In early May, Weston Farnes, a contractor with Arizona-basedTrue-Built Construction, was ordered to stop acting as an insuranceadjuster without a license.

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The order, issued by the Arizona Department of Insurance (ADOI),came after one of Farnes’ clients signed an authorization allowingFarnes to represent the homeowner in negotiations with thehomeowner’s insurer.

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Though a contractor’s expertise is commonly used to determinethe specifics of damages, contractors do not have the ability tonegotiate the settlement of an insurance claim on behalf of theproperty owner without an adjuster’s license.

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A hail storm that hit the Phoenix valley in Oct. 2010 generatedmore than 100,000 homeowners insurance claims in just one day. Thislarge number is said to have cause an influx in out-of-statebuilding contractors, those unfamiliar with the ADOI requirements,because of the large amount of work that would need to becompleted.

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