Roofing Contractors: Advertising as Insurance Adjusters and Experts
Our Denver insurance claim services office has taken notice to the rapidly evolving concept that, at least in Colorado, there has been an immense growth in the number of roofing related businesses over the last few years. Unfortunately we can’t speak for everyone but some of colleagues in the area contribute this increase is a direct result of population growth in Colorado over the same time line. A quick glance on Google’s Public Data chart shows a massive 5.93% growth rate from 2005 to 2008 for the state overall. When comparing to the highest concentrated advertisement area from these roofing related businesses we turn to Denver’s population charts to find that it also grew at an astounding 5.89%.
We know that population growth was evident throughout the area but does that mean the number of roofs in the area grew so rapidly that it caused a major and rapid amplification in the number of roofing businesses? What about the number of roofing businesses that claim to specialize in hail or wind related damages? While we’re working on compiling data about the actual number of roofing related businesses (read as businesses with “roofing” in their name), several questions remain about the legitimacy of these companies advertising themselves as insurance experts. Some have even gone as far to say they have independent adjusters on staff, or that they have public adjusters waiting to prove the need for their often excessive costs of $600 per square foot on regular 3 tab asphalt composition residential roofing.
What do you think of these roofing related businesses? Assuming all of the damages were legitimate – are the costs that some of these companies associate with them?
Have you experienced working with contractors that portray themselves as salesman? Do you think charging excessive costs for roofing constitutes some form of insurance fraud or fraudulent conduct?
We’d love to hear your input on working with these contractors and if, as an independent adjuster, you have seen your claim service time increase as a result of dealing with hostile or price gouging roof related businesses. Leave a comment!
Most insurance companies will replace damaged items and materials with the same type and quality of materials you had before any storm damage. For example, if you had a fiberglass roof, the insurance will pay to repair or replace damage with fiberglass materials—but won’t pay to replace it with more expensive slate tile. If you like we can estimate additional cost if you are thinking of upgrading you roof or property that was damaged.
I am a licensed adjuster and I do work for one of these companies. We are as honest of a business as anyone. Its like any other businesses. You have some good, honest ones but then you have all the bad, cheap, stealing ones to that give us a bad name. I have seen many roofs that really didnt have damage get approved through insurance, very high prices per square, outsiders taking starter checks and leaving, people saying that they are licensed adjusters and so on. It is a shame that people are doing this, but please dont label us all bad. I personally work with adjusters from insurance companies and many appreciate my service.
Casey – One question remains from the insurance community. We’re not trying to be demeaning but what are some reasons a “licensed adjuster” go to work for a roofing company? Also, are you a licensed public adjuster or just licensed to work in your state? What state are you in? We’re curious to know more!
It does seem odd that there has been this explosion of roofing contractors but I think this happens in industries sometimes there is just a bunch of people with more ambition than knowledge and so they just go for it.
Well said Jon!!
It may be of benefit to the consumer but my insurance fees will surely be putting me out of business!
In today’s economy homeowners need to be especially careful when hiring a contractor for any home improvement. The contractor registration does not provide any protection to the homeowner. The key for a homeowner is research, research, research. It is time consuming, but worth taking the time to make sure you know the contractor.
Things sure have changed over the years. I remember when we barely argued about pricing. Now these guys are asking $650 per square for 3 tab roofing. Unbelievable! Who’s bearing the expense of these “salesman”? The adjusting companies are because we’re spending the time to fix them on a flat rate agreed schedule.
It’s sad to hear that the insurance regulatory agencies are turning a blind eye in lieu of tax dollars. Perhaps someone will start a revolution and start documenting this, then suing the roofing outfits for a tort of some kind – or forcing insurers to require standards not only in estimating but agreeing to costs…
As always, it’s prudent to do alot of research before deciding to business with any type of contractor, whether it’s a roofing company or builder or any high ticket items. Caveat Emptor.
This is really a hassle to every adjusting company, adjuster and insurance carrier out there.
There has been rumblings of legal action by PA’s against these contractors “representing” the clients without licensing her in Pennsylvania. There are a lot of PA/Attorney relationships here, so it could happen. While not typically sympathetic to PA’s, this does appear to be an infringement upon their profession.