Can contractors raise prices after a storm in Maryland?
Short answer. Not to exploitative levels. Maryland Commercial Law §13-301 bars unfair or deceptive trade practices, and price gouging rules apply during declared emergencies. You can charge a fair premium for emergency scheduling.
- Commercial Law §13-301
Work it through
You're the contractor. Pick what you'd do, then see how each choice plays out.
A major storm hit the area. Dozens of homes need roof repairs. Your phone is ringing nonstop. A neighbor of yours suggests, "Triple your prices — everyone's desperate and insurance is paying anyway."
- Correct
Maryland Commercial Law §13-301 prohibits unfair, abusive, or deceptive trade practices, and the state has specific price gouging provisions during declared states of emergency. Tripling your prices after a storm is the kind of practice that attracts AG investigation, media attention, and MHIC complaints. Fair pricing during emergencies builds long-term reputation. Gouging builds a long-term regulatory file. You can charge premium rates for emergency scheduling without being exploitative.
- Potentially illegal
If a state of emergency has been declared, Maryland price gouging laws apply. Even without a declaration, the MHIC and AG's office monitor post-storm contractor behavior closely. Charging $15,000 for a $5,000 roof repair because 'everyone's desperate' is the textbook example of predatory practice. Storm chasers who gouge prices are the reason MHIC regulations exist in the first place.
All 9 cancellation rights & consumer protection questions
- What must a door-to-door home improvement contract include?
- Does every homeowner have a 3-day right to cancel?
- Does a home show sale carry a 3-day right to cancel?
- What should you do about a pressured sale to an elderly homeowner?
- What happens when a contractor is accused of exploiting an elderly client?
- Can contractors raise prices after a storm in Maryland?
- Is writing a second contract for the insurance company fraud?
- Can you sign an invoice for more than the work you did?
- How does COMAR regulate model home and referral offers?