Virginia Reminder: HB 437 and the Boundaries Between Restoration and Public Adjusting

If your company provides emergency restoration services in Virginia, I'd suggest that you review your team’s claims-related communications and business practices. HB 437, effective July 1, 2026, strengthens Virginia’s restrictions on unauthorized public adjusting.

Restoration work and claim representation carry different responsibilities. Virginia prohibits providing, offering, or advertising public-adjusting services without the required license, subject to statutory exemptions. A homeowner’s power of attorney does not allow a contractor to bypass those requirements. The law also prohibits licensed public adjusters from knowingly assisting unauthorized public adjusting.

For restoration contractors, I'd suggest that you keep these boundaries in mind:

Explain your work and estimates. The Virginia Bureau of Insurance’s contractor guidance identifies preparing a repair estimate and scope, discussing them with the customer, attending the insurer’s inspection, and answering questions about estimates as activities generally outside public adjusting. That guidance predates HB 437 and should be read alongside the current law.

Do not represent the policyholder in settling the claim without the required license. Preparing or filing the customer’s insurance claim, negotiating the insurance settlement on the customer’s behalf, and advertising that your company will handle those functions can cross into regulated public adjusting.

Review public-adjuster relationships for conflicts. A public adjuster cannot participate directly or indirectly in restoring property involved in a claim that adjuster handles. Restrictions also apply to referrals involving ownership interests or compensation. Creating separate companies does not, by itself, resolve these restrictions.

Please review your website, sales materials, work authorizations, and employee scripts. Make sure staff understand the difference between explaining the damage and proposed repairs and representing the customer in an insurance settlement.

Members who also provide licensed public-adjusting services should separately review the requirements applicable to those services.

You can review the current prohibition on unauthorized public adjusting and the public-adjuster standards of conduct.

This update is for educational purposes and is not legal advice. Confirm current requirements with the Virginia Bureau of Insurance and consult qualified counsel about your company’s practices.