Texas HB 4169: A Threat to Fire‑Restoration Contractors – and Why Your Voice Is Needed Today
The Texas Legislature is considering House Bill 4169, a measure that would wrap fire‑remediation work in layers of red tape, create new liabilities, and require impossible contract terms for contractors.
Unless we speak up now, HB 4169 could become law as early as September 1, 2025 —changing how restorers contract for fire remediation services in the State of Texas.
What the Bill Actually Does
HB 4169 would create a brand‑new Chapter 60 of the Business & Commerce Code that applies only to fire‑remediation contractors. Key mandates include:
- Pre‑Estimate vs. Final Contracts. Any agreement signed before the insurer performs an adequate damage assessment is classified as a “pre‑estimate fire‑remediation contract” and is non‑binding on the property owner unless certain restrictive disclosures are written into the contract.
- Mandatory Written Disclosures. Every fire remediation contract must list the applicable estimated dollar amount the insurer will pay and the owner’s estimated out‑of‑pocket share after submitting the insurance claim.
The contract must also state that signing the contract is not required, and if the person signs the contract, they are only responsible for paying the estimated out-of-pocket share after having submitted the claim.
- Electronic Filing with the Secretary of State. Contractors must upload every pre‑estimate and final contract to a new online system for state oversight.
- Deceptive‑Trade‑Practice Exposure. Violations will be deemed as deceptive trade practice, opening the door to lawsuits.
- No Waivers Allowed. Parties cannot contract around these requirements; any attempt is void.
The bill was filed by Rep. Campos and is now with the House Trade, Workforce & Economic Development Committee, awaiting a public hearing.
Five Ways HB 4169 Hurts Consumers & Contractors
- Impossible Contract Promises
According to Title 13, Subtitle C, Chapter 4101, Subchapter A. of the Texas Statutes, a person may not act as or represent that the person is an adjuster in the state unless the person holds a license. Contractors are not adjusters and cannot determine insurance coverage, including what the insurance company will pay and what out-of-pocket costs the policyholder will pay. This makes the bill’s requirements for including this information in fire remediation contracts impossible and improper. The parties to a fire remediation contract include the customer and the contractor only.
- Slower Emergency Response
Because pre‑estimate contracts are non‑binding without including restrictive written disclosures, this could delay important time-sensitive services such as property board-up and water-extraction that often needs to be completed quickly.
- New Administrative Overhead
Electronic filing and compliance means extra staff time and data‑privacy risks.
- Litigation Landmines
By requiring improper contract terms and considering violations of the bill to be violations of the Deceptive Trade Practices Act, HB 4169 could be weaponized against contractors.
What the Restoration Industry Association (RIA) Is Doing
The RIA’s Advocacy & Government Affairs (AGA) is lobbying to:
- Push for critical amendments to remove language that requires fire remediation contracts to include insurance payment and policyholder out-of-pocket estimates, which put contractors at risk of adjusting without a license.
- Add an emergency‑response carve‑out so crews can start work immediately.
- Remove harmful language that could make minor administrative errors or not having certain insurance claims information in contracts a deceptive‑trade act.
How You Can Help Protect Your Company and the Industry
- Get Involved
Lawmakers need to hear directly from Texas restorers on how this bill, as written, will be detrimental to their businesses and their customers. If you’re a Texas restorer and are interested in getting involved, sign up here so that the RIA team can reach out with details.
- Invest in the AGA
AGA investments are used to support RIA’s advocacy work, including our legislative lobbying efforts. Click here to provide your support.
- Join the RIA
Strength in numbers matters. Every additional member shows legislators that restoration contractors are a united, professional force. If you aren’t a member, join today and support this important work.
The Bottom Line
HB 4169 may be well‑intentioned, but as written, it will impose impossible contract requirements, slow emergency response, expose contractors to liability, and ultimately hurt Texas property owners. Stand with RIA’s Advocacy & Government Affairs (AGA) as we work to amend HB 4169 to protect consumers and the professionals who serve them.