Wisconsin 2025 Regular Session Status: To Executive Bipartisan · 2 R · 2 D cosponsors

SB 531 — Relating to: postloss assignment of rights or benefits under property insurance policies to residential contractors and providing a penalty. (FE)

Last action — Published 4-9-2026

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill has been sent to the executive. Introduced October 09, 2025. It awaits signature.

Next likely step: the executive signs it into law or issues a veto.

Prognosis

Likely to advance 90% · high confidence

Where this bill stands today.

Odds of enactment

Moderate

How often bills like it became law.

  • To Executive

    Current position in the legislative process.

  • 8 sponsors

    1 primary, 7 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (2 R · 2 D) — cross-party backing.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

An Act to create 632.11 of the statutes;

Bill Text

What changed in the latest version

281 added · 46 removed

Plain-language change summary

The amendments to SB 531 make a few important adjustments regarding how residential contractors can operate under property insurance policies after damage occurs. Notably, it clarifies that residential contractors can provide additional related services beyond just tree repair. It also streamlines the language around emergency situations, defining when contractors can begin work without going through the usual cancellation rights of property owners. These changes help ensure that necessary repairs are made more quickly and clearly outline what contractors can offer, which is crucial during emergencies when timely action can prevent further damage.

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- 2026 LEGISLATURE LRBa0547/1 EKL:skw SENATE AMENDMENT 1, TO SENATE BILL 531 October 24, 2025 - Offered by SenaELZKOWSKI .
- 2026 LEGISLATURE LRB-3605/1 JPC:cjs&wlj SENATE BILL 531 October 9, 2025 - Introduced by Senators F ELZKOWSKI , NASS, DASSLER-A LFHEIM and S PREITZER, cosponsored by Representatives C ALLAHAN , M URPHY , P IWOWARCZYK and D ITTRICH.
At the locations indicated, amend the bill as follows:
Referred to Committee on Insurance, Housing, Rural Issues and Forestry.
A N A CT to create 632.11 of the statutes;
relating to:
postloss assignment of rights or benefits under property insurance policies to residential contractors and providing a penalty.
Analysis by the Legislative Reference Bureau This bill establishes certain requirements and restrictions on the assignment to residential contractors of postloss rights and benefits under property insurance policies.
Under the bill, “residential contractor” is defined to mean a person who is in the business of contracting to repair or replace residential roof systems or to perform any other repair, replacement, or reconstruction work to address damage to residential real estate caused by a catastrophe or a person who offers to contract with an owner or possessor of residential real estate to carry out such work.
“Residential contractor” includes a person who is in the business of contracting to remove trees, repair trees, or provide other related services.
Under the bill, “catastrophe” means a natural occurrence that damages or destroys residential real estate and includes fires, floods, hail storms, tornadoes, windstorms, and any other naturally occurring weather event for which the governor declares a state of emergency.
First, the bill prohibits residential contractors from advertising or promising to rebate any insurance deductible or any portion of an insurance deductible as an inducement to the sale of goods or services.
The bill further provides that no residential contractor may represent or negotiate on behalf of, or offer or advertise - 2026 Legislature - 2 - LRB-3605/1 JPC:cjs&wlj SENATE BILL 531 to represent or negotiate on behalf of, an owner or possessor of residential real estate for any insurance claim in connection with the repair or replacement of roof systems or the performance of any other exterior repair, exterior replacement, or exterior reconstruction work on the residential real estate.
Any residential contractor contracting to provide goods or services to repair damage resulting from a catastrophe must provide certain written disclosures either prior to or contemporaneously with entering into the contract.
Second, the bill provides that any postloss assignment of rights or benefits under a property insurance policy insuring residential real estate by a named insured to a residential contractor is subject to certain restrictions and must meet certain criteria.
For example, the bill provides that any such postloss assignment must include an itemized description of the work to be performed, an itemized description of the materials, labor, and any fees for the work to be performed, and a total amount to be paid for the work to be performed.
The bill also provides that the named insured for any such postloss assignment has the right to cancel the assignment for any reason within five business days.
The bill requires any such assignment to include certain written disclosures of this right.
Further, the bill prohibits a residential contractor from accepting an assignment of rights or benefits under a property insurance policy insuring residential real estate unless the contractor may obtain a building permit for the work to be performed under current law.
