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Question DetailsAsked on 1/27/2012

signed roofing contract based on insurance claim paid-want to hire another company-BBB/Angie's list quality/tactic complaints-what do I do?

over a year ago signed a roofing contract when promised help with the insurance company to get a new roof. Ins. co. paid the claim. In conversation with co. reps. was told company wanted to cut corners to save me money so little out of pocket expense. The ins. claim paid for the work that was to be cut. Since then other companies have said they advise against not replacing the flashing on my roof- one of the corners to be cut. The BBB and Angie's list had complaints in 2010 and 2011 against this company concerning quality of service and products. I want to use another roofing company. What can I do?

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6 Answers

Voted Best Answer

This is complicated because since you signed a contract.. you are obligated to honor it. Yet in my business, if a customer wants to cancel. I let them..

It also depends on your state laws. If the contractor represented you in the claim and IS NOT an licensed adjuster, you may have a strong legal stand to end the contract.

Also for the contractor suggesting that you "PROFIT" from the insurance claim is also Illegal in my state..

Answered 8 years ago by Onlythebestbuilder


A contract is only a legal document if there is a penalty written into it. Usually it's a wise idea to replace flashing while putting on new shingles. Reason being if you get a leak from the flashing later during the roof life it's difficult to replace the flashing without damaging the shingles resulting in more damage you had in the first place. Where are you located? Knowing this will help answer your question or feel free to call me to go over the legalities of your contract. To see if their is a loop hole out of it or not 407-353-0213.

Answered 8 years ago by Ilroofing2498


So just so I am sure I understand... A storm chaser came knocking on your door and convinced you that you had storm damage and would get you a "FREEroof". (Nothing is free). They convinced you to sign a contingency agreement, likely on the claim that they needed approval to climb on your roof, and in signing that agreement you signed away YOUR power of attorney to negotiate and make decisions on repairs on your own home. Then you discovered that this company, like most storm chasing companies, is complete manure and you regret your decision. Would this sound accurate?

Well the good news for you is that in some areas, a contingency agreement is not legally enforceable. The bad news is 2 part, it is enforceable in some areas; and even the areas where it is not enforceable you are likely to have a legal battle to get out of it.

Ok so what will happen? Well, most likely the contingency agreement will have a cancellation clause, which will state something to the fact of if you chose to hire someone else you will pay to the company something like 30% of what they got from the insurance. In my opinion this part of the clause on a contingency agreement is fair, (30% may be unfairly high IMO) and this is because there are "private adjusters" out there that will perform this service for you as a consultant and they would charge similiarly.

This whole "storm restoration" is mostly a scam. The storms always bring out the worst in people, both consumer and contractor. However, there are good companies out there providing good honest service, but they get lumped with the majority of bad apples who steal from everyone. Many storm chasers inflate their bill to the insurance company, they provide sub standard work to the home owner. When the work starts to dry up, they stop paying their sales reps, and stop paying their suppliers, finally when they are out of money (because it's IMPOSSIBLE to be profitable working for the peanuts insurance companies offer) they skip town with work left un done and down payments in their pockets. This happens time and time again, storm after storm... just google it.

For what it is worth, when someone tells me that they have storm damage and insurance is paying for it. I ask them how much they can afford to come out of pocket. Just food for thought.

Ok so any time a roof is replaced, all flashings should be replaced. The flashings should never be reused. They may loko good now but will they look good in 3 years, 5 years? Why replace just the shingles, they are only one component of the roofing SYSTEM. The flashings are the area of the roof which the roof will leak first, thus the most critical IMO, however they require specially trained and skilled roofing craftsmen, and these craftsmen cost more. Most likely the company can't replace the flashings, they don't know how. They'll just slap a bucket of tar on it. Oh by the way, what they are doing is FRAUD, and is a reason IMO insurance companies should inspect each and every roof after it is replaced and before it is paid for. I couldn't tell you the number of fraudulant roofing jobs I have seen installed by insurance companies; Flashings are a large part of that.

I could go on and on and on ranting about your situation. I see it hundreds of times a year. It just sickens me to my core.



Answered 8 years ago by ReliableAmericanRoof


if a contractor, such as Reliable American Roofing, tells you that you will need to pay additional monies out of pocket on top of the ins co's proceeds....stay AS FAR away from them as possible....they are just a basic roofing co and dont understand how to read an ins estimate....there are bad people in the storm restoration industry and there are good ones....find a good one, research him, talk to past customers and make your choice from there...DO NOT go with a standard roofing companyt not versed or educated in the insuance restoration industry or the processes involved to invoice your insuranve vomapny for RECOVERABLE DEPRECIATION.....if your ins co has agreed to pay for the entire roofm there is enough money on the estimate to replace the roof, up to code and perfectly...anyomne who says there isn't is a fool and is misleading you

Answered 7 years ago by cewoodford


This is a pretty standard contract employed by reputable roofing companies when they represent the homeowner's interests to the insurance company. Many times the adjusters sent by the insurance companies will deny the claim -- especially where the obvious storm damage to the roof is marginal -- unless they are confronted with clear and undeniable evidence that it is valid. Thus having a knowledgeable roofer on site when the adjuster does his inspection can turn a most-likely-denied claim into an easily approved claim and save the homeowner from endless hassling with the company.

