Recon Roofing & Construction, a Des Moines-based contractor, signed a consent order with the Iowa Insurance Division this week after facing allegations of illegally serving as an adjuster for clients’ claims.
According to the Oct. 24 order, Recon has agreed to refrain from helping customers negotiate insurance claims and advertising that the company’s employees can help with those claims. Company officials also agreed to change parts of their customer contract that said Recon would have the ability to negotiate claims with insurance carriers.
A public adjuster is an advocate for customers, representing them in negotiations with insurance companies about how much they will pay to for claims such as storm damage repairs. In Iowa, public adjusters must be licensed and companies can’t act as adjusters and contractors on the same job.
More: Iowa regulator orders adjuster to pay $1.3 million in largest case in state history
As insurance claims have risen in recent years amid an uptick in wind and hail damage, some industry leaders have blamed public adjusters for increasing the amounts insurance companies paid out. As many companies have increased premiums in Iowa, the state regulator has cracked down on contractors this year, warning them that assisting with insurance claims is illegal.