The bill provides that a contract entered into with a residential contractor is void if the residential contractor violates any provision of the bill.
If a residential contractor violates any provision of the bill, the commissioner of insurance may, after notice and hearing conducted pursuant to current law, impose a forfeiture not to exceed $10,000 per violation.
Additionally, if the commissioner of insurance has reason to believe that a residential contractor is violating any provision of the bill, the commissioner, the attorney general, or the district attorney of the proper county may investigate and may, in addition to any other remedies, bring an action in the name and on behalf of this state to enjoin the residential contractor from the violation.
Finally, the bill creates and restricts certain legal rights that result from the assignment of postloss rights or benefits under a property insurance policy insuring residential real estate by a named insured.
If a residential contractor accepts a postloss assignment, the residential contractor must pursue payment only from the property insurance company until all legal rights against the property insurance company are exhausted.
If a named insured grants a postloss assignment of rights or benefits under a property insurance policy to a residential contractor, the property insurance company must automatically, by operation of law and without further action by any party, receive an assignment of the named insured’s rights against the residential contractor under the terms of the contract with the residential contractor and under state law.
A named insured who grants a postloss assignment of rights or benefits under a property insurance policy to a residential contractor may not pursue any noncontractual claims against the property insurance company.
A residential contractor who accepts a postloss assignment of - 2026 Legislature - 3 - LRB-3605/1 JPC:cjs&wlj SENATE BILL 531 S ECTION 1 rights or benefits under a property insurance policy insuring residential real estate may pursue a noncontractual claim against the property insurance company only if the conduct that the claim is based on occurred before the assignment and is related to the loss for which the work is being performed.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
S ECTION 1.
632.11 of the statutes is created to read:
632.11 Residential contractors and postloss assignment of rights or benefits.
(1) In this section:
(a) “Catastrophe” means a natural occurrence that damages or destroys residential real estate.
“Catastrophe” includes any of the following:
Page 4, line 2:
Earthquake.
after XworkY insert X, or provide other related services,Y.
Page 4, line 5:
Fire.
delete the material beginning with Xtrees, repair trees,Y and ending with Xcatastrophe.Y on line 6 and substitute Xor repair trees.Y.
Page 4, line 8:
Flood.
delete Xone to 4Y and substitute Xone or 2Y.
Page 7, line 2:
Hail storm.
Show all 108 changed rows (68 more)
Previous
Latest
delete XCONDITIONS FORY and substitute XCONDITIONS OFY.
Page 8, line 6:
Tornado.
delete XThe namedY and substitute XSubject to sub.
(3c), the namedY.
Page 8, line 13:
Windstorm.
after that line insert:
7.
X(3c) (a) In this subsection, Xemergency situationY means a situation in which - 2026 Legislature - 2 - LRBa0547/1 EKL:skw repair or other work is necessary to prevent imminent danger to life or safety, or to stop substantial, imminent damage to property, and in which the residential contractor reasonably determines that delay of the repair or other work would create or worsen the threat of imminent danger or damage.
Any naturally occurring weather event for which the governor declares a state of emergency under s.
(b) A named insured does not have a right to cancel under sub.
323.10.
(3) (h) if an emergency situation occurs and all of the following conditions are met:
(am) “Postloss assignment” means a written transfer of any claim, right, or benefit under a property insurance policy after a covered loss has occurred, including a right to payment for repairs or services.
(b) “Residential contractor” means a person who is in the business of - 2026 Legislature - 4 - LRB-3605/1 JPC:cjs&wlj SENATE BILL 531 SECTION 1 contracting to repair or replace residential roof systems or to perform any other repair, replacement, or reconstruction work to address damage to residential real estate caused by a catastrophe or a person who offers to contract with an owner or possessor of residential real estate to carry out such work.
“Residential contractor” includes a person who is in the business of contracting to remove trees, repair trees, or provide other related services to address damage caused by a catastrophe.
(c) “Residential real estate” means a new or existing building, including a detached garage, constructed for habitation by one to 4 families.
(d) “Roof system” includes roof coverings, roof sheathing, roof weatherproofing, and roof insulation.
(2) (a) No residential contractor may advertise or promise to rebate any insurance deductible or any portion thereof as an inducement to the sale of goods or services.
A promise to rebate any insurance deductible includes granting any allowance, offering any discount, waiver, or reduction against the fees to be charged for goods or services, or providing or paying any person directly or indirectly associated with the residential real estate any form of compensation, except for items of nominal value.
