[Sandy and Ed]

Originally Posted by Nacoma

Here’s the real problem with the roofing scams. In my opinion it’s often not the fault of the homeowner (who wouldn’t want a free roof?) or roofing company scamming homeowners by claiming they need a new roof when they really don’t. The blame is squarely on the insurance companies for choosing not to pay for legal fees to fight theses lawyers the roofing companies have hired. The insurance companies have chosen to just pay for the new roofs and pass the expense off to all of us homeowners by upping our premiums. Insurance companies will always take the least expensive option on any matter when deciding to honor any claims including unfair claims. Rather than paying for expensive legal fees fighting cases they often choose to just pay and pass the expense off to the homeowner by raising insurance premiums. SO; by THEIR DECISIONS ALONE not to to pay for litigation and fight such faults claims as the roofs in Florida your premiums go up or in some cases they just fold up and and move on refusing to operate in your home state anymore.

You are, unfortunately, spot on. We, the home owner, are the point of least resistance. I’m blessed having USAA but wonder what will happen when I truly need a new roof. Will they hike my rates? Drop me?? Thus far I’ve told all those scam roofing companies (represented by clean cut nicely attired young men) to pound sand when soliciting me for a new roof. Maybe USAA will break the mold and go after them? I think not

[sowtime444]

When my in-laws bought their home 2 years ago they were told by the insurance companies that because the roof was over 10 years old they couldn't get insurance. So I asked a few neighbors who looked like they had new roofs which contractor they used. They said something like "Oh some guy came by after a storm and asked if we wanted a new roof paid for by the insurance company and I said yes". So now we are all "paying for it".

[NoMo50]

While the "roofing scams" may not have been perpetrated by the insurance companies, they have certainly facilitated the spread of the scams. Insurance companies are under no obligation to pay fraudulent claims. Zero. In fact, the typical insurance contract clearly spells out that fraudulent claims are not covered. But, the companies continued to pay claims they knew were not valid. Because of this, they were/are complicit in the scam.

You must remember, though, that the insurance industry pays out in excess of $100 million to lobbyists at the state and federal levels. These lobbyists work very hard to ensure that you, John Q. Citizen, pay the ultimate cost of any "crisis" endured by the insurance industry.

[MidWestIA]

IF someone contacts you to do work or a service you need to check with pros in that area that you contact - it's probably bogus. And NEVER give your id or finance info to them. They figure us older folks are easy marks.

[Miboater]

Originally Posted by NoMo50

While the "roofing scams" may not have been perpetrated by the insurance companies, they have certainly facilitated the spread of the scams. Insurance companies are under no obligation to pay fraudulent claims. Zero. In fact, the typical insurance contract clearly spells out that fraudulent claims are not covered. But, the companies continued to pay claims they knew were not valid. Because of this, they were/are complicit in the scam.

You must remember, though, that the insurance industry pays out in excess of $100 million to lobbyists at the state and federal levels. These lobbyists work very hard to ensure that you, John Q. Citizen, pay the ultimate cost of any "crisis" endured by the insurance industry.

From what I understand happens is the insurance companies will deny the claim and then the attorneys for the roofing company will sue the insurance company. Then the insurance company will settle as it is cheaper than going through the court system.

[seecapecod]

Originally Posted by pdp07

Maybe insurance companies should prorate the life expectancy of roofs. A 30 year roof that is 15 years old, they pay 1/2 you pay 1/2.

That’s what I have with Kin Insurance- couldn’t insure the house otherwise as the age of the roof is 12 years old.

[Randall55]

Originally Posted by Gladys Turnip

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Okay, this is really good. That is, like the OP, I also kept hearing about the "roofing scam" and wondered how it worked. And this explanation from Randall55 is excellent, thank you.

But my question is this phrase is Randall55's explanation: "a new roof paid in full by the insurance company."

WHY would the insurance company pay for a new roof without confirming that the roof was in fact damaged? With automobile collision damage the insurance company sends out an adjuster to evaluate the claim. Wouldn't the insurance company do the same thing with an alleged damaged roof? Could someone please explain this. Could the insurance companies really be that dumb? And finally, once this scam became widely known, couldn't (wouldn't) the insurance company put a stop to it by starting to send out adjusters to confirm the damage? Thanks for any insights you might have.

The scammers know which insurance companies will pay for an entire roof without argument. They also know which companies will send out an adjuster. In this case, they tell the homeowner, sorry, I spoke to your agent they are not going to cover the entire cost. So, give them a call and we will repair your roof. This way, there will be no cost to you. OR, if a roofing company is desperate for work, they climb back on the roof and cause damage themselves. When the adjuster comes, he sees damage to the roof. Then agrees to pay. This is the reason the roofer asks for your insurance information. You could easily call but he wants to know how to proceed with the scam. Once they know your provider, they finish with your roof before leaving. The scam is good to go!

Like you and I, these guys have bills to pay. They cannot afford to go for months without a roofing job. So, they create the jobs themselves. 5 or 6 roofs in one neighborhood gets their bills paid and then some.

