s consumer protection policy that contractors may repair and provide information, but only licensed public adjusters may represent and negotiate.
For contractors, I suggest this means training staff carefully to avoid crossing the line. Sales representatives and project managers must understand that while they can discuss the scope of repair work and provide their professional opinion about the cause of damage, they cannot speak on behalf of the homeowner in the claims process. For public adjusters, this decision confirms the exclusive nature of their role and the protections around their profession. For regulators, the order provides clarity for enforcement, ensuring that consumer protection goals are met without preventing contractors from doing their legitimate work.
The simple lesson is that roofers and restoration contractors can operate confidently within their lane if they stick to estimates, repairs, and factual opinions about damage and costs. The moment they begin to negotiate with insurers, hold themselves out as claim representatives, or advertise public adjusting-type services, they cross into public adjusting and expose themselves to enforcement.
For my restoration construction and roofing friends, I know that nobody likes being told they cannot do certain things. I can appreciate that many have a very different view of this and think that this law simply protects insurance companies and public adjusters while harming those doing the repair work.
As a lawyer, I have to explain the law and ask that everyone follow it. What kind of country would this be if nobody had to follow laws and nobody was held accountable? This administrative matter at least provides guidance about what can be done without violating public adjusting licensing laws, and is the reason for the post.
Thought of the Day
“Clarity affords focus.”
—Thomas Leonard
1 In the Matter of 33 Carpenters Construction, No. 105269, 2021 WL 1717542 (Iowa Sec.Bur. Apr. 19, 2021).