Roofing & Hail Damage Contractors: Advertising as Insurance Adjusters
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 “hail damage” roofing and exterior structure component related businesses over the last few years. Unfortunately we can’t speak for everyone but some of our 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% population growth rate from 2005 to 2008 for Colorado, but we also note other states have seen a notable increase in contractors while population declines. We assume Denver to be the highest concentrated advertisement area for these hail damage and roofing related businesses and note it’s population also grew at an astounding 5.89% for the same period.
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” or “hail” in their name), several questions remain about the legitimacy of these companies advertising themselves as insurance adjusters, experts, or having public adjusters operating out of the same offices. 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!
@Mark Gerardy
I appreciate your desire to protect homeowners from unethical roofers. I must, however, question something I’ve seen repeated by a few adjusters and you have stated here. You advise homeowners to get at least three estimates from reputable roofing contractors after they receive their settlements. My question is, why? I understand the need for several estimates before any major project is done by a contractor because these costs have many variables such as material , labor and fees. You can get a better idea of fair pricing from several estimates. But when an insurance company gives the replacement cost of a roof, that’s it! If the homeowner has a reputable contractor lined up to do the work, encouraging estimates just brings the “bubba’s” with their pickup trucks. I lost three jobs this fall because the adjuster showed them how to pocket insurance money for a sub-standard roof. The only purposes for multiple estimates is to commit insurance fraud or to save the insurance company from having to pay you all of your depreciation. You would do the homeowner well to advise them to find a reputable roofer in the area with a good history who will do the job for what the insurance will pay. Most of my work is insurance replacement roofs and I don’t give estimates. I do the work for what ever the adjuster says the replacement cost of the roof is going to be. On rare occasions the replacement cost is low or something was missed, but in each of these a phone conversation with the claims rep remedied the discrepancy. Most homeowners don’t know they have damage until a trained professional tells them. And insurance companies are not going to send adjusters out to find damage just because a storm came through their area, that’s my job and I’m proud of the work we do. Also, why would you encourage homeowners to try and prevent contractors from talking with their insurance companies? We work well with all of the carriers. I know most of the adjusters in this area and I have a good relationship with many claim reps. There is nothing nefarious afoot just because a professional contractor works hand in hand with an insurance rep to best take care of the homeowner. In any industry there will be unqualified, untrained or unethical people, including independent adjusters! But, I pray this is the exception.
Tim,
Thanks for your comment. We feel strongly that your comment produces some interesting theories and felt that it really gives way to at least one new post! We’ll amend this comment/reply to include all the subjects and angles you discussed, but for now we just covered the question of why we recommend getting three or more estimates for scenarios where a contractor is actively involved, or a contingency agreement is in place. Thanks for the inspiration and we’ll get to the remainder of your complaints here over the next few weeks.
Having a good roof is important! I wouldn’t mind spending the extra money to ensure that mine was at it’s best.
Independent-Adjuster.com has received a reply from the Colorado Attorney General’s Office of Consumer Fraud, in response to a request which we made on October 24th, 2010 regarding whether or not a complaint had been made against Integrity Roofing & Painting, owned and operated by Gerald Fristoe.
The reply we received is as follows:
“Our Office received your Open Records request regarding the company named below. The consumer complaint information you have requested is subject to the law enforcement exception to the Colorado Open Records Act, § 24-72-204(2)(a)(I), C.R.S. (2004). As such, we are unable to fulfill your request.”
The following URL links to the Colorado Revised Statute “Colorado Open Records Act” to which the Office of Consumer Fraud refers: http://www.michie.com/colorado/lpext.dll/cocode/1/3bdef/43779/4377b/43821/438d3?f=templates&fn=document-frame.htm&2.0
The statute states the following:
(2) (a) The custodian may deny the right of inspection of the following records, unless otherwise provided by law, on the ground that disclosure to the applicant would be contrary to the public interest:
(I) Any records of the investigations conducted by any sheriff, prosecuting attorney, or police department, any records of the intelligence information or security procedures of any sheriff, prosecuting attorney, or police department, or any investigatory files compiled for any other law enforcement purpose;
We’ll report further information as it becomes available and may open a separate post on the further investigation of Integrity Roofing & Painting
Integrity Roofing and Painting is greatful for our first amendement rights. However first amendment rights don’t allow citizens to commit a crime. Allegations of insurance fraud by Mark Gerardy have been presented to DORA. DORA
Independent-Adjuster.com (“website”, “blog”, “resource”) supports 1st Amendment rights to its users, contributors and readers (“you”). The Website and blog operate under the Communications Decency Act of 1996, as amended, which provides certain legal protections to this website, blog, and you.
We reserve the right to censor material which may be deemed as an advertisement at our discretion.
The Colorado Better Business Bureau indicates no complaints have been made against Integrity Roofing and Painting, or Mr. Gerald Fristoe, or his employees. We have received no reply at this time from the Colorado Attorney General’s office regarding complaints they may have received and will update this commentary as information becomes available to us and upon review of the same.
You should always conduct due diligence when considering the services of contractors, insurance companies, independent adjusters and any persons assisting with financial or personal business matters.
Please forward any inquiries relating to our position on this matter through our contact form, located here:
http://www.independent-adjuster.com/blog/contact/
The first to present his case appears to be right until the rest of the story is available. There are some negative comments posted on this blog about me and my company. We have spoken with the BBB and AG about these comments to provide the balance of information.
Integrity Roofing and Painting utilizes Xactimate pricing. Everyone on this post is familiar with this provider. Monthly price changes occur to reflect present day fair market value. We don’t override prices on the program.
Jerry Fristoe provides appraisal services as legislated by the state insurance board. Integrity Roofing and Painting doesn’t claim to have adjusters on staff.
Double speak or double talk is not a sales tactic that is engaged in by Integrity. The facts or presented up front. There are no mixed motives or hidden agendas in our dealings with our clients or insurance carriers. Matters of opinion are not stated only facts are presented. The insured must pay their deductible. We strongly disapprove of paying insurance deductibles. Sign credits, coupons and rebates are not given as a cover for insurance fraud. This is offensive to some people.
WE ARE UNAPOLOGETICALLY ETHICAL!
There is a complaint filed with the Colorado Better Business Bureau and the Colorado Attorney General against “Integrity Roofing and Painting” owned by Jerry Fristoe.
Nearly all of the allegations above, including more serious allocations, are also asserted in the complaints against “Integrity Roofing and Painting”.
My personal opinion of INTEGRITY ROOFING AND PAINTING is highly-unfavorable and the complaints against them are serious.
After you receive a fair settlement from your insurance company, I encourage everyone to get competitive bids from roofers, but do not let them communicate with your insurance company or they can cause trouble. Do not provide any roofer any information about your insurance company at all. Have an attorney review any contract before signing. Do not let any roofer argue or intimidate you, show them the door if they do, there are plenty of roofers that are doing quality jobs at a fair price.
Thank you very much for your comment Mark – we’re really trying to create a section on this website that deals in awareness of these issues. We’ve sent some correspondence to the Colorado Better Business Bureau and the Attorney General to confirm and see what information might be available. .
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.