Sec. 13. (a) A remodeler may disclaim all implied warranties only if all of the following conditions are met:

(1) The warranties defined in this chapter are expressly provided for in the home improvement contract between a remodeler and an owner.

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Terms Used In Indiana Code 32-27-1-13

  • Contract: A legal written agreement that becomes binding when signed.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • home: means an attached or detached single family dwelling. See Indiana Code 32-27-1-3
  • home improvement: means any alteration, repair, or other modification of an existing home. See Indiana Code 32-27-1-4
  • home improvement contract: means a written agreement between a remodeler and an owner to make a home improvement. See Indiana Code 32-27-1-5
  • owner: means a person who:

    Indiana Code 32-27-1-8

  • remodeler: means a person who contracts with an owner to alter, repair, or modify the owner's home. See Indiana Code 32-27-1-10
(2) The performance of the warranty obligations is guaranteed by an insurance policy in an amount equal to the contract price made under the home improvement contract.

(3) The remodeler carries completed operations products liability insurance covering the remodeler’s liability for reasonably foreseeable consequential damages arising from a defect covered by the warranties provided by the remodeler.

     (b) The disclaimer must be printed in a minimum size of 10 point boldface type setting forth that the warranties defined by this chapter replace the implied warranties that have been disclaimed by the remodeler. The owner must affirmatively acknowledge by complete signature that the owner has read, understands, and voluntarily agrees to the disclaimer.

     (c) The owner must acknowledge the disclaimer of implied warranties by signing, at the time of execution of the home improvement contract, a separate one (1) page notice attached to the home improvement contract that includes the following language:

“NOTICE OF WAIVER OF IMPLIED WARRANTIES

I recognize that by accepting the express warranties and the insurance covering those warranties for the periods provided in this home improvement contract, I am giving up the right to any claims for implied warranties, which may be greater than the express warranties. Implied warranties are unwritten warranties relating to the reasonable expectations of a homeowner with regard to the remodeling and home improvement of the homeowner’s home, as those reasonable expectations are defined by the courts on a case by case basis.”.

     (d) If there is a default of the:

(1) insurance for the performance of the warranty obligations; or

(2) completed operations products liability insurance;

the disclaimer by the remodeler is void.

[Pre-2002 Recodification Citation: 24-5-11.5-13.]

As added by P.L.2-2002, SEC.12.