[Marine1974]

Roofs are generally depreciated over time by insurance companies. I believe the insurance company will only pay you 7500 on a 5 year old roof
you paid $10,000 and a deductible.

[JGibson]

Originally Posted by Miboater

From what I understand happens is the insurance companies will deny the claim and then the attorneys for the roofing company will sue the insurance company. Then the insurance company will settle as it is cheaper than going through the court system.

Then maybe it's the legal systems or overpaid attorneys that is at fault for making it so difficult and expensive to defend these fraudulent cases if it's cheaper to pay for a roof than fight the case.

[Randall55]

Originally Posted by Marine1974

Roofs are generally depreciated over time by insurance companies. I believe the insurance company will only pay you 7500 on a 5 year old roof
you paid $10,000 and a deductible.

Sometimes. Even so, homeowners are willing to go along because the insurance company is footing some of the bill. The homeowner is thrilled to save thousands.

[DiandJay]

As another POV we had a small tornado whip through our neighborhood a few years back. Took off a small section of our roof (and a few of our neighbor’s too). Called in the same company that put our 4 year old roof on when our home was built.
While up on the roof preparing it for the new shingles they discovered that a larger section of it was put on wrong and had to be taken off. Fortunately, we had purchased enough shingles to fix the larger area (per the advice of our insurance company). When the young man told me of the issue, I told him it was their company that had installed the roof when it was built. He apologised and looked embarrassed. They had no idea of making more money as they were simply there to repair our newer roof from storm damage. I told the company’s manager who came by to inspect the work when it was complete. He didn’t look happy or surprised to hear there was apparently a roofing job done wrong on our home during construction.

[MSGirl]

Originally Posted by Tavernierlady

I was just walking my neighborhood, the new section of village of Charlotte, and noticed on rabbit run six homes out of 13 had assigned roofing by skylight roofing. These homes must be less than 10 years old. This sounds like a scam to me.

Those roofs being replaced are due to a manufacturers defect on the shingles. The manufacturer, came out (Certainteed) and checked the shingles and found the defect to be true. Insurance is not involved here. The manufacturer, because of the defect, paid the homeowner direct the cost of labor and new shingles. The homeowner pays the rest.certainteed roofs are under warranty for 10 years.

[Gatorfan1]

Originally Posted by Gladys Turnip

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Okay, this is really good. That is, like the OP, I also kept hearing about the "roofing scam" and wondered how it worked. And this explanation from Randall55 is excellent, thank you.

But my question is this phrase is Randall55's explanation: "a new roof paid in full by the insurance company."

WHY would the insurance company pay for a new roof without confirming that the roof was in fact damaged? With automobile collision damage the insurance company sends out an adjuster to evaluate the claim. Wouldn't the insurance company do the same thing with an alleged damaged roof? Could someone please explain this. Could the insurance companies really be that dumb? And finally, once this scam became widely known, couldn't (wouldn't) the insurance company put a stop to it by starting to send out adjusters to confirm the damage? Thanks for any insights you might have.

The insurance adjusters did deny the claim. Since the roofer had the homeowner sign their benefits over to them, they called their attorney who had been waiting and lawsuit filed. Insurance companies had to make a decision. Pay for roof or pay hundreds of thousands of dollars to fight the claim n court. (Still ended up paying $ 1.7 billion in just over a year) bankrupted company’s and many just packed up and left Florida. The companies that are still in Florida had to raise their premiums because they are insuring a lot more clients and had to build their reserves back for future claims. Think about this, out of 100% claims in US, 70% are filed in Florida.

[Rzepecki]

It’s a scam started by insurance companies about 5 years ago. When your roof is 15 years old, your insurance goes up because of the age of your roof - no matter that it’s a 25-30 year roof. Homeowners got tired of this scam and found a way to make insurance companies pay for their capriciousness. There is no more wear on your roof down here from the heat and the wind (in the middle of the state) than up north with the heat, wind and freezing.

[OhioBuckeye]

Originally Posted by Arctic Fox

There are two, unrelated, roofing scams.

In the first, someone will inspect your roof "for free" and tell you it needs repairs when it doesn't. This will be at your expense.

In the second, they will tell you that you need a whole new roof. Often they can get the insurance company to cover this.

The second has been accelerated by some insurance companies refusing to insure a roof over 20 years old, so it has been hard for them to deny that older roofs may need replacing due to wind damage over the years. A vicious circle for which they are partly responsible.

Honestly, what can you do, we were with Prodential Ins. for several yrs. & they seem to raise our rates every yr. finally I got tired of of it & went to Mercury Ins. then the first yr. after I went with them they raise our premiums to over $700. (this was for Home & Car Ins.) I made up my mind We’re going to switch after 1 yr. what a shame.I know anyone else won’t be any cheaper but I know one thing Mercury isn’t getting extra money from me, I look at it like I don’t get a raise ever yr. on my pension. Just me but I agree this is Ins. company scam. We have a brand new home that’s 4 yrs. old. There’s no reason why we should buy a new roof & a new Water Heater yet. I agree it’s a scam! I know this is what our grandchildren future is!