Illinois Insurance Funded Home Repair Contract

Illinois Insurance Funded Home Repair Contract

Use this agreement for repair or remodeling of an existing Illinois home with no more than six units, priced over $1,000, when property and casualty insurance proceeds are expected to pay for any part of the work. The parties negotiate and sign it at Contractor's permanent business office. For a covered sale at Owner's home, use the Illinois insured in-home improvement contract, which includes the additional notices. Complete every field before signing; print the cancellation statement and both attached notices in bold type of at least 10 points. Attach two completed copies of the notice so Owner can detach them easily.

Before signing, Contractor gives Owner the separate Home Repair: Know Your Consumer Rights pamphlet. Both parties sign and date its duplicate Consumer Rights Acknowledgment Form. Contractor keeps the original; Owner keeps the duplicate in the pamphlet.

Agreement date: [DATE] Signing location: [CONTRACTOR PERMANENT OFFICE ADDRESS]

Owner / insured: [FULL NAME] Mailing address: [ADDRESS] Phone and email: [DETAILS]

Contractor legal business name: [NAME] Business street address for cancellation: [STREET, CITY, IL ZIP]

Contractor phone and email: [DETAILS] If business mail goes to a box, mail service, or agent, contractor's residence address: [ADDRESS / NOT APPLICABLE]

Project address: [ADDRESS] Residence type and number of units: [DETAILS]

If roofing is included, Illinois roofing license name and number exactly as shown on the license: [NAME; NUMBER / NO ROOFING]

1. Work and schedule

Contractor will supply the labor, parts, and materials described with quantities and specifications in Exhibit A. Excluded work is [DETAILS / NONE]. Contractor will obtain [PERMITS] and arrange [INSPECTIONS]. Owner will supply access during [HOURS] and make selections by [DATES].

Estimated start: [DATE] Estimated completion: [DATE] Delay notice contact: [DETAILS]

Work outside Exhibit A requires a change order stating the work, price, and schedule change, signed by both parties before the extra work begins. Contractor will protect the work area and remove project debris except [DETAILS / NONE].

2. Price, insurance, and payments

Total contract price: $[AMOUNT], including the detailed work and materials in Exhibit A. Estimate charge: $[AMOUNT / ZERO], [INCLUDED / SEPARATE]. Owner's deductible and other direct payment: $[AMOUNT OR UNKNOWN]; Owner remains responsible for the agreed price regardless of insurer payment except as this contract or law provides.

Insurer, claim number, and adjuster contact if known: [DETAILS] Claimed loss and insurer decision status: [DETAILS]

Total scheduled payments: $[AMOUNT], equal to the total contract price. Contractor will invoice by milestone, credit insurer payments received for this work, and return any overpayment. No discount, rebate, allowance, or other benefit is offered to pay or offset an insurance deductible. Contractor will not file or adjust Owner's insurance claim or represent Owner to the insurer. Contractor may give Owner a repair estimate, discuss work options with Owner or the insurer, and confer with the insurer's representative as § 18(i) permits. Contractor may inspect a roof or exterior damage only with Owner's express permission: [DATE AND SCOPE OF PERMISSION / NO INSPECTION].

Contractor maintains the liability and property damage insurance required by 815 ILCS 513/25: $100,000 per person and $300,000 per bodily-injury occurrence, $50,000 per property-damage occurrence, and $10,000 per occurrence for work not conforming to applicable state, county, or municipal codes. The statutory insurance exception applies only if Contractor has a net worth of at least $1,000,000 shown on its most recent financial statement prepared within 13 months. Policy, limits, or qualifying financial statement: [DETAILS].

3. Insurance denial cancellation

Under 815 ILCS 513/18(e), Owner may cancel before midnight on the earlier of the fifth business day after receiving the insurer's written notice that all or part of the claim or contract is not covered, and the thirtieth business day after the insurer receives Owner's properly executed proof of loss. Owner may mail or deliver written cancellation to the business street address above; mailed notice is effective when properly addressed, prepaid, and deposited in U.S. mail. The statute calls for a copy of the insurer's written noncoverage notice with the cancellation. Owner should retain proof of mailing or delivery and the insurer's notice.

Insurer received properly executed proof of loss on: [DATE / NOT YET KNOWN]

Owner received written denial or partial denial on: [DATE / NOT YET RECEIVED]

Deadline calculated under the earlier-of rule: [DATE / UPDATE WHEN BOTH DATES ARE KNOWN]

Contractor will return payments, deposits, and any debt instrument within 10 days after a valid § 18 cancellation. The attached statutory notice uses the separate “10 business days” wording prescribed by § 18(g); Contractor will follow the shorter 10-day tender duty in § 18(h). Contractor may retain only the reasonable value of catastrophe-related goods or services that Owner separately acknowledged and agreed in writing were necessary to prevent property damage. No other cancellation fee applies under § 18(h). Separate written catastrophe authorization, if any: [IDENTIFY AND ATTACH / NONE].