This paragraph shall not be construed to prohibit a residential contractor from displaying a sign or other type of advertisement on a person’s premises provided that the person consents to the display and the person receives no compensation from the residential contractor for the placement of the sign or other type of advertisement.
(b) No residential contractor may represent or negotiate on behalf of, or offer or advertise to represent or negotiate on behalf of, an owner or possessor of residential real estate for any insurance claim in connection with the repair or - 2026 Legislature - 5 - LRB-3605/1 JPC:cjs&wlj SENATE BILL 531 SECTION 1 replacement of roof systems, or the performance of any other exterior repair, exterior replacement, or exterior reconstruction work on the residential real estate.
(c) 1.
A residential contractor contracting to provide goods or services to repair damage resulting from a catastrophe shall provide the person with whom the residential contractor is contracting a fully completed duplicate notice in at least 10 point bold type that contains the following statement:
NOTICE OF CONTRACT OBLIGATIONS AND RIGHTS You may be responsible for payment to (insert name of residential contractor) for the cost of all goods and services provided whether or not you receive payment from any property insurance policy with respect to the damagePursuant to Wisconsin law your contract with (insert name of residential contractor) to provide goods and services to repair damage resulting from a naturally occurring catastrophe is void and you have no responsibility for payment under the contract if (insert name or residential contractor) either advertises or promises to rebate all or any portion of your insurance deductible, or represents or offers to represent you, or negotiates or offers to negotiate on your behalf, in any interaction with your property insurance company regarding any insurance claim relating to the damage you have contracted to have repaired.
Your signature below acknowledges your understanding of these legal obligations and rights.
.................................................................
Date .................................................................
Signature 2.
The notice under subd.
The residential contractor provides written notice to the named insured describing the emergency situation and the basis for treating it as such.
shall be executed by the person with whom the - 2026 Legislature - 6 - LRB-3605/1 JPC:cjs&wlj SENATE BILL 531 SECTION 1 residential contractor is contracting prior to or contemporaneously with entering into a contract to provide goods or services to repair damage resulting from a catastrophe.
(3) A postloss assignment of rights or benefits under a property insurance policy insuring residential real estate by a named insured to a residential contractor is subject to all of the following:
(a) The assignment may authorize a residential contractor only to be named as a copayee for the payment of benefits under the property insurance policy for work performed by the contractor.
(b) The assignment shall include all of the following:
1.
An itemized description of the work to be performed.
The named insured acknowledges, in writing, the necessity to commence work promptly to address the emergency situation, except that acknowledgment is not required if delay would create an imminent risk to safety.
An itemized description of the materials, labor, and any fees for the work to be performed.
The residential contractor limits work to the minimum reasonably required to mitigate the emergency situation.
A total amount to be paid for the work to be performed.
Any work beyond the minimum reasonably required to mitigate the emergency situation shall be authorized in a separate written agreement between the residential contractor and the named insured.
(c) The assignment shall include a statement that the residential contractor has made no assurances that the claimed loss will be fully covered under the property insurance policy and shall include the following notice in capitalized 14- point type:
4.
YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER YOUR PROPERTY INSURANCE POLICY.
The residential contractor documents and retains records related to the emergency situation, including the actions taken by the residential contractor and the basis for the residential contractor[s determination of the emergency situation.Y.
PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE SIGNING.
7.
THE ITEMIZED DESCRIPTION AND PRICING OF THE WORK TO BE DONE SHOWN IN THIS ASSIGNMENT FORM HAS NOT BEEN AGREED TO BY THE INSURER.
Page 8, line 14:
THE INSURER HAS THE RIGHT TO PAY FOR LOSS - 2026 Legislature - 7 - LRB-3605/1 JPC:cjs&wlj SENATE BILL 531 SECTION 1 SUBJECT TO THEIR ASSESSMENT AND ACCORDING TO THE TERMS AND CONDITIONS FOR THE INSURANCE POLICY ONLY FOR THE COST TO REPAIR OR REPLACE DAMAGED PROPERTY CAUSED BY A COVERED PERIL.
delete lines 14 to 17.
(d) The assignment shall include the following notice in capitalized 14-point type located in the immediate proximity of the space reserved in the assignment for the signature of the named insured:
8.
YOU MAY CANCEL THIS ASSIGNMENT WITHOUT PENALTY WITHIN FIVE (5) BUSINESS DAYS FROM THE DATE THAT THE ASSIGNMENT IS EXECUTED OR THE DATE ON WHICH YOU RECEIVE A COPY OF THE EXECUTED ASSIGNMENT, WHICHEVER IS LATER.
Page 8, line 20:
