Red Flags and Re-inspections

Many homeowners become frustrated when they are told that their roof has no damage and yet they hear and watch a great deal of their neighbors receiving new roofs over the next several months. Why does my damage not warrant a new roof according to my insurance company, but the Jones' insurance company is giving them a new roof? My insurance adjuster says there is no damage on my roof, but these roofing contractors say their is damage. Who should I listen to? What are some red flags to look for in Contractors? These frequently asked questions will be addressed in this weeks edition of Coffee & Claims with Midwest Construction.

Why does my insurance company say I don't get a new roof and my neighbors' insurance company says that they get a new one?
The answer to this question is very simple: Insurance companies try not to pay out. Payments to the insured = outgoing cash flow and collecting premiums from the insured = incoming cash flow. More incoming than outgoing leads to a profit. You can't blame the insurance companies for trying to make a living, but you can blame them for trying to make a living at your expense.

If my insurance rep and/or adjuster says I don't need a new roof but a contractor says I do then who should I listen to?
This is going to be a hard question to answer because really it's a finger-pointing situation. Your insurance will claim that contractors are greedy and are trying to take advantage of the situation and that they are just trying to get money. In the same way your contractor will tell you that your insurance company is trying to keep from paying you what you deserve. If the insurance company can keep from paying you back the coverage that you pay them for in premiums, then they are making money off of you.

Thanks, Brian I get that...why don't you tell me something I don't know.

Did you know that your insurance rep, the guy who you are friends with, is paid by the insurance company to work on behalf of the insurance company? It's true. His best interest is to protect the people who pay him. When you pay your premium you are not paying your insurance rep. You are giving your money to be held, in theory, until you need it when something happens to that specific thing you are insuring. It's different from a bank in the sense that it is very particular with what the money can be used for. If you are insuring your wallet then you need to put your money in the bank so that when something happens and you need money then it is there to come back to you. And since money can be used for anything then you are in a sense insuring everything. With Home, Auto, Life, and other types of insurance you are banking your money with someone to give it back only when you need it for those specific entities which you are paying to be insured. 

That being said if the insurance company can find a way to not give the money to you for the object being insured then, in effect, it's like the bank not giving your money back that you gave them to hold. If they just flat out said "Sorry but we are not going to pay for your roof because we don't want to" there would be an uproar. However if they say "Sorry but we are not going to pay for your roof because we don't think the roof is in need of a repair" then the homeowner, who most always can't refute their proposal due to a lack of experience on the matter, is forced to "trust" the insurance company's judgement call. Hence, the insurance company saves the thousands of dollars they should have paid out to the insured. 

we are only half way through this answer? i'm going to get a coffee...I'll be right back.
-Take your time...

Ok. Now we address all of the upstanding citizens that are contractors (I'm kidding).
When you are involved in a storm of noteworthy magnitude, contractors seem to appear out of thin air. And they all say the same thing "You have damage!". Why do they all say this? Because the answer is simple: They are trying to make a living. And like the insurance companies you can't blame the contractors for trying to make a living, but you can find fault in them for trying to make a living at your expense. 

Here are some red flags when it comes to contractors!!
If the contractor says to you "I can see from the ground that your roof is damaged." then politely close the door and say his services wont be needed. It is virtually impossible to see from the ground the necessary indications that a roof or shingle has been compromised. However, if he can show you collateral damage (damage to other smaller facets on the home) from the front door step that you may not have noticed before then you just may have found your man. 

If his license plate is from out of town take note. This doesn't necessarily mean the contractor can't be trusted, but it's evidence that he is here strictly for the storm and may be a little more adept to fabricating "ghost damage" so that he can get what he came here for: $$$.

If he does not have a solicitor's permit for the town he is conducting business in, and the town requires a permit to solicit, then don't bother with him. It shows he doesn't value rules and regulations and that he may cut corners. Even if it is a tiny corner that is being cut, it could lead to a tiny corner in your restoration being cut which can lead to BIG problems. 

If he offers to cover, "eat" your deductible, not charge you your deductible, or bribes you with incentives (I've seen flat screen TVs and Blu Ray DVD players being offered for the right to work the homeowners insurance claim) then politely, or rudely, decline his services and take note. This is fraudulent behavior. Not the type of character asset you want in a person working on your home and on your behalf.

What it comes down to...
To break it down: If the insurance company says your roof is fine but many other neighbors in your area are getting new roofs then take that as a sign that maybe your insurance company is being a little too tight with your coverage. Let some other contractors take a look at your roof and see if they can convince you that there is in fact damage up there. Ask them to prove it to you. If they can prove it to you then you know that they have a chance to prove it to your insurance company. Watch out for shady contractors! Ask them the good questions. "Where are you from? Where do you get your materials? What is damaged and why is it considered damaged? Do you have a solicitor's permit? Who is your boss? Where is your office?" If you don't feel comfortable with there answers then do some research on the company after the contractor leaves and see if what they say lines up with what you find (or more often than not DONT find).


I hope this was an informative second edition of Coffee & Claims with Midwest Construction. 

Any questions or comments can be emailed to Brian Alexander at brianontheroof@gmail.com. 

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