Protect Yourself and Your Insurance
After a severe storm, homeowners often face significant challenges, from assessing the damage to filing insurance claims. Unfortunately, amid the chaos, fraudulent roofing contractors see an opportunity to exploit vulnerable property owners and their insurance policies. By understanding common roofing scams and taking preventative measures, you can protect yourself from becoming a victim.
The Rise of Roofing Scams After a Storm
In recent years, unethical roofing contractors have taken advantage of homeowners’ insurance for roof replacements, filing claims for unnecessary repairs or even fabricated damage. After a storm, these contractors may canvass neighborhoods, offering free inspections and promising a "free" new roof, regardless of whether there’s legitimate storm damage. This illegal practice has led to increased insurance premiums for homeowners and financial strain on insurance companies.
Common Roofing Scams to Watch For
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Unsolicited Inspections: Fraudulent contractors often show up unannounced after a storm, offering free roof inspections. These inspections can be a tactic to create or exaggerate damage, leading to unnecessary repairs. Be wary of contractors who pressure you into immediate action.
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Inflated Insurance Claims: Some roofing companies deliberately misrepresent normal wear-and-tear as storm damage to inflate their claims. In extreme cases, contractors have been caught intentionally damaging roofs to secure insurance payouts. For instance, a few missing shingles might be exaggerated into a full roof replacement, costing your insurer significantly more.
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Waived Deductibles: Contractors who offer to "cover" or waive your insurance deductible are not doing you a favor; this is illegal and a red flag for insurance fraud. If they are willing to break the law in this way, there’s a good chance they are cutting other corners, too.
How to Protect Yourself from Roofing Scams
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Verify the Contractor’s Credentials: Always ask for a contractor’s license, insurance information, and local references. A reputable roofing company will have no problem providing this. Check online reviews and their status with the Better Business Bureau to confirm their legitimacy.
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Get Multiple Estimates: Don’t settle for the first quote you receive. Fraudulent contractors may try to overcharge for repairs by inflating the costs. Getting at least three estimates helps ensure that you're being quoted a fair price.
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Consult Your Insurance Agency: Always involve your agent before agreeing to any repairs. Insurance adjusters can assess the damage and determine if the repairs are necessary, helping you avoid fraudulent claims.
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Avoid Large Upfront Payments: Be cautious of contractors who ask for a significant portion of the payment upfront. Scammers may take the money and disappear, or perform substandard work. It’s best to pay in installments based on the progress of the work.
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Insist on an Itemized Estimate: Legitimate contractors should provide a detailed estimate that breaks down the costs of materials and labor. Avoid contractors who give vague, lump-sum estimates, as this can hide inflated or unnecessary costs.
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Document Everything: Keep detailed records of all interactions, contracts, and payments with your contractor. This will provide you with evidence if you need to dispute a claim or report suspicious activity.
- Consider a Roof Inspection Baseline: Scheduling a roof inspection in the fall, before temperatures drop, helps identify any damages that can be repaired ahead of winter. Even minor issues, if left unaddressed, can worsen over time. A pre-winter inspection also ensures your roofing professionals can confirm that your home is properly insulated for the colder months.
Spotting a Fraudulent Roofing Contractor
Here are some telltale signs of a fraudulent contractor:
- They arrive unannounced or pressure you into making quick decisions.
- Their estimates are significantly higher than others, or they refuse to provide an itemized list of costs.
- They ask you to endorse insurance checks or submit claims on your behalf.
- They cannot provide references, have no fixed address, or refuse to show proof of insurance.
The Role of Insurance Companies
Insurance companies are cracking down on fraudulent claims, which have contributed to rising premiums and even the withdrawal of insurers from high-risk states. Homeowners are paying the price for these scams, with many facing increased rates or losing coverage altogether.
To combat this, we recommend that homeowners:
- Report suspicious contractors to their state’s insurance fraud division.
- Work closely with their insurance adjuster to ensure that damage is properly assessed.
- Avoid signing any contracts or claim paperwork without their insurer’s input.
The Path Forward: Protecting Your Home and Your Wallet
After a storm, homeowners are understandably eager to restore normalcy. However, taking the time to research roofing contractors and consult with your insurance company can save you from being victimized by a scam. By staying informed and vigilant, you can ensure that your roof repairs are necessary, legitimate, and fairly priced.
If you suspect you’ve been targeted by a fraudulent contractor or need assistance navigating storm-related repairs, reach out to Camargo Insurance or local authorities for guidance.