How Roofing Companies Fraud Insurance Carriers

As with any industry involving insurance, roofing is prone to fraud. Want to understand how roofing companies fraud insurance carriers? This is often what we see:

When Your Roofer Offers a “Free Roof”

We all know there’s no such thing as a free lunch, so what makes roofing contractors thing they can offer a free roof? There are ways that they “absorb” the cost of the deductible- usually $1,000. Here’s how.

So let’s assume the roof replacement for your home will cost a grand total of $12,000. If you have an RCV policy, most insurance carriers will pay the cost less the deductible.

In this example, that means the insurance company will pay $11,000 (after deducting the $1,000 deductible) and the homeowner will pay the remaining $1,000.

Why?

The roofers that are trying to find creative ways around this will often “pay” $1,000 to put a sign in your yard as a marketing payment.

There are some underlying problems with this strategy.

First, if they pay you over $600 then they’ll have to provide a 10-99 which many roofing contractors don’t.

Secondly, since they’re taking $1,000 less to cover the cost of your deductible you’re left to assume where that cost is cut from. Perhaps they’re taking $1,000 less profit or are they maybe cutting corners to save cost.

While this method isn’t exactly fraudulent, it definitely walks a fine ethical line.

When Your Roofers Provides Two Differing Invoices

This isn’t as common as the method above, however, we have heard of stories of this happening.

So going back to our $12,000 roof example, this is where the roofing company provides two different invoices. The one they give to the homeowners to keep for their records might indicate a $12,000 roof. The fraudulent invoice provided to the insurance company might say it was a $13,000 roof.

By the time the insurance carrier subtracts the deductible off the fraud invoice, it would come out to be the total amount of $12,000.

At this point, the homeowner may have knowingly or unknowingly conspired with the roofing contractor to commit fraud.

These exaggerated claims can land both the roofing company and homeowner in hot water including fines and potential arrest. Homeowners should be vigilant against being an accomplice to a crime.

Make sure to do your research and only use reputable roofing contractors. This is one of the ways roofing companies fraud insurance carriers.

What’s the Big Deal?

At the heart of both methods to avoid paying a deductible lies integrity issues. If your roofer is willing to fraud or find roundabout ways to give you a “free” roof then it’s concerning.

What other areas will they cut?

If they’re lying to insurance, what makes you think they won’t lie to you?

We encourage you to do your research when searching for roofers. You can start by checking out our guide on what screening questions to ask here.

If you’re ever looking for Omaha Roofing contractors, then we would be happy to provide a FREE inspection. Call us at (402) 889-3381 to schedule your time.