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Question DetailsAsked on 9/29/2014

Is it normal for a roofing company to get you to sign a "Acceptance of Service" agreement before an estimate?

This agreement says that we will engage this company in the listed services. It also says the company will pursue the insurance claim. So basically, the company looked at our roof, made an estimate, sent that estimate to the insurance company (and not to us at any point) and then then insurance company sent us a check for this work.

Does this sound normal or reasonable? I honestly have no idea how this industry works. My mother signed this agreement without fully understanding it, and now would prefer to work with a different contractor.

She is annoyed with the first company because they never sent her an estimate, or explained any part of the inspection or estimate, and are now asking for 50% up front to do the work.

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2 Answers

Voted Best Answer

Basically by doing this you have no control over your claim or money whatsoever now. They can get more money out of the insurance company for overhead and profit as a general contractor, request supplements for additional "damages" discovered, etc... All of which pretty much without your knowledge. Then at that point they may or may not actually do the additional work. Plus you don't know what is contained in the scope of work the ins co is paying for, therefore, you don't know if they're doing all of the work that the ins co paid for. I have never done business this way, nor would I. Just the way everything is orchestrated, it has schiester written all over it. Not to say who you are dealing with is less than honest, but when the contract reads like this one does, they have a wide open field with you and your ins co to rob each of you bind if they are dishonest. Do your homework and research the company via Angie's List, BBB, and any other internet prescence they may or may not have. Be very cautious.

Kris Howard-President/CEO

DCT Roofing Solutions Inc.

Source: 30+ years in the business.

Answered 5 years ago by Roofman1


I agree with Roofman. I am not a fan at all of "storm chasers". The entire industry is being hurt by these companies. They will continue to raise all of our insurance rates, because of the way they go about doing business.

They are also appealing to peoples innate feelings of greed. "If I can get you a free roof, can I do your job?".

The problem exists that many are from out of town and once the job is done and the customer needs service, they will need to appeal to a local company for service.

With that being said, I do understand the model. They are sending people out to generate the claims. Then they are trying to hold onto the job by getting the contract signed, it is also called a "subject to" contract. Basically, their contract is subject to the insurance company approving the claim and if they do, it is their job.

Make sure your insurance company knows you do not want that company doing the work and that your mother did not fully understand what she was signing.

Also be careful. many of these companies are very aggressive in how they handle those agreements, and will pursue them.

Answered 5 years ago by ExteriorUpgrader


I totally agree with the prior two comments - this business model stinks, and I continue to be amazed insurance companies fall for it.

The normal way this works, with an assignment of benefits like this, is the company agrees to do the repairs the insurance company agrees to, and be paid by them - so in this sort of case the homeowners advances or pays ZERO $ (except maybe deductible on the insurance claim), and the contractor gets paid from the insruance claim settlement check.

This is a method commonly used by scammers, so I would check with the claims department of the insurance company if this contractor is considered a scam risk by them, and ask about the payment details worked out between them and the contractor, at a minimum.

Sounds like you need a go-between with the contractor - and if out of town so you cannot fill this role, perhaps an attorney is in order to be sure she does not get scammed, the contractor does not get paid before the work is complete and satisfactory, and that she gets her lien releases from the contractor BEFORE he receives payment.

I am not saying this contractor is necessarily crooked - but this is the way many scam artists work, so better beware and tread carefully, and make sure the insurance company does not issue payment directly to the contractor without her approval for payment.

Answered 5 years ago by LCD

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