March 17, 2022
Agency
How To Avoid Roofing Contractor Fraud
Roof replacements and repairs are common home improvements. Thousands of reputable roofing contractors make these needed enhancements all year long. However, severe weather such as thunderstorms and hurricanes can hasten the need to have roofing work done. After these occurrences, unsavory individuals often decide to take advantage of vulnerable people who need emergency work done.
These crooks are looking to scam unsuspecting individuals, whether it’s an immediate need due to a weather emergency or a planned replacement. Often these scammers pose as legitimate contractors with lots of false guarantees on how they’ll do the repairs. The only goal of these crooks is trying to separate you from your money through advance payments on the roofing work, pressuring you to sign a contract and pay upfront, or by cashing in a homeowners insurance claim. Afterward, the repairs are below average—or not even completed—and they disappear, and you’re out of your money.
Be Aware of Scams
Roof repair scams are unfortunately common. There are four things to look for from a dishonest contractor, including:
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If a contractor knocks on your door and offers to go up on your roof to look for damage, be prepared to get other contractors to do the same. Don’t sign anything until you do your due diligence.
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Payment in advance—Fraudulent contractors will insist you pay upfront before they begin work. Then, the contractor may disappear, never completing or even starting the job.
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Overstated damage—Fraudulent contractors will exaggerate or even lie about the amount of damage, hoping to overbill you or your insurance company. Sometimes they even create more “mystery” damage to charge more.
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Super-low bids—Some scammers often too-good-to-be-true deals. Their proposals are much lower than other contractors, and sometimes, they even offer special deals, including rebates on your insurance deductible.
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Sloppy repairs—Fraudulent contractors may do the work, but it’s hurried and uses substandard material.
Protect Your Next Project
You can prevent falling victim to a fraudulent contractor by following this advice when seeking help for your project.
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Don’t sign the rights to your insurance policy over to any contractor. This is called ASSIGNMENT OF BENEFITS. You are the policyholder and only you should be the one filing a claim with your carrier.
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Get a few estimates. One contractor shouldn’t pressure you for a job. Get multiple estimates to ensure you’re comfortable with your selection.
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Only use licensed and insured contractors. Not all states license roofing contractors, so find out if your state does. Ask to see your contractor’s liability insurance and ensure the policy’s effective dates haven’t expired.
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Do your research. Check if your contractor is a member of any local, state, regional or national roofing industry associations. Look to see if any complaints were filed with the Better Business Bureau. Ask for a list of client references and completed projects.
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Get a signed contract before starting a project. Ensure the contract details the cost, time schedules, payment schedules, guarantees, and other expectations. Don’t leave any part of the contract blank.
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Coordinate with your insurer. Make sure your claims adjuster inspects the damage before repairs begin. Your claim could be denied if your insurer doesn’t examine the damage first.
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Pay with a check or credit card. Don’t use cash. Don’t pay your contractor in full or sign a completion certificate until the work is completed to your satisfaction and in compliance with local building codes
Licensed roofing contractors carry liability insurance and other insurance coverage to ensure a safe and protected roofing installation. Hiring a licensed contractor gives you good craftsmanship, higher quality materials and decent business practices. Ensure you have the needed coverage before beginning your next home improvement project. Contact us at the Ramey Insurance Agency.