When it comes to roofing, there are a lot of potential scams out there. From contractors who take advantage of unsuspecting homeowners to companies that try to upsell them on unnecessary services, these scams can cost you time and money. It’s important to know what kind of roof scams are out there so you can stay safe from any shady tactics when hiring a contractor or purchasing materials for your roof project. You can ensure the success of your roofing project and avoid these 12 most common roofing scams by learning how to identify potential warning signs and properly vet local roofers.
1. Mysterious or Exaggerated Damage
If a contractor cannot identify the specific damage or overestimate the damage to your roof, be cautious as they may be trying to suggest unnecessary work. Moreover, some roofers can deliberately cause damage during a free inspection to raise the repair costs.
2. No Insurance or License
It is important to research whether your state requires roofers to have a license. If it does, make sure to ask for proof of that license and the contractor’s liability insurance. Hiring a contractor without the necessary license or insurance can be risky.
3. Requires a Large Down Payment
Beware of contractors who ask for a big down payment as they may be planning to scam you by taking your money and disappearing. Choose a contractor who requests a fair down payment, usually 15% or less of the project’s total cost. Also, make sure they specify the terms of further payments in a contract.
4. Asks to Be Paid in Cash
If a contractor requests payment in cash or provides a discount for cash payments, be cautious. These are indications that they might take your money, not perform any work, and leave without you being able to locate them.
5. High-Pressure or Time-Sensitive Sales
If any contractor, whether they specialize in roofing or not, tries to rush you into signing a letter of intent or a contract, it’s advisable to be cautious. It’s crucial to obtain other quotes before committing to any binding agreement. Having trust in your contractor and being comfortable with the price is crucial before making a final decision.
6. No Contract
It’s important to avoid roofers who want to start repairing your roof without a contract. Having a contract is crucial because it protects you from unexpected price hikes and unfulfilled work. It’s a written agreement that specifies the entire scope of the project and the terms of payment.
7. Discounted Materials
It’s better to avoid “special deals” on discounted or leftover materials offered by certain contractors if you want your roof to last. Instead, get quotes from at least three different roofers and thoroughly research the materials they plan to use for your roof repair.
8. Extremely Low Bid
If a contractor is offering a significantly lower project estimate than other contractors, it may not be a reliable deal. Such contractors may quote a lower price initially and then hike up the price as the project progresses. To ensure that you are not overpaying, obtain at least three bids from different roofers, and have a detailed discussion with them to know what work they intend to carry out. Additionally, it is advisable to have a contract in place that outlines the terms and conditions, including any possible changes to the cost.
9. No Online Presence or Reviews
Finding information online about your roofing contractor should be easy. Look for reviews from other homeowners and confirm the company’s location. You can also check with the Better Business Bureau to see if any complaints have been filed against them by other homeowners.
10. Asking You to Get the Permits
It is the responsibility of the contractor to obtain the required permits for the project. If a roofer asks you to obtain the roofing permits, it could mean that they are unable to obtain the permit or have had issues in the past with obtaining permits.
11. Insurance Fraud
If a roofer asks you to sign an insurance check over to them or offers to cover your insurance deductible, this could be an attempt to engage in insurance fraud. Even if a roofer offers a lower price for the work, it may not be a legitimate offer. The roofer could take the full payment from the insurance company and keep the excess amount, which is considered insurance fraud.
If a contractor asks you to sign an Assignment of Benefits (AoB) before beginning work, it could also be a sign of trouble. An AoB allows a contractor to act on your behalf when dealing with your insurance claim, which could give them a chance to commit insurance fraud.
12. Storm Chasers
Roofing contractors who chase storms go to areas affected by severe weather hoping to get more business. They’re commonly referred to as “storm chasers” and may approach homeowners, offering free inspections and claiming to have seen roof damage. These contractors might take a deposit, do poor-quality work, and then leave before finishing the job.
Avoid These Roofing Scams
It’s important to be aware of these warning signs when looking for a roofing contractor. It pays off, in the long run, to do your research and take precautionary measures such as obtaining several bids, researching materials used, asking for references, checking reviews online, and having a contract that clearly outlines all terms before signing anything. Don’t let yourself become another victim of storm chasers or insurance fraud by being mindful of any suspicious behavior from contractors you may encounter. With due diligence on your part and knowledge about red flags associated with poor quality workmanship or fraudulent activity, you can find an experienced roofer who will deliver excellent results at a fair price.