SB 402: Residential property owners; insurance policies, roofing services by contractors. - Virginia

Subcommittee #2 Subcommittee Substitute → Engrossed · 8 edits · Mar 30, 2026

MODERATE

The Engrossed version of SB 402 makes several substantive changes from the House Substitute: it expands roof-age insurance protections from asphalt shingle roofs to all roof types, adds a prohibition on premium increases based solely on roof age or condition, removes exceptions that allowed insurers to deny coverage for damaged roofs, and adds a new prohibition on contractors interpreting insurance policy provisions or adjusting claims on behalf of homeowners. These changes significantly strengthen consumer protections in both the insurance and roofing contractor contexts.

SCOPE

Roof age insurance protections in Section 38.2-2114(K) were expanded from applying only to 'asphalt shingle roofs' to all 'roofs,' broadening coverage to metal, tile, flat, and other roof types.

REQUIREMENT

Insurers are now prohibited from increasing premiums of an owner-occupied dwelling policy solely based on the age or condition of the roof (previously only refusal to issue, cancel, or refuse to renew was prohibited).

A new prohibited practice was added in Section 59.1-615(B)(4): contractors may not interpret policy provisions, advise homeowners on coverages or duties under their property insurance policy, or adjust a property insurance claim on behalf of the homeowner. This explicitly bans contractor acts that could be considered unauthorized public adjusting.

The required disclosure about deductible rebates in Section 59.1-615(B)(1)(iii) now includes the phrase 'and with the intent injure, defraud, or deceive,' adding an intent element to the prohibited conduct description.

ELIGIBILITY

Subsections K.5 and K.6 were removed entirely. K.5 had allowed insurers to deny coverage for roofs with unrepaired damage, material defects, or deterioration even if the roof met the age threshold. K.6 had narrowly defined 'refuse coverage' as only the base policy. Their removal means the roof-age protections are broader and less subject to insurer exceptions.

DEFINITION

The required disclosure language in Section 59.1-615(B)(1)(ii) was changed from referencing 'the unauthorized practice of public adjusting, as defined in Section 38.2-1845.1' to a more specific description: 'soliciting, preparing, negotiating, or completing an insurance claim on behalf of a residential property owner.'

A new bracketed (Senate amendment) definition of 'Prohibited advertisement' was added in Section 59.1-614, defining it as written or electronic communications (door hangers, business cards, magnets, flyers, pamphlets, email) that encourage, instruct, or induce a homeowner to contact a contractor for an insurance claim. Notably, telephone calls are excluded from this definition.

The existing 'Advertisement' definition in Section 59.1-614 was modified (bracketed/Senate amendment) to change 'could be reasonably interpreted to encourage' to 'could be reasonably interpreted as trying to encourage,' and 'magnet flyer' was split into 'magnet, flyer' with 'phone call' changed to 'telephone call.'

Enrolled → Chaptered · 2 edits

MINOR

The bill was formally enacted into law as Chapter 658 of the 2026 Virginia Acts of Assembly. The primary substantive change is the addition of a specific approval date, April 13, 2026, which establishes when the new regulations regarding residential roofing contractors and consumer protection officially take effect.

Scope change

The bill's scope remains focused on residential property owners, insurance policies, and roofing services, but its legal status has shifted from a proposed bill to an active law.

TIMELINE

Added the specific approval date of April 13, 2026, to the text of the act.

TECHNICAL

Changed the session header from 'Enrolled' to 'Chapter 658' to reflect the bill's final passage and enactment status.

Introduced → Labor and Commerce Substitute · 6 edits

MODERATE

This bill amends Virginia's roofing laws to specifically protect homeowners with asphalt shingle roofs from being denied coverage or charged higher premiums based on roof age or condition, provided the roof has significant useful life remaining. It also clarifies contractor obligations regarding insurance deductibles and adds a new definition for 'advertisement' to regulate how contractors solicit insurance claims.

Scope change

The bill's scope was narrowed to specifically apply only to 'asphalt shingle roofs' rather than all roof types, and it added a specific exception allowing insurers to deny coverage for roofs with unrepaired damage or structural issues.

ELIGIBILITY

Restrictions on denying coverage or raising premiums based on roof age or condition now apply only to asphalt shingle roofs, removing protections for other roofing materials.

DEFINITION

Added a new definition for 'Advertisement' to explicitly include door hangers, business cards, magnets, flyers, phone calls, and emails used to solicit insurance claims.

REQUIREMENT

Updated contractor requirements to reference the specific legal definition of 'public adjusting' in § 38.2-1845.1 instead of a general description.

Added a new provision stating that insurers cannot deny coverage solely because a roof has unrepaired damage, material defects, or structural concerns if those issues are cured by the homeowner.

Added a clarification that insurers are not required to offer optional coverages or endorsements, but cannot remove them or increase deductibles just to avoid complying with the new age/condition rules.

Updated the definition of 'authorized inspector' to specify that inspections apply to 'owner-occupied dwelling insurance policies' rather than just 'homeowner's insurance policies'.

Labor and Commerce Substitute → Subcommittee #2 Subcommittee Substitute · 1 edit

MINOR

The bill text was reformatted from a standard legislative layout to a House-submitted substitute version, which includes a new page number and a 'House Substitute' header. The substantive policy language regarding insurance cancellation rules, roofing contractor protections, and prohibited practices remains identical to the original version.

TECHNICAL

The document layout was changed to include a 'House Substitute' header and a new page number (26108168D), indicating this is a revised version submitted by the House committee. The actual legal text and policy provisions have not been altered.

Engrossed → Enrolled · 1 edit · Mar 31, 2026

MINOR

The bill was finalized as an enrolled act, changing its status from a draft proposal to law. The substantive policy content regarding insurance cancellation rules, prohibited contractor practices, and consumer protections remains identical to the engrossed version, with no new provisions added or removed.

Scope change

The bill's scope and applicability remain unchanged; the only difference is the formal transition from a legislative draft to an enacted law.

TECHNICAL

The document format changed from a draft 'Engrossed' version to a formal 'Enrolled' version, indicating the bill has been approved by both houses of the legislature and the Governor.

Residential property owners; insurance policies, roofing services by contractors.

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