This story has been updated with a statement from Recon Roofing & Construction.
A Des Moines-based roofing company with locations in the Corridor has reached a consent order with the Iowa Insurance Division following a June cease-and-desist order over alleged unlicensed public adjusting practices.
Recon Roofing & Construction, 455 SW 5th St. in Des Moines, advertised public adjuster services for first-party insurance claims related to roof repairs on its website, identifying a staff member as an adjuster when “none of the listed employees are or have ever been licensed in Iowa as public adjusters,” a court document stated.
“(Recon Roofing’s) page did not indicate whether (employee) is or ever has been licensed as a public adjuster. The page did not provide any details regarding (employee’s) insurance producer licensing status or history,” the document continued.
The consent order mentioned a Coralville home owner who contracted Recon Roofing following tornado damage to their house in March 2023.
The homeowner’s insurance company issued initial payment and repair estimates, but disputes arose when the homeowner hired Recon, who argued for higher costs and additional overhead expenses. Following multiple inspections and revised estimates, the insurance company and Recon reached a tentative agreement that increased the claim’s value. Recon finalized the repairs in June 2023.
According to an Oct. 24 release from the division, the company took steps to address compliance issues after the cease-and-desist order. Recon implemented employee training on Iowa’s public adjusting regulations and made revisions to its website, reflecting efforts to align with state law, the division said in a statement.
“The Iowa Insurance Division has been appreciative of the cooperation by Recon Roofing & Construction in this matter and is pleased that the company’s leadership has taken the appropriate steps in getting into compliance with existing state law,” said Chance McElhaney, COO of the Iowa Department of Insurance and Financial Services. “Iowa’s laws regarding public adjusters are in place to help protect Iowans. Contractors by law may not act as public adjusters on the same property claim and contractors need to fully understand what they can and cannot do.”
Iowa law requires that public adjusters – professionals representing insured parties in property damage claims – be licensed to negotiate or settle on behalf of the property owner.
“It is important for property owners to know that if a disagreement with their insurance company arises over the cost and scope of repairs, the homeowner or a licensed public adjuster, not the contractor doing the work, needs to communicate and negotiate with their insurance company,” the division said.
While contractors may provide damage reports and repair estimates to both the homeowner and the insurer, they are not permitted to negotiate or act on the homeowner’s behalf, continued the division.
Recon Roofing & Construction was one of a handful of contractors that were issued Cease and Desist Orders by the Iowa Insurance Division in June that highlighted numerous instances where the company had been soliciting business by presenting itself to potential customers as contracting for repair and providing public adjuster services in the State of Iowa.
The company has since removed the public adjusting claims from its website.
“The entire situation came from honest mistakes on our part. We were made aware that we didn’t comply with a vaguely written law and immediately changed our marketing and contract,” a spokesman with Recon said in an email. “The state sent over 90 warning letters and a handful of Cease and Desist letters to other contractors in Iowa. We are all not bad actors. We all want to help customers and make our communities better. We want better education and clarity on how we can help customers with respect to these laws.
“We understand and respect that the state is trying to protect homeowners. However, we, and the entire industry, will be closely monitoring Shamrock Roofing’s recent lawsuit against the state to get this poorly written law rewritten to better reflect how the industry operates.”
Kansas-based Shamrock Roofing has an Iowa location and is suing the Iowa Insurance Division, Insurance Commissioner Doug Ommen and Assistant Bureau Chief David Sullivan in U.S. District Court, arguing that the state’s public adjuster law is unconstitutional.
Recon Roofing & Construction has locations in Cedar Rapids, Iowa City, Hiawatha and Marion.
