Why This Distinction Matters More in Minnesota Than Almost Anywhere

After every significant hail storm in the Twin Cities, roofing contractors — local and out-of-state — begin working neighborhoods door to door. Many of them say things that sound helpful and reasonable. Some of what they offer is genuinely helpful. Some of it is illegal. And some of it, if you agree to it, exposes you to liability alongside the contractor.

Minnesota has specific statutes that define exactly what a roofing contractor can and cannot do in connection with an insurance claim. This guide covers those boundaries plainly — what's allowed, what's prohibited, what the penalties are, and what you should expect from a contractor who operates within the law.

This is not legal advice. For guidance specific to your situation, consult a licensed attorney or the Minnesota Department of Commerce.

The Short Version: Can vs. Can't

What Minnesota Law Says: § 325E.66

The primary statute governing contractor conduct in insurance-funded roofing work is Minnesota Statute § 325E.66. It is enforced by the Minnesota Department of Labor and Industry.

The Deductible: Your Responsibility, Not the Contractor's

Your insurance deductible is your legal and financial responsibility. It cannot be waived, paid, absorbed, or offset by a roofing contractor — in any form, under any framing. This applies to:

• Direct payment: "We'll cut you a check for your deductible."
• Inflated pricing: Padding the bid to the insurer to "recover" the deductible through inflated materials or labor costs.
• Fake discounts: Applying a "discount" equal to your deductible amount after the claim is approved.
• Gift cards or other compensation: Offering anything of value in connection with a claim-funded contract is covered by the same prohibition.

Any arrangement where you effectively do not pay your deductible out of pocket is prohibited under § 325E.66, regardless of how it's structured or described. If a contractor offers any version of this, they are asking you to participate in something that violates Minnesota law.

What a Public Adjuster Does — and Why It's Different

The activities that a roofing contractor cannot perform — negotiating your claim, representing you in the claims process, interpreting your policy — require a public adjuster license in Minnesota. A public adjuster is a licensed professional who represents policyholders in insurance claims, separate from the insurer's adjuster and separate from your roofing contractor.

If your claim is complex, contested, or involves a significant amount of money, consulting a licensed public adjuster or an insurance attorney is a legitimate option. A roofing contractor cannot serve this function, and any contractor who offers to is operating outside their license.

Honest Exteriors does not act as a public adjuster. We inspect, document, provide written estimates, and are available to be present during adjuster inspections. We leave the claims process in your hands.

The 72-Hour Cancellation Right: MN Statute § 326B.811

Minnesota law provides a specific cancellation right for insurance-funded roofing contracts. Under Minnesota Statute § 326B.811, if you have entered into a written contract with a roofing contractor for work to be paid from insurance proceeds, and your insurer subsequently notifies you that all or part of the claim is not a covered loss, you have the right to cancel that contract prior to midnight on the fifth business day after receiving that written notice from your insurer.

A contractor is required to provide you with written notice of this cancellation right. If they don't, ask for it before signing.

Assignment of Benefits: What It Is and Why You Shouldn't Sign One

An Assignment of Benefits (AOB) is a document that transfers your insurance claim rights to a third party — typically the contractor. Once signed, the contractor can negotiate with your insurer and receive payment directly, without your ongoing involvement or approval.

A legitimate roofing contractor operating within Minnesota law does not need an AOB. They can perform every aspect of their legitimate role — inspection, documentation, estimation, supplementing, and completing the work — without you signing over your claim rights. If a contractor presents an AOB as a requirement of working together, that is a meaningful signal about how they intend to operate.

How to Verify a Minnesota Roofing Contractor's License

Every roofing contractor performing compensated work on residential properties in Minnesota is required to hold a license issued by the Minnesota Department of Labor and Industry. You can verify any contractor's license status at the DLI's eLicense portal at doli.state.mn.us.

When verifying, confirm: the license is active, the license class is appropriate (Residential Roofer, Residential Building Contractor, or Residential Remodeler), and the expiration date has not passed. If a contractor cannot provide their Minnesota license number immediately on request, that is your answer.

Honest Exteriors' Minnesota contractor license number is BC784168.

About Honest Exteriors

Honest Exteriors is a GAF Certified and Owens Corning Preferred roofing contractor based in Eden Prairie, MN. We serve the west Twin Cities metro — Eden Prairie, Minnetonka, Chanhassen, Chaska, Plymouth, Maple Grove, Bloomington, Edina, Shakopee, Savage, Prior Lake, and surrounding communities. We operate within Minnesota law, provide written estimates, and put your interests first in every interaction with your insurance company.

For related guides, see How Roof Insurance Claims Work in Minnesota and What to Do After a Hail Storm in the Twin Cities.