Required contract statement — print in bold type of at least 10 points:

You may cancel this contract at any time before midnight on the earlier of the fifth business day after you have received written notification from your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy or the thirtieth business day after your insurer has received properly executed proof(s) of loss from you. See attached notice of cancellation form for an explanation of this right.

4. Completion, warranty, and other termination

Contractor will perform the described work in a workmanlike manner. The parties will inspect it at completion and list unfinished items with a correction date. Additional workmanship warranty, if any: [EXACT TERMS / NONE]. Manufacturer warranties delivered: [DETAILS / NONE].

For a material breach unrelated to the statutory cancellation right, the nonbreaching party may send a description to the other party's address above and allow [NUMBER] days to cure. Either party may end the agreement by signed mutual writing. Upon lawful termination the parties will account for conforming work, approved materials, payments, and offsets. Nothing here limits the § 18 cancellation right.

Illinois law governs. A court with jurisdiction in [COUNTY] County may hear a dispute, subject to applicable consumer protections. This agreement, Exhibit A, both detachable notices, and later signed change orders are the parties' complete agreement.

5. Signatures and delivery

Owner signature: ____________________ Printed name: [NAME] Date: [DATE]

Contractor signature: ____________________ Printed name and title: [DETAILS] Date: [DATE]

Completed contract and two detachable notices delivered to Owner on: [DATE AND TIME]. Pamphlet and its two signed acknowledgment copies delivered on: [DATE AND TIME].

Exhibit A — work, parts, and materials

Plans, specifications, and exclusions: [DETAILS / NONE] Permits and inspections: [DETAILS]

Separate pamphlet acknowledgment — duplicate copies

Incorporate these copies into the separate Attorney General pamphlet before signing; each party signs and dates both. Contractor retains the original and Owner retains the duplicate within the pamphlet.

Original — Consumer Rights Acknowledgment Form: I, the homeowner, have received from the contractor a copy of the pamphlet entitled 'Home Repair: Know Your Consumer Rights.'

Owner signature/date: ____________________ / [DATE] Contractor signature/date: ____________________ / [DATE]

Contractor business name and address: [DETAILS]

Duplicate — Consumer Rights Acknowledgment Form: I, the homeowner, have received from the contractor a copy of the pamphlet entitled 'Home Repair: Know Your Consumer Rights.'

Owner signature/date: ____________________ / [DATE] Contractor signature/date: ____________________ / [DATE]

Contractor business name and address: [DETAILS]

Detachable notice of cancellation — copy 1

NOTICE OF CANCELLATION

If you are notified by your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy, you may cancel the contract by mailing or delivering a signed and dated copy of this cancellation notice or any other written notice to [CONTRACTOR LEGAL BUSINESS NAME] at [CONTRACTOR BUSINESS STREET ADDRESS] at any time prior to midnight on the earlier of the fifth business day after you have received such notice from your insurer or the thirtieth business day after your insurer has received properly executed proof(s) of loss from you. If you cancel, any payments made by you under the contract, other than payments for goods or services related to a catastrophe which you agreed in writing to be necessary to prevent damage to your property, will be returned to you within 10 business days following receipt by the contractor of your cancellation notice.

I HEREBY CANCEL THIS TRANSACTION

Date: [DATE] Insured signature: ____________________

Insurer noncoverage notice attached: [YES / NOT YET ISSUED]

Detachable notice of cancellation — copy 2

NOTICE OF CANCELLATION

If you are notified by your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy, you may cancel the contract by mailing or delivering a signed and dated copy of this cancellation notice or any other written notice to [CONTRACTOR LEGAL BUSINESS NAME] at [CONTRACTOR BUSINESS STREET ADDRESS] at any time prior to midnight on the earlier of the fifth business day after you have received such notice from your insurer or the thirtieth business day after your insurer has received properly executed proof(s) of loss from you. If you cancel, any payments made by you under the contract, other than payments for goods or services related to a catastrophe which you agreed in writing to be necessary to prevent damage to your property, will be returned to you within 10 business days following receipt by the contractor of your cancellation notice.

I HEREBY CANCEL THIS TRANSACTION

Date: [DATE] Insured signature: ____________________

Insurer noncoverage notice attached: [YES / NOT YET ISSUED]

Sources

• Current Illinois Home Repair and Remodeling Act
• Public Act 97-235 notice text
• Illinois Attorney General home repair pamphlet