YOU MUST CANCEL THE ASSIGNMENT IN WRITING AND THE CANCELLATION MUST BE DELIVERED TO (name and address of residential contractor as provided by the residential contractor).IF MAILED, THE CANCELLATION MUST BE POSTMARKED BEFORE THE FIVE (5) BUSINESS DAY DEADLINE.
delete the material beginning with XshallY and ending with XcompliesY on line 21 and substitute Xthat includes an assignment of rights or benefits provision shall complyY.
IF YOU CANCEL THIS ASSIGNMENT, THE RESIDENTIAL CONTRACTOR HAS UP TO TEN (10) BUSINESS DAYS TO RETURN ANY PAYMENTS OR DEPOSITS MADE.
- 2026 Legislature - 3 - LRBa0547/1 EKL:skw 9.
(e) The assignment shall not be construed to impair the interest of a mortgagee listed on the declarations page of the property insurance policy that is the subject of the assignment.
Page 9, line 8:
(f) The assignment shall not be construed to prevent or inhibit an insurer from communicating with the named insured or mortgagee listed on the - 2026 Legislature - 8 - LRB-3605/1 JPC:cjs&wlj SENATE BILL 531 SECTION 1 declarations page of the property insurance policy that is the subject of the assignment.
delete X$10,000Y and substitute X$5,000Y.
(g) The residential contractor shall provide a copy of the executed assignment to the insurer of the residential real estate within 5 business days following the date that the assignment is executed.
10.
(h) The named insured has the right to cancel the assignment for any reason within 5 business days following the date that the assignment is executed or the date on which the named insured receives a copy of the executed assignment, whichever is later.
Page 10, line 10:
The cancellation must be made in writing.
delete X4thY and substitute X8thY.
Within 10 business days following the date that the named insured cancels the assignment under this paragraph, the residential contractor shall tender to the named insured, the land owner, or the possessor of the real estate any payments, partial payments, or deposits that have been made by the named insured, land owner, or possessor.
(END )
(3m) No residential contractor may accept an assignment of rights or benefits under a property insurance policy insuring residential real estate unless the residential contractor may obtain a building permit for the work to be performed under s.
101.654 (1) (a).
(4) Any contract, repair estimate, or work order prepared by a residential contractor to provide goods or services to be paid from the proceeds of a property insurance policy shall be accompanied by an assignment of rights or benefits under the policy that complies with the requirements under sub.
(3), which assignment shall be signed by the named insured and sent to the named insured’s property insurance company prior to payment of any proceeds under the applicable property insurance policy.
- 2026 Legislature - 9 - LRB-3605/1 JPC:cjs&wlj SENATE BILL 531 SECTION 1 (5) (a) A contract entered into with a residential contractor is void if the residential contractor violates any provision of this section.
(b) 1.
A residential contractor offering to provide services in this state is subject to ss.
601.41, 601.42, 601.61, 601.63, and 601.64, except that any forfeitures or penalties shall be in the amounts specified in subd.
2.
2.
If a residential contractor violates any provision of this section, the commissioner may, after notice and hearing conducted in accordance with s.
601.62, impose a forfeiture not to exceed $10,000 per violation.
(c) If the commissioner has reason to believe that any residential contractor is violating any provision of this section, the commissioner, the attorney general, or the district attorney of the proper county may investigate and may, in addition to any other remedies, bring an action in the name and on behalf of this state to enjoin the residential contractor from the violation.
(6) (a) If a residential contractor accepts a postloss assignment of rights or benefits under a property insurance policy insuring residential real estate by a named insured, the residential contractor shall pursue payment only from the property insurance company until all legal rights against the property insurance company are exhausted.
(b) If a named insured grants a postloss assignment of rights or benefits under a property insurance policy to a residential contractor, the property insurance company shall automatically, by operation of law and without further action by any party, receive an assignment of the named insured’s rights against the residential contractor under the terms of the contract with the residential contractor and under state law.
- 2026 Legislature - 10 - LRB-3605/1 JPC:cjs&wlj SENATE BILL 531 SECTION 1 (c) A named insured who grants a postloss assignment of rights or benefits under a property insurance policy to a residential contractor may not pursue any noncontractual claims against the property insurance companyA residential contractor who accepts a postloss assignment of rights or benefits under a property insurance policy insuring residential real estate may pursue a noncontractual claim against the property insurance company only if the conduct that the claim is based on occurred before the assignment and is related to the loss for which the work is being performed.
S ECTION 2.
Effective date.
(1) This act takes effect on the first day of the 4th month beginning after publication.
(END)
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Action History

