Insurance Roofing Scams: What You Need to Know

Insurance roofing scams are a growing concern for homeowners. Scammers target vulnerable individuals, often those with damaged or aging roofs, by offering low-ball estimates and pressuring them into signing contracts.

The Federal Trade Commission (FTC) reports that roofing scams account for a significant portion of all home repair scams. These scammers may use fake company names, logos, and even uniforms to appear legitimate.

Be wary of door-to-door solicitors who show up unannounced, as they often lack the necessary credentials to perform roofing work.

In 2022 alone, the Federal Trade Commission reported a total of 70,612 home-related fraud cases, making it a significant concern for property owners. Roofing scams are preventable, however.

The roof is often the most vulnerable area of a building for scammers to target, due to its expense to repair and difficulty to access without proper tools. This makes it easy for scammers to lie about or cause damage without the owner finding out.

To protect yourself from roofing scams, look out for warning signs such as a contractor who offers to pay your insurance deductible, as this may be a red flag for insurance fraud. A reputable contractor will never do this.

A good roofer will have references, paperwork, legit contact info, and will be happy to provide everything in writing upfront. They will also be transparent about costs or materials and respect your right to get multiple quotes.

Here are some key warning signs you are the target of a roofing scam:

By being aware of these warning signs and doing your own research, you can protect yourself from roofing scams and ensure a smooth and successful roofing project.

Don't rush into anything, as scammers will try to take advantage of your anxiety in the aftermath of a storm.

A large down payment or full upfront payment before completing work on your roof is a red flag, as it's a tactic to take your money and leave without ever touching your roof.

Bids that are too good to be true are often a sign of a scam, as the price will almost certainly creep up due to "unforeseen problems" and inflated material costs.

If a contractor asks for a large down payment or full payment upfront, it's likely a scam.

Storm chasers, door-to-door scams, and unlicensed roofing contractors are common roofing scams in Colorado.

You should always get multiple bids from different roofers before committing to the first offer, as roof work is not just about repairing leaks and holes, it's also an investment in your home.

A contractor who asks for a large down payment or full payment upfront is likely trying to scam you.

Asking for referrals from people you know is one of the best ways to find a reliable roofer, as a roofing scam artist will undoubtedly have no references or evaluations.

Roofing scams often target the elderly, so it's essential to remind friends and loved ones of the risks.

A good roofing company lets its reputation speak for itself without chasing storms or pressuring you into signing contracts.

Never pay a contractor before work is completed, as this can be a red flag. It's essential to double-check with your insurance agent before making any payments.

Demand that a contractor show their licensing and proof of insurance. Only work with a licensed or insured contractor to ensure their legitimacy.

Unlicensed roofing contractors can be a major problem. In Colorado, there is no statewide license requirement, but you should still demand proof of any "approval" from your local city or county building department.

Here are some common tactics used by unlicensed contractors:

A large down payment or full payment upfront is a major red flag when dealing with contractors. This tactic is often used by unlicensed or unreliable contractors to take your money and leave without completing the work.

If a contractor asks for a large down payment or full payment upfront, it's a sign that they may not be trustworthy. According to Tip #6, never pay a contractor before work is completed. This can be considered a red flag, and you should double-check with your insurance agent before making any payments.

In fact, unlicensed contractors often demand a large sum of money upfront, as mentioned in the list of how to recognize an unlicensed roofing contractor. This is a tactic to take your money and leave without ever touching your roof.

Here are some warning signs to watch out for:

Remember, a reputable contractor will never ask for a large payment upfront. Always be cautious and do your research before making any payments or signing a contract.

Substandard materials used by unreliable contractors can lead to costly repairs down the line. They may use the cheapest materials to make repairs, which are often only cosmetic and don't address underlying problems.

Fraudsters can charge full price for these subpar repairs, leaving homeowners with a financial burden. In fact, they may inflate their profit margins by charging a lot to perform repairs using low-quality materials.

These materials are often so poor that the work must be done again, costing the homeowner even more money. Shady contractors will stop at nothing to make a quick profit, even if it means sacrificing the quality of their work.

Homeowners should be wary of contractors who use these tactics, as they can lead to a range of problems, from leaks to structural damage. Researching a company upfront is crucial to avoiding these scams and finding a reliable contractor.

Choosing a legitimate contractor is crucial to avoid falling victim to insurance roofing scams. A reputable contractor will be properly licensed.

Don't be fooled by high-pressure sales tactics or contractors who claim to have leftover materials from another job. These are red flags that can indicate a scam.

Verify a contractor's license number by contacting your city or county's building department. This will ensure the license is current and issued by the correct authorities.

Get at least three written bids from different contractors to compare prices and services. Don't always choose the lowest bidder, as this can often be a sign of a scam.

A legitimate contractor will use a written contract that lists materials, costs, and completion dates. Pay little or nothing in advance, and only pay the balance when the work is complete and approved by a building inspector.

Reputable contractors will be transparent about costs and materials, and will respect your right to get multiple quotes. They will also be willing to provide references and proof of insurance and bonding.

Here are some key characteristics of a legitimate contractor:

By following these tips, you can protect yourself from insurance roofing scams and ensure you hire a legitimate contractor for your roofing needs.

Shady contractors often use high-pressure tactics to get you to sign a contract quickly, without doing your homework. They might offer you a special deal if you pay upfront or sign a contract within the next day or hour.

Some scammers offer low starting bids to get you on the hook, then start finding problems that greatly increase the price. This might include a need for more materials, more time to repair, or more workers.

Be wary of contractors who seem overly interested in your insurance coverage, asking lots of questions about your previous claims or assuring you that a claim for the project at hand will be honored by the insurance company.

Storm chasers follow bad weather events in search of roofs damaged by rain, hail, or other elements. They might show up at your door unannounced, claiming that they've just finished repairing another roof nearby.

Some shady roofers will claim a roof has damage when there is none or not enough damage to justify a total roof replacement. Others might even create damage themselves.

Here are some common signs of a roofing scam:

These are just a few examples of common scam tactics used by shady contractors. Always do your research, get multiple quotes, and be cautious of any contractor who seems too good to be true.

Unlicensed contractors can be a major headache, and it's essential to know how to spot them. They often claim to have "just completed a job down the street" to gain your trust.

In Colorado, there's no statewide license requirement for roofers, which can make it tricky to determine if a contractor is legitimate. If a contractor claims to have "approval" from your local city or county building department, demand proof before accepting any services.

Some red flags to watch out for include unlicensed contractors who:

Here are some ways to verify a contractor's legitimacy: