After a heavy snow, rain, or hail storm, you can almost expect to get a knock on your door from a roofing company representative who “just happens to be in your neighborhood” looking at damaged roofs. After a quick inspection, they convince you that your roof has damage that will likely be covered by your insurance company. All you have to do is put in a claim and use that money to get a brand new roof installed --
-- except you may wait months and months after you’ve paid the roofing company for work to begin, if it ever does. Not only have you lost the insurance money, but you may also face liens from material suppliers who were never paid, and you might lose your insurance coverage altogether. So, what do you do to avoid becoming a victim of this wide-spread scam?
Some basic tips to avoid roofing scams:
- Never allow an uninvited contractor to inspect your roof or to contact your insurance company directly;
- Say NO to contractors using high pressure sales tactics or requesting that you make an immediate decision;
- Before you spend any significant amount of money on a new roof, contact your insurance company yourself and arrange to have an authorized adjuster come to your home; and
- Obtain bids from at least three different contractors and check each one with organizations like your local Better Business Bureau.
Know your basic rights:
Colorado law requires that a roofing contractor MUST provide a written contract that includes:
- the approximate dates of service;
- the approximate costs of the services;
- the roofing contractor's contact information;
- identification of the roofing contractor's surety and liability coverage insurer; and
- information regarding your right to rescind the contract within seventy-two hours if your insurance company denies your claim, and
A roofing contractor MUST include, on the face of the contract, in bold-faced type, a statement indicating that the roofing contractor shall hold in trust any payment from the property owner until the roofing contractor has delivered roofing materials at the residential property site or has performed a majority of the roofing work on the residential property.
If you believe you have been victimized by a home repair scam or wish to suspicious activity, please file a report here.