Fraud Alert: Never Let a Roofer Pay the Insurance Deductible
Storms happen and roofs get damaged. This is especially true in the Midwest with our weather systems. Besides hail storms, other weather events like tornadoes and freezing can result in a damaged roof.
Here’s the good news: If you qualify, your insurance company will help you get on your feet. That means they’ll pay for the large part of a roof repair or replacement. All you will pay is the deductible.
And, make sure that you pay the deductible. There are types of roofers out there (we’ll get into that later) that will offer to pay your deductible. That means your new roof or roof repair would be completely free! But there’s one big drawback to doing this: it’s fraud and it’s illegal.
In this article, we’re going to explain:
- Why having a roofer pay an insurance deductible is fraudulent
- The types of roofing contractors to be wary of
- How scammers defraud homeowners and insurance companies
- Why there’s an increased risk of poor roofing materials when the roofer pays
Just jump right in and learn about roofing insurance fraud.
Your Roof, Insurance, and Fraud
It’s bad enough that you need to repair or replace your roof. After all, the clock is ticking because roofing issues only become bigger issues over time.
Case in point: A tear in a roof will result in leaks into the home. This has a strong potential to facilitate mold growth and weaken the structural integrity of the home.
Replacing your roof or having a large repair done can be a headache. What makes matters worse is trying to cut corners with your insurance company. Sometimes, however, homeowners don’t realize it’s wrong to do so when it comes to deductibles.
Some roofing contractors have been known to offer to pay the insurance deductible. They do this in an attempt to earn your business. However, it’s illegal for them to do so. And, even worse, it’s illegal for you to be part of this scheme.
The penalty for insurance fraud can cost upwards of $10,000. So, not only would you have to pay for a new roof out of pocket, you would have to pay a large fraud penalty as well. And, to make matters worse, insurance fraud includes mandatory jail time as well. We’re talking anywhere between 6 months to two years, generally.
So, remember: Never let a roofing company pay the insurance deductible. Additionally, if a roofing company offers to pay the deductible, that’s a massive red flag. If they’re willing to break the law, what else are they doing wrong? Is it possible the materials they’re using aren’t the quality they are promising? Would you even know the difference? The key is to look out for red flags. And insurance scams are easy to spot.
Next, let’s examine the types of roofing contractors to watch out for.
Roofing Contractors to Beware
Established roofing companies are less likely to be involved in these types of roofing schemes. But, take a closer look into:
- New roofing companies
- Door-to-door roofing contractors from out of state
- Signs at intersections promoting roofing services
For “new” roofing companies, it has happened that an experienced roofer has rebranded as a new company after a major issue such as bankruptcy. If a company is new, and the roofer says they have significant experience, it’s best to ask more questions about why the company is new.
Door-to-door roofing contractors are common in Illinois and basically in every part of the country. They aren’t all bad; however, the guys who come from other states many of them are the ones promising to pay the insurance deductible.
According to WTTW News, “Scammers often move quickly into communities to take advantage of people whose homes and businesses have been damaged, according to Raoul, who said these “storm chasers” pressure people into making quick and often expensive decisions about hail damage, cleanup and construction work.”
We see this quite often in Naperville as well. Right after a big storm hit, door-to-door “roofing experts” will offer their services. And some of them will even offer to pay the insurance deductible to obtain your business.
Illinois Independent Insurance Agents describe exactly how a roofing scammer attempts to take advantage. They write, “One popular method used by roofing insurance scammers is to ask you to file a claim through your homeowner’s insurance to pay for the repairs, and then later get you to sign over the check to them. Scammers want you to think you won't have to pay anything yourself for their work, but really you're left with the deductible in the end regardless. You can also be left with fraudulent claims on your homeowners insurance that reflect negatively on you.”
Let’s learn more about how roofing scammers work to take advantage of homeowners.
How Door to Door Roofing Scammers Defraud Homeowners
Door-to-door roofing scammers often come from other states and pose as local contractors to defraud homeowners. To avoid falling victim to these scams, homeowners should always make sure to deal with a local contractor. One way to verify this is by asking to see the contractor's identification, such as a driver's license or ID card. If they cannot produce a local ID, it is a significant red flag that they are not a legitimate local contractor. These scammers defraud homeowners by performing substandard work and disappearing, making it difficult for homeowners to get their money back or receive repairs for any damages caused by their poor workmanship. By hiring a reputable local contractor, homeowners can avoid these scams and ensure that their roofing needs are met by someone who will stand behind their work and provide reliable service.
Scammers and Poor Roofing Materials
It costs money for a roofer to buy materials. If they offer to pay your deductible, where exactly is that money coming from? There’s a high chance it’s coming from the cost of materials. That means that a scammer will use poor-quality materials!
Imagine getting a full roof replacement, only to have issues start up again in a few years. Worse yet, you go back to the scammer who “works” on the roof, damages part of it on purpose, and then charges you even more. This is obviously a nightmare scenario. And, it happens. This is why you need to be vigilant against roofing scammers.
Another corner these scammers cut is by paying their workers very little. So, if a roofing scammer is offering to pay your insurance deductible, that means less money for them to pay the person who’s doing the work.
Cheap labor oftentimes equals inexperience. Perhaps the scammer won’t have enough money for a supervisor to be on the job site. Or, even if they do, the supervisor and worker each do not have sufficient experience for such a large job. This could result in the roof not being fixed or installed properly, which will cause issues over the years.
Choosing a Roofer You Can Trust
When it comes to roofing, choosing a trustworthy company is critical. Trustworthy companies will not try to scam you by offering to pay the insurance deductible.
How do you find a great roofing company? You can:
- Work with someone local
- Ask friends, family, and neighbors
- Read online reviews
- Research social media
- Ask your realtor for a referral
Work with a local contractor! Ask to see a driver’s license from the person who’s knocking on your door and asking you to sign a contract. If they can’t produce a local ID or driver’s license they aren’t from your area. This is a huge red flag.
Getting a referral from past clients is one of the best ways to find a great company. After all, they probably had a great experience with the professionalism they were offered.
At Rhino Roofing, we pride ourselves by offering the same customer service, quality, and experience you deserve. And no, we will not offer to pay your insurance deductible for roof repair!
We do things by the book because we repair and install roofs the right way. There are no cutting corners with us. And you’ll appreciate this knowing that if you choose us, your roof will be in the best condition possible for as long as possible.
So, get in touch with us if you have roofing questions. Head over to our contact page next or call us at 630-988-5880. We look forward to speaking with you!