  1. Published 4-9-2026

  2. Report approved by the Governor on 4-8-2026. 2025 Wisconsin Act 230

  3. Presented to the Governor on 4-2-2026

  4. Representative Emerson added as a cosponsor

  5. Representative Brown added as a cosponsor

  6. Report correctly enrolled

  7. LRB correction

  8. Received from Assembly concurred in

  9. Ordered immediately messaged

  10. Read a third time and concurred in

  11. Rules suspended

  12. Ordered to a third reading

  13. Read a second time

  14. Rules suspended to withdraw from calendar and take up

  15. Placed on calendar 1-13-2026 by Committee on Rules

  16. Read first time and referred to committee on Rules

  17. Received from Senate

  18. Ordered immediately messaged

  19. Read a third time and passed

  20. Rules suspended to give bill its third reading

  21. Ordered to a third reading

  22. Senate Amendment 2 adopted

  23. Senate Amendment 1 adopted

  24. Read a second time

  25. Placed on calendar 11-18-2025 pursuant to Senate Rule 18(1)

  26. Available for scheduling

  27. Report passage as amended recommended by Committee on Insurance, Housing, Rural Issues and Forestry, Ayes 5, Noes 0

  28. Report adoption of Senate Amendment 2 recommended by Committee on Insurance, Housing, Rural Issues and Forestry, Ayes 5, Noes 0

  29. Report adoption of Senate Amendment 1 recommended by Committee on Insurance, Housing, Rural Issues and Forestry, Ayes 5, Noes 0

  30. Executive action taken

  31. Senate Amendment 2 offered by Senator Felzkowski

  32. Public hearing held

  33. Senate Amendment 1 offered by Senator Felzkowski

  34. Fiscal estimate received

  35. Read first time and referred to Committee on Insurance, Housing, Rural Issues and Forestry

  36. Introduced by Senators Felzkowski, Nass, Dassler-Alfheim and Spreitzer; cosponsored by Representatives Callahan, Murphy, Piwowarczyk and Dittrich

Sponsors

Sponsorship breakdown

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1 sponsors · 7 co-sponsors · 124 not signed on

Sponsors (1)

Co-sponsors (7)

Not signed on (124)

124 members have not signed on to this bill.

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Frequently asked questions

What does SB 531 do?
An Act to create 632.11 of the statutes;
Who sponsors SB 531?
SB 531 is sponsored by Callahan, Murphy, Piwowarczyk, Dittrich, Felzkowski, Mary (Republican), Nass, Steve (Republican), Dassler-Alfheim, Kristin (Democrat), and Spreitzer, Mark (Democrat).
What is the current status of SB 531?
This bill has been sent to the executive. Introduced October 09, 2025. It awaits signature.
Where can I track SB 531?
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