Florida is home to one of the most volatile property insurance markets in the country. With thousands of people moving here every day and the risk of hurricane damage during hurricane season, insurance rates are always fluctuating. However, there’s one destructive crisis that has had detrimental effects on premiums: roofing scams.
Unfortunately, there has been a large increase in roofing insurance scams, particularly in Florida. In an environment susceptible to climate damage, roofing scams are the last headache we want on our minds. That’s why, in this blog, we will discuss common red flags associated with roofing scams to help protect homeowners.
What Is a Roofer Scam?
Before we identify the common red flags of roofing scams, we need to define what it is. A roofer scam or roofing insurance scam is a crime that targets vulnerable homeowners by convincing them to pay an illegitimate contractor. Scammers will say that the roof replacement is covered by insurance and deceive you into signing away your rights to make the claim yourself. At this point, the “contractor” can either disappear off the face of the Earth or file fraudulent claims in an attempt to sue the insurance company. This usually leads to the insurance company settling the disputed claims for many times the original claim.
These types of scams have been running rampant through the state of Florida, and the ones who are affected most are homeowners through rising insurance rates. In fact, residents of Florida are paying nearly 3 times more than the national average for homeowners insurance. This means identifying roofing scams before they occur is of the utmost importance.
Know The Red Flags Of Roofing Scams
The most effective way to prevent roofing scams is by identifying the red flags. Here are key indicators that an illegitimate contractor is looking to take advantage of you through a roofer scam:
- Demanding more money: Insurance scammers love to halt their projects before they are done to “discover” new additional damage and ask for more money. Scammers will refuse to complete any work until more cash is forked over.
- Requesting a huge deposit: While regular deposits are a common business practice among legitimate roofing contractors, scammers will request a ridiculous amount of money before they even start working. Do a little research to find out what an acceptable deposit looks like where you live.
- Asking for your insurance check: Never sign over your homeowner’s insurance check to contractors who you aren’t 100% trustful with. Scammers will convince you that the project will require zero out-of-pocket money while you sign away your right to make a claim.
- Appearing right after a storm: One of the main reasons roofing scams are so prevalent in Florida is because there are lots of storms and hurricanes. Scammers will magically appear at your door right after a severe storm claiming that your roof is in poor condition. These people take advantage of the vulnerability caused by a hurricane.
Keeping these red flags in mind will help prevent potential scams, save you time and money, and help lower rising homeowners insurance rates.
Avoid Falling Victim To Insurance Scams
With the tremendous amount of insurance scams happening today, dealing with homeowners insurance can become a headache. That’s why you need a trusted and experienced partner. At COBIA Insurance, we have the necessary resources to help you find the best coverage for your needs and help you avoid falling victim to scams. For more information on our services, please
Contact us today to see how we can help you.