If a roofing contractor claims to be “fully insured” you may want to take a closer look at their estimates. Roofing is expensive and quality materials do not come cheap.
Storm chasers are notorious for offering enticing prices to homeowners after major storm damage. These fraudulent contractors are after your insurance money and often commit various types of fraud to get it.
1. They Don’t Have a Website
We get calls daily from homeowners who almost fell victim to middlemen, scammers, or fly by night roofing contractors. Many of these contractors are not licensed or insured and will take advantage of any homeowner that does not know what to look for in a contractor, says one expert in advice on avoiding home buying mistakes. They may even commit insurance fraud to save money on the cost of materials and installation.
One of the most common tricks is for these contractors to claim they already have an established presence in your neighborhood and have been working on roofs in your area. This is usually a red flag and it is a good idea to do a quick Google search before hiring any contractor for a roof inspection. We have read countless customer complaints where the homeowner was given a website URL that redirected them to a free ‘Google Site’ page that gave the appearance they were legitimate, but as soon as they collected the deposit from the homeowner, the site was pulled down and these roofer’s disappeared with the money.
The world we live in today can be scary, trust is huge. This is why pretty much anyone in business should have a website to tell their customers who they are, where they are located and what services they provide. If a company does not have a website it is usually the first sign that they are not an established local roofing contractor.
2. They Don’t Give You a Written Estimate
Some roofing contractors will not provide homeowners with a written estimate of what the cost will be for a roof installation. This is a red flag that something is not right. All estimates should be provided in writing and this can help resolve any disputes down the road.
A good roofing contractor will not hesitate to give you a detailed estimate. A well-written estimate will allow you to review all of the costs without any pressure from a salesperson breathing down your neck.
It is also important to remember that an estimate should be referred to as an estimate and not a quote. A quote is a legally binding contract and should only be given to you once the scope of work has been determined.
If a contractor is telling you that they are fully insured and then not providing proof of this, this may be a scam. It is illegal for roofing companies to present fake insurance certificates, so always ask to see the actual certificate before hiring them.
Another sign of a scam is if a roofer does not require you to pay your entire insurance deductible before beginning the work on your home. This is considered insurance fraud and it should never be tolerated.
3. They Don’t Have Insurance
If a roofing contractor claims to be fully insured, you should never trust them. They can be a scammer that will take your money before starting the job. It’s common for these scammers to have a clause in their contract that says they will be paid the full amount of any claim before you are. This is known as an AOB clause and it makes it nearly impossible to get any extra claim monies back from the contractor once they’ve received them.
Another trick is for the “roofer” to present a fake insurance certificate. It will say that the company has worker’s compensation but doesn’t list the individual roofers working on your house. This allows them to not only save on worker’s comp insurance, but it also lets them avoid any accountability if an accident happens and they decide to walk off the job.
There is no shortage of middlemen and salespeople with no hands-on roofing installation experience in Florida who will try to convince you that making an insurance claim is difficult and they need to take over your claim from the beginning to make sure they get all the money. These types of scammers are a big reason why homeowners are getting taken advantage of after every storm.
4. They Don’t Give You a Written Contract
Often these types of contractors will present homeowners with a “Fully Insured” certificate, even though it’s illegal to do so in many states. If a problem arises during the project, this can make it very difficult to resolve the issue since there is no written contract. In the event of a dispute, it can also be very hard to prove that the work was performed.
If a contractor is unwilling to give you a written estimate, it’s a good sign that they are not reputable. They may be trying to convince you to let them take over your insurance claim and keep all of the money for themselves. This is not only illegal, but it can also be a very costly mistake for you as a homeowner.
Another common trick of these contractors is to tell you they will sue you if you don’t let them on your roof. This is a very intimidating tactic, and homeowners often succumb to this pressure. Remember that your home is one of your biggest investments, and you shouldn’t allow a fly-by-night roofer to take advantage of you. In addition, these contractors are not going to follow OSHA guidelines and ensure the safety of everyone on your property, which could be a serious legal issue down the road.
5. They Don’t Give You a Written Inspection
The roofing industry is rife with middlemen and salespeople who know absolutely nothing about installing a quality roof. These people use their hustle skills to appear to be a good choice, but it’s always best to get multiple estimates, check reviews online, verify insurance and licenses, and understand warranties before hiring any contractor.
A common trick is for contractors to give a free inspection but then create a sense of urgency, or say that there are only a few days left before the insurance claim expires and you need to hire them right away to avoid losing your claim money. This is one of the biggest shady practices that homeowners should never fall for.
Another trick is for contractors to present fake insurance certificates. It can be hard to spot a false certificate, but it is very common for contractors to try and cut corners by only paying for a policy that covers them and not the homeowner as an additional insured.
Other tricks include waiving or covering your deductible. This is illegal and a sign of insurance fraud. We hear from homeowners daily who were swayed by this strategy, but it’s easy to avoid by demanding a full written estimate before hiring anyone.
6. They Don’t Give You a Written Inspection Contract
If a roofing contractor is reluctant to give you a written inspection contract, it is usually a sign of shadiness. They may be trying to hide a lack of licensing or insurance. They may also be hiding a history of fraudulent activity or poor workmanship.
There are a lot of scammers in the roofing industry, and it’s important to be aware of their tricks. For example, some contractors will show you insurance but it will be fake or won’t cover much. The best way to avoid this is by asking for proof of insurance and researching them online to verify their information.
Some of these contractors will even offer to handle your insurance claim for you, but they’re just aiming to get in front of you and make you their first client. They’ll also create a sense of urgency and pretend that you have limited time to file an insurance claim or use their services.
Another trick is stating that they’ll waive or cover your insurance deductible. This is illegal and is called insurance fraud. The contractor will not be able to legally cover your deductible, and you’ll have to pay it out of pocket when something goes wrong with the job.
7. They Don’t Give You a Written Inspection Contract
Even though verbal and handshake agreements can technically be legally binding contracts, it’s best to avoid relying on them when you’re hiring someone for something as important as your roof. Verbal agreements can be hard to prove if something goes wrong and may not protect you as much as a written contract.
After every hail and wind storm, shady roofing contractors will start knocking on doors offering to inspect their roofs. Unfortunately, many of these so-called contractors are simply aggressive sales people and middlemen who have no hands on roofing installation experience. Their goal is to convince homeowners that insurance claims are complicated and that they need to hire them to handle the entire process from beginning to end.
Some of these shady roofing contractors will also try to trick customers by showing them fake insurance certificates. Despite appearances, these fake insurance certificates are not valid and do not cover you as the homeowner.
A legitimate roofing contractor will never attempt to get your money before delivering the materials and completing the work. Using a software solution like RoofSnap that enables you to send a digital signature and receive it at any time before an inspection will ensure that your client has their agreement in writing and that all terms are clearly explained.