DES MOINES, Iowa — A federal judge has upheld Iowa’s restrictions preventing roofers and other contractors from negotiating directly with insurance companies on behalf of homeowners, siding with state regulators in a closely watched case.
Under Iowa law, contractors may perform repair work but cannot act as public adjusters- licensed professionals who assist homeowners in filing claims and negotiating settlements with insurers. The distinction, officials argue, protects consumers and maintains accountability in the claims process.
In 2024, the Iowa Insurance Division intensified enforcement against contractors accused of overstepping their role. The division issued more than 70 warning letters and at least eight cease-and-desist orders or enforcement referrals, targeting roofers and other trades allegedly acting as unlicensed adjusters.
One of the most vocal challengers was Kansas-based Shamrock Roofing, which sued the division last September. The company argued the crackdown infringed on contractors’ free speech rights, pointing out that it operates in eight states, many with looser restrictions. Shamrock also said routine statements in its marketing materials — permissible in other states — were being treated as violations in Iowa.
Owner Garen Armstrong claimed regulators were siding with insurers at the expense of consumers. “The IID are straight-up lapdogs for the insurance carriers,” Armstrong told the Des Moines Register last year. “They’re not protecting consumers. Otherwise, they’d be going after the insurance companies.”
U.S. District Judge Rebecca Goodgame Ebinger dismissed Shamrock’s lawsuit on Sept. 18, finding Iowa’s law to be a valid regulation of professional conduct, not an unconstitutional restriction on free speech.
“The statute is a valid regulation of professional conduct and does not infringe upon Shamrock Hills’ First Amendment rights,” Ebinger wrote. She noted that the law primarily governs business activity, with only incidental effects on speech, and that similar laws exist in most states.
Ebinger also rejected Shamrock’s argument that the statute was unconstitutionally vague, writing, “This law has a clear legitimate regulatory goal, and it is one reflected by the vast majority of states which have instituted similar laws.”
Shamrock’s attorney, Heather Voegele, said the company is weighing its options. “Shamrock is disappointed by the Court’s ruling and is evaluating all its options to continue the fight to protect homeowners and contractors operating in Iowa,” Voegele said in a statement. “It is Shamrock’s belief that Iowa’s public adjuster laws, as enforced by the Iowa Insurance Division, are an impermissible regulation of speech.”
The legal battle comes as Iowa’s home insurance industry faces mounting challenges. Powerful derechos in 2020 and 2021 caused billions in damage, followed by additional losses from windstorms, tornadoes, and flooding in 2024. Inflation has further increased repair costs.
From 2022 through early 2024, at least six insurers exited Iowa or scaled back operations. Nearly one in five of the state’s county and state mutual insurers also merged in 2024, underscoring the financial strain on the market.
For now, the ruling solidifies Iowa’s stance: contractors may repair storm-damaged homes, but they cannot step into the role of adjusters at the negotiating table with insurers.