Roofing companies simply want to be assured that if they perform this valuable service for the homeowner, at no charge, he will in fact let them do the repairs and profit from the work, rather than turn around and give the job to someone else who promises to "save them their deductible" or some similar sales gimmick. There is nothing wrong with this contingency contract practice.

Homeowners should normally expect to pay the deductible amount specified in their policies. The insurance companies will pay the full amount of the regionally adjusted average cost of the stipulated repairs, which includes reimbursing the depreciation once the work is done. They will reduce their total payment by the amount of the deductible. So there is no way for the homeowner to "get a free roof" or to profit from the roof job, without 1) Skipping some of the work or 2) Asking the roofer to discount the job and/or rebate the amount of the deductible. Either one of these practices is considered by most insurance companies to be insurance fraud, but many homeowners seem to expect the roofers to go along with them if they want to do the job.

I hear lots of complaints about the greedy "storm-chasing" roofers, but the fact of the matter is, so many "honest" homeowners are really the greedy parties who can't see that paying their standard $1,000 deductible to get a brand new $15-to-30K roof is really a great deal for them. Especially if their storm-damaged roof just happens to be 10, 20 or more years old and will soon be due for replacement anyway. But the insurance company replaces it at full value, minus the deductible.

Just thought I would add a little more balanced perspective to the discussion.

Answered 7 years ago by wheelcom


I hate to differ with llroofing, but when he said this - "A contract is only a legal document if there is a penalty written into it" - that is NOT correct. Once the document is signed and dated by both parties, provided it has the other essential elements of a contract (basically who, where, what, when, how much), it is a valid legal document. The lack of a cancellation penalty does not make it not a contract. That just means that in a cancellation dispute, the contractor would be eligible for what is called "equitable compensation" or "equitable recourse" - basically to be "made whole" to where he would otherwise be.

If he has done very little or no work, then that would be compensation for his time and any costs in putting the contract together and getting it signed, and in some states his lost profit based on his bid as well. If work had started, then all his labor and costs and related overhead and markups on costs to date would also generally be allowable, along with his profit, assuming he was not at fault or initiating the unilateral cancellation, and even then in many instances.

Answered 6 years ago by LCD


Couple of other htings I noticed in reviewing this question as a possible reference for another similar question:

1) one comment talked about the insurance company reimbursing the "depreciation" - or the portion of the total reroof job which basically replaces (on a lifetime percentage basis) the "consumed" portion of the life of the roof as well as the reminaing life - giving you a new roof (minus your deductible) regardless of the remaining life of the original roof. That is generally only done if you have "replacement cost" insurance (which has a higher premium).

If you have the cheaper "depreciated value" or "amortized value" insurance, say your roof is 2/3 of the way through its life - they will only then pay for the "remaining life" if they pay for a reroof job - or they would pay for 1/3 of the estimated (or negotiated if you challenge their adjusted value) reroof cost estimate, then minus your deductible from that. So - say you are theoretically close to the "life" of the roof - the amount you get paid by the insurance company might be zero after your deductible.

And zippo if you are past the reasonable "life" of the roof - which if you have long-life shingles you might have to argue with them because they might assign a 20 year"life" on a roof with expected 30-35 year life. I have also seen shady insurance companies claim a 10 or 15 year life on normal composition shingles which likely have a 20+ year life. if you have replacement cost insurance, unless the roof was pretty much functionally shot or falling apart from heavy moss cover or such, you would commonly get coverage (minus your deductible) even past the normal life - I have seen 30+ year roofs covered provided they had been maintained and were in decent, thoguh aged, condition. Obviously, if the roof was leaking and rotting the sheathing before the claim incident, don't expect a replacement.

2) On the flashing issue - flashing is, in many locations on a roof, OVERLYING the water barrier, acting as the primary backup to leakage through the shingles layer (or with open valleys, ads the primary water-preventing layer) and is also perforated by the original staples or nails, so leaving it in place also means either leaving old water barrier (and along with that, not seeing the condition of the sheathing under it) or putting the water barrier in the wrong location in the roofing layers - and having a flashing with holes through it and the water barrier which can then leak when it is doing its job.

My opinion - other than embedded chimney flashing in excellent condition (or quite new due to replacement), which can commonly be properly interleaved with the new shingles and water barrier on a reroof job, flashing should pretty much always be replaced during a reroof job. It is also not a big cost item on most roofs.

Answered 2 years ago by